What insurances you should really have?

This question is asked at least once in the course of a lifetime, and surprisingly, many German citizens are unable to answer it correctly for themselves. The most common insurances are well known and are of course used, but there are a number of insurances that do not belong to the state social security systems, or complement them and should therefore be taken out in any case additionally.

In the following text, these insurances will be explained in more detail, ordered by their importance. Who considers that the alternative to an insurance always draws the possibility of horrendous costs with itself should dolichst consider which possibilities can be used still around itself optimally to insure.

The private pension insurance

Just in the times in which it is certain that large parts of the population with strong losses in the national pension must count is the private age precaution with the most important topic. There are different approaches, but we will only deal with private pension insurance here. Here, the consumer has the choice between the Riester pension and an unsubsidized private pension insurance policy.

Self-employed persons can also take advantage of the state-subsidized Rurup pension plan. The Riester pension is the ideal pension supplement for employees. Compared to fully private annuity insurance, you can hope for government-subsidized returns with it and if you take out the contract in time, a tidy sum comes together in the end. Private pension insurance without state subsidies is particularly well suited to the high-income population group and, with the appropriate income, is the more effective solution compared to the Riester pension. Especially with regard to the protection of retirement income, it is always important for consumers to compare the offers in order to achieve the best possible result. If you want to avoid poverty in old age and enjoy a certain quality of life after retirement, you will not get very far without an additional pension insurance.

The private pension insurance, no matter in which form, is therefore obligatory and belongs to the basic equipment.

Pension insurance

The private nursing care insurance

The state long-term care insurance is a great institution, but unfortunately in many cases it is not enough to guarantee high-quality care in the worst case scenario. Private pension provision is possible at any time, and even more than advisable. As with pension insurance, the options here also range from state-subsidized private insurance to private insurance.

The state-subsidized long-term care insurance is ideal for people with average and low incomes, while the private insurance without subsidies is the best option for people with high incomes. The state-subsidized long-term care insurance should be taken out as early as possible to ensure the maximum payout amount in the event of a need for care.

It is especially attractive because of its constantly low and state-subsidized contributions, which are also manageable for trainees, students and people who are unemployed. In addition, you can always take out additional private insurance, which is then also much cheaper because you already receive the amount from the state-subsidized nursing care insurance. In short: Private nursing care insurance with state support is the perfect solution for all citizens in Germany and should definitely be taken out in good time. If you want to take out additional private insurance, you can do so at any time, but you should make sure that the additional private insurance is not subsidized by the state.

Health insurance

Health insurance

Who comes over the contribution assessment limit of the GKV, stands before the choice either legally, or evenly privately to insure itself further. Here the decision is of course difficult, because the private insurances entice especially young people with low premiums and many benefits. However, one should not forget that these premiums are not set in stone and will most likely increase with the increasing age of the policyholder. The GKV, on the other hand, always levies its premiums depending on income, and this is a clear advantage especially in old age while drawing a pension.

In the meantime, it is also possible to take out additional private insurance against all eventualities at very low cost. Many of the legal insurances offer their members even particularly favorable conditions by co-operation with large private insurance enterprises and can replace so the achievements of a private health insurance company nearly completely and equivalently. The GKV is not only an alternative to the independent insurance, but actually the only possible solution.

Insurances for civil servants and certain occupational groups are not considered further in this text since certain individual circumstances are to be taken into account here.

The advantage of the most important three insurances also benefits the income!

One can set off the contributions which one must carry out in all cases completely from the tax. Who provides also saves on income tax and may even expect at the end of the year to get money from the tax office paid again

The reason for this, of course, is that the state places a high value on preventive care and wants to keep all options open for citizens. In short, it is always worthwhile to take out private insurance against the risks of old age and life, and consumers should always keep themselves informed about these three types of insurance.

Insurance against the risks of everyday life

In addition to the three important types of insurance, there are a number of risks against which one should insure oneself in any case. These will be explained in more detail in the following sections, but these additional insurances are often a bit tricky. On the one hand, they are sometimes urgently needed and are actually obligatory, but on the other hand, there are no possibilities for state subsidies in the area of the following types of insurance and often they cannot be claimed against tax either.

Also the design of the contracts is almost entirely left to the insurance companies, which is why the choice here should not be made alone. A knowledgeable insurance agent, a good friend or an expert acquaintance are always the best advisors you can get here to not lose track of the often complex contracts and thus achieve optimal coverage.

The disability insurance

An occupational disability insurance is the best way to protect against a loss of earning capacity. Some occupational groups have their own professional associations, which are not considered here, but even here an additional private insurance is often recommended. The state pension for reduced earning capacity is rarely sufficient to guarantee the standard of living and is also not suitable to guarantee good care.

An occupational disability insurance, as well as an annuity insurance, should be taken out as early as possible. Many insurance companies already offer "student-BUs. With them, pupils and students can secure themselves at an early stage and save massive costs in premiums, especially in later working life. Occupational disability insurance is usually tax-deductible and therefore a more than sensible addition to the insurance mix. Here it is important for consumers to always act, especially if you work in a profession that makes high demands on the physique or is particularly risky.

The private accident insurance

Private accident insurance provides comprehensive protection against the risks and subsequent effects of an accident at work and in everyday life. Especially adults with families should insure themselves comprehensively, as the state benefits are by far not sufficient to guarantee a certain standard of living. It also makes it possible to react flexibly in the event of accidents and to keep all options open.

In addition, an accident insurance often acts as a protection against one's own death. In the event of accidental death, it protects the heirs and enables them to adequately replace the missing income. Accident insurance is therefore a good decision in two respects and is also comparatively inexpensive. Accident insurance premiums are usually in the low double digits, depending on how many risks you want to cover and how well you want to protect your possible heirs.

Private life insurance

A life insurance policy usually serves a dual purpose: on the one hand, it comprehensively protects heirs against the risks of sudden death of the insured person; on the other hand, it can be terminated at any time at retirement age and is thus a component of private retirement planning. Again, life insurance is a private insurance for families. Another advantage of this insurance is that it can also serve as collateral for loans.

Life insurance is comparatively expensive, which is why it is mainly high-income groups that want to protect their descendants in this way. Life insurance is not tax deductible and, depending on the facts, may count toward taxable income if paid out. In the context of private old-age provision and the protection of descendants and close relatives, private life insurance is a good product that can be taken out, but does not have to be. Especially in times of low interest rates, life insurance can quickly become a loss-making business, which is why you should pay attention to which conditions and interest rates can be guaranteed when selecting offers.

The private liability insurance

Liability insurance is a necessary insurance to protect against claims from accidents and other incidents. It does not protect life and limb, but material assets. Often, it is used to comprehensively insure "house and home" against consequential damages and claims by third parties resulting from mistakes, accidents, natural events and other incidents.

Tenants are recommended to take out liability insurance, for families it is almost essential for survival. Business people should also have a liability insurance, as well as people who work as freelancers. Automobile insurance is a sub-type of liability insurance and is required by law. Within limits, a private liability insurance can be tax deductible, but maximum amounts must be considered.

The legal protection insurance

Legal expenses insurance protects the insured person against legal problems of all kinds. It is obligatory for the self-employed, but it is also worthwhile for salaried employees. From a certain income and wealth level it is obligatory in any case, because with the amount of income and wealth also increases the risk of legal problems which can be quite expensive in the case of the case.

Legal expenses insurance usually covers the costs of legal advice before and during a lawsuit and extends to the various branches of law. This includes in particular tenancy law, private law, commercial and trade law, traffic law, criminal law and social law. Legal protection insurance is tax-deductible for self-employed persons within the framework of operating costs, and for employees within the framework of statutory tax allowances.

Legal expenses insurance

Health insurance abroad

Those who like to travel should have additional insurance in any case. The health insurance for the foreign country is not particularly expensive, protects however comprehensively on each continent of the earth and on all world oceans. Also within the territory of the European Union should always be taken out a foreign health insurance. Although there are now uniform standards for treatment in other European countries, certain services such as repatriation are still excluded under the statutory health insurance. Who is insured in the statutory health insurance needs in any case a foreign health insurance, private health insurance offer here advantageously packages that already include such insurance.

A foreign health insurance is unfortunately not tax deductible, but as already mentioned, the costs are in the tolerable double-digit range and that per anno.

Home and property insurance policies

This section gets a little more complex, as insurance for home and property is either required by law in some cases, or should be a basic requirement. Landlords are in any case obliged to show the relevant insurance certificates, if only to ensure the safety of the tenants and the quality of the property. Private homeowners are not obliged to take out such insurance, but should do so in any case. Because damage to the house in particular can quickly become an expensive affair and cause massive holes in the household budget.

A very important component of this type of insurance, which is becoming increasingly important in the wake of climate change, is protection against environmental damage. Homeowners in risk areas, such as flood plains, should pay attention to the coverage against these damages in order to be one hundred percent safe in any situation. Insurances for house and land are fully tax deductible, no matter if you are a private homeowner or a commercial landlord.

Insurance for home and land

Insurance for individual assets

For particularly valuable assets, i.e. for property, real estate and ideal possessions, additional insurances with individual contract conditions can be concluded at any time. These insurances usually protect against loss, misuse and other risks which threaten the condition or the continuity of the insured object. These insurances are sometimes quite expensive, especially if the insured object is a high-value item. There are insurance companies that are specialized in this branch of insurances and can offer you individual solutions.

The costs for such an insurance are unfortunately not tax deductible and it is often the case that property with an extremely high value is not included in the private liability insurance. For this reason, the additional insurances for individual assets are often important and should be purchased to reduce the risk of asset loss.

Professional liability insurance

Insurance against professional malpractice is rarely a component of private legal expense coverage. Doctors in particular should take out additional insurance to avoid high consequential costs in the event of malpractice. For this, at least for this professional group, there are specialized insurance companies that can offer favorable rates. This so-called professional liability insurance is also obligatory for other professions, especially for professions involved in financial and asset management. In many cases, they are also required by law and their premiums are tax deductible.

Foreign insurance companies, meanwhile also insurance companies from Germany, offer appropriate insurances also for other occupational groups whereby the practical use is often unclear. If a professional liability insurance is urgently needed and if it is required by law, it is of course obligatory. But in most professions it is neither mandatory nor necessary, which is why the conclusion of a contract is not of much interest to the normal consumer.

Insurance for professional athletes

Health insurance against individual medical conditions

Within the framework of private health insurance, it is possible for consumers to additionally insure themselves against the risks of individual illnesses. In this way, if there is a certain risk of hereditary cancer, the quality of treatment can be significantly increased, but also particularly sensitive and necessary parts of the body can be additionally protected. In professional sports, these insurances are especially popular, and often urgently needed. For consumers, on the other hand, they are often uninteresting and not a real alternative since the offers of the respective health insurance companies usually sufficiently take into account the risk and the resulting problems. These special health insurance policies are, of course, tax deductible on an individual basis and, in many cases, quite reasonable. Due to the special characteristics and the often individual contract conditions, they are, however, a niche product that is less known to the general public.

Other additional insurances

Due to the international liberalization of the insurance markets, insurance policies can be taken out for almost every circumstance. Depending on the type of insurance and the circumstances, this may also make sense, but the insurance market in Germany is still predominantly characterized by the classic insurance products and individual products are mostly pure niche products. Who looks for thus something special must go inevitably abroad and obtain there offers. Here it is necessary to be particularly careful, because especially in non-European countries the legislation is often significantly different and often disadvantageous for the uninformed consumer. Those who are looking for such insurances should definitely seek the advice of a lawyer, or a very experienced insurance agent, in order to really get the benefit that is desired.

For insurances offered within the European borders the same applies. There are certain standards here, but they are not really up to date at the moment and cannot provide sufficient protection for the consumer. As this problem is not exactly on the top agenda of the EU Commission, this situation will not change in the near future.

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