Necessary Insurances – Which Coverage You Really Need
An immigrant to Germany faces two predicaments.
First, some insurances from home no longer provide adequate coverage and, second, salesmen are lining up to sell all kinds of ill-considered insurance products. Germany is a poorly regulated market (see HERE ), and it is often hard to work out, amidst all the noise, which insurances you really need.
Some insurances are compulsory in Germany:
1. Since 2009, every resident of Germany must have health insurance fulfilling certain legal requirements. This can be achieved through the public German health insurance system, although not everyone can receive coverage this way. More likely, you will use either a German or international private health insurance. Among the latter, however, it is important the insurance be recognized by the federal German insurance authority, BaFin. Every resident must also have a long-term nursing-care insurance (Pflegepflichtversicherung). Read more about health insurances HERE
2. Car insurance: if you own a car, you must have car insurance.
There is a large area of risk in your life that should be covered:
3. It is important to be covered for damages or injuries to third parties by way of accident or negligence. Such a “3rd party liability insurance” or “private indemnity insurance” is second only to health insurance in importance. Read more about this HERE.
4. It is a good idea to be covered for the loss of ability to generate occupational income on a long-term basis. In some countries it is the government that will provide this coverage. Not so in Germany. Here, you should be covered against occupational disability or critical illness. Further information HERE
5. If you are married, or with financial dependents, you should set up a decent term life insurance. This is in contrast to a whole life insurance, of which we strongly disapprove as it lacks a savings component. Term life insurance should be regarded as a house or car insurance; money well spent to cover an important risk, even if at the end of your life you never needed it. Read more HERE.
Or, if you don’t like to deal with all this yourself, contact us as your independent advisor HERE to organize all the necessary insurances for you.