If you die before reaching age 68, a lump sum death benefit becomes payable. The size of the lump sum death benefit depends on your age when you die.

If you have not decided who should receive the payment, it will be made according to the beneficiary next of kin applying from 1 January 2008. According to the Danish Insurance Contracts Act’s section 105a your next of kin are in below-mentioned order:

1. Your spouse/registered partner.
2. Cohabitant, if you live together and have, expect or have had a child together, or you have lived together in a relationship comparable to a marriage for the last two years before the death.
3. Descendants (children and grandchildren).
4. Testamentary beneficiaries.
5. Beneficiaries under an intestacy: parents, siblings, nieces and nephews, grandchildren, uncles and aunts.

There are no restrictions to who you can appoint as a beneficiary. You can also erase the beneficiaries – then the payment is made to the estate. You can read more here

The payment is exempt from taxes and dues. When the lump sum death benefit is paid to a spouse or registered partner, there is no estate tax payable. If payment is made to children and/or a cohabitant through more than 2 years, the estate tax accounts for 15 percent. On payment to others, the estate tax accounts for 36,25 percent (estate tax and additional estate tax).