Which insurances are important?

 

 

With all the insurance products on the market and all the dangers to which our health, our safety and our assets are exposed, how is an ordinary mortal supposed to keep track of which insurance one really needs?? Put simply, if you've never heard of a particular insurance policy, you probably don't need it!

In this article, we provide you with information about which insurances are actually useful or even indispensable. To give you a quick overview of which insurances are important for you, we have divided this blog post into five categories: Insurance for

Because working singles need different insurances than families, while for retirees quite a few insurances expire or are unnecessary, which seem quite reasonable for married employees.

Of course, depending on lifestyle, purchases or profession, there are other necessary insurances as well. For example, lawyers now need cyber insurance, dog owners need dog liability insurance, homeowners need fire insurance, and drivers need car insurance. But in this article we want to show, as basic and general as possible, which insurances are important for each of us at different stages of life!

These are the insurances that every citizen needs

Every person in Germany needs private liability insurance. Leaving aside the compulsory insurances required by law, private liability insurance is, without any ifs and buts and completely independent of social and financial status or profession, an indispensable policy that provides a lot in case of emergency, but costs very little.

Every employee pays into the pension insurance. It also insures against unemployment and pays for statutory accident and long-term care insurance. For compulsory health insurance, he can choose between a statutory fund and private health insurance, depending on his income. These five "branches" (unemployment insurance, statutory health insurance, long-term care insurance, the German pension insurance and the statutory accident insurance) are summarized as statutory social insurance.

Self-employed persons and entrepreneurs must also take out health insurance. Accident and nursing care insurance as well as insurance against old age and unemployment are not mandatory, but definitely advisable! Depending on the profession, payment into state pension funds may be obligatory, as well as specific professional liability insurance.

Very useful for all working people, whether employee, self-employed or employer, is an additional private pension plan. Because the state pension is barely enough – and is often the first pot from which politicians redistribute funds. Private pension insurance can be unit-linked or based on the British model, which provides a lump-sum payment at the start of the pension instead of variable annual annuities. Whether you also take out the Riester pension as a partially sensible basic pension in a classic or unit-linked form, or as an investment savings plan, is up to you. The same applies to the Rurup pension, which can make sense depending on income. A company pension plan is usually useful, especially in conjunction with a private health insurance policy.

Important insurances for singles

As a single person, two insurances are indispensable: private liability insurance and occupational disability insurance (BU). Homeowner's insurance costs little and provides a lot – it is one of the most sensible insurances that everyone needs.

Legal expenses insurance can come in handy. Here, however, you should compare the rates carefully before taking out the policy and check whether potential legal cases that could affect you are covered or have to be included in the insurance for expensive additional premiums. A private health insurance can be a sensible alternative to the statutory health insurance from a certain income and age. Private accident insurance or supplementary health insurance, such as a supplementary dental plan, can optimally enrich the statutory protection. Life insurance is mostly superfluous.

Insurance that often makes sense:

• private old-age provision
• Legal expenses insurance
• Accident Insurance
• additional health insurance

Sensible insurances for married couples

With a life partner, whether registered or married, a new phase of life begins. This also changes the need for insurance. Private liability insurance remains indispensable. Additional health insurances are sensible insurance products for married people, a household insurance is highly recommended.

Depending on the income distribution in the household, occupational disability insurance becomes dispensable – as long as there are no children. A legal protection insurance, or better two are due to the added risk of divorce now already more interesting than for singles. The following applies to life insurance: endowment life insurance is usually for the wastepaper basket, term life insurance is just as sensible as private old-age provision.

Often sensible insurance:

• private old-age provision
• occupational disability insurance
• Legal expenses insurance
• Term life insurance
• Accident insurance
• additional health insurance

These insurances are important for families

When you start a family and bring children into the world, you are suddenly surrounded by many more dangers and risks that need to be insured. When your child is involved in an accident, it's sheer horror for parents. The right insurance coverage ensures that, in the event of an emergency, at least you don't have to worry about finances after a stroke of fate, or at least much less so. Accordingly, the health insurance policy should also be re-examined: To what extent is your child also insured?

Essential for families are personal liability insurance and disability insurance. A household insurance is still very advisable. Additional health insurance, accident insurance and legal protection insurance can be sensible additions. Those who already have private health insurance should keep it. If term life insurance is important for anyone, it's for a family. On the other hand, endowment life insurance is generally superfluous. With regard to old-age provision, company offers and, depending on income and number of children, the Riester pension are sensible insurances.

• Occupational disability insurance
• household insurance
• Private liability
• Term life insurance

Often sensible insurances:

• private old-age provision
• Legal expenses insurance
• Accident insurance
• additional health insurance

What insurance do you need as a pensioner?

For seniors who are already drawing their pension or annuity, it is rarely a matter of taking out new insurance policies. Switching from public to private health insurance is nearly impossible at an advanced age and financially impossible to manage on your own. Even additional health insurance policies are now almost impossible to take out anew. For retirees, it's more about keeping important policies and canceling or cashing out policies that are no longer needed.

Private liability insurance remains indispensable, household contents and accident insurance remain useful. Existing health (supplementary) insurance often only proves useful in old age and should not be canceled. Company pension plans expire when you become a retiree, as does disability insurance. Legal protection insurance is no longer important for many seniors, and life insurance even less so.