When there is water damage or fire damage in the home, the despair is often great: furniture is often damaged or the home is flooded. Then it is important to be well insured. This is where household contents insurance comes into play, offering you comprehensive insurance cover and peace of mind. You can find out everything you need to know here.
Household contents insurance protects the contents of your home against various risks. The insurance cover in the event of damage extends to all your movable property in your home. This includes, for example
Anything that is not permanently installed in the house and belongs to you can be insured against damage via household contents insurance. Items and household contents in adjoining rooms, such as the garage or conservatory, are also insured.
If damage occurs, household contents insurance covers the costs of removing, repairing and replacing destroyed items in the home. In addition, household contents insurance can also pay for accommodation in a hotel if your home is temporarily uninhabitable. This is often the case after water damage or a fire, for example.
In addition to the basic benefits, many household contents insurance providers offer you additional benefits to cover your household contents, which you can book as an option to your policy. This involves additional costs, but also guarantees more comprehensive protection for your household contents: for example, you can insure yourself against natural hazards so that your home contents are also protected against damage caused by natural forces.
Basically, household contents insurance protects your movable property against the following risks:
Fire insurance covers damage caused by fire, explosion or lightning, for example. The insurance cover also includes consequential damage caused by smoke, soot or extinguishing water in your home.
For example, if there is a fire in your home due to a faulty cable on a household appliance, the fire brigade will extinguish the fire with water. In this case, the household contents insurance covers the costs of the damage caused by the fire to the household contents in the home. The costs for water damage to the contents caused by the extinguishing water are also covered.
If the damage is caused by mains water, household contents insurance does not always cover the costs. Damage to movable property is covered if, for example, a pipe bursts or a hose bursts on a water-bearing household appliance.
Damage caused by burglary, robbery or vandalism is also covered by household contents insurance. This also includes a bicycle or e-bike that is stolen from the cellar. Good household contents insurance policies cover bicycle theft regardless of where the theft took place: if your bicycle is stolen at the railway station or in a beer garden, the damage caused by the theft is covered by household contents insurance.
The insured risk ‘storm’ covers damage to your property caused by wind force 8 or higher. In the event of hail damage, the wind force is irrelevant. However, many household contents insurance providers do not cover damage caused by floods, groundwater or heavy rain. In order to be able to claim these benefits from the insurance, however, you can book optional supplementary policies for an additional charge.
Taking out household contents insurance is worthwhile for everyone. It doesn't matter whether you own or rent the home: if your household contents are damaged by one of the insured risks, you are entitled to compensation from the insurer for the replacement value. This means that your household contents insurance will pay you the amount required to buy new damaged or stolen items. Their condition or age does not matter.
Another advantage is that there is no waiting period for household contents insurance. As soon as you have registered with the insurer, the cover for your household contents takes full effect.
Household contents insurance is voluntary. However, as water or fire damage to your home can occur unexpectedly at any time, this insurance is the best way to protect your contents from expensive consequences.
Household contents insurance only covers the costs of movable items. This means that anything that is permanently attached to the house is generally not covered by the insurance. If, for example, water damage in the home results in damaged flooring or a built-in wardrobe, this is covered by buildings insurance. However, you only take out this policy if you are the owner of a house - you do not need it if you rent the flat. This is why many owners opt for a combination of both policies in order to be optimally insured against damage.
In most cases, household contents insurance does not cover any costs if the insured acts with ‘gross negligence’. For example, if you forget to turn off the tap when leaving the house and water damage occurs, you will be liable for the costs yourself. The same applies if you forget to lock the front door of your home, making it easy for a burglar to get in.
Although there are some household contents insurance tariffs that also cover you against negligence, these tend to be the exception and are usually very expensive. Damage caused by fire is generally covered by household contents insurance. However, this only applies if it is an open fire. Imploding electrical appliances or smouldering fires are not included in the insurance cover.
Household contents insurance only pays for storm damage from wind force 8 and above, provided that you have closed the windows beforehand as a preventative measure and they have only been destroyed by the storm. If the wind can then cause damage to the house unhindered, the household contents insurance will pay for it. However, the damage to the window itself is also covered by buildings insurance.
Household contents insurance also does not cover damage caused intentionally. If you deliberately destroy your contents and want to be reimbursed by the insurance company, it will not pay out any benefits. Deliberate misrepresentation of the circumstances is also regarded as insurance fraud and can lead to cancellation of the household contents insurance.
It is important to know that damage caused by natural hazards is not normally covered by household contents insurance. You must apply for this benefit when taking out the policy with additional natural hazard cover.
This includes, for example, damage caused by
You should consider various aspects before taking out household contents insurance.
One of the most important points is the right sum insured for your household contents. If you set it too low, you will be underinsured. If the value of your contents is higher than the sum insured, the insurer may reduce your benefits and you may have to cover some of the costs of settling the claim yourself. This can ultimately be more expensive than choosing a higher sum insured from the outset, which fully covers the value of your household contents.
You have two options for calculating the right sum insured for your household contents:
If you collect art, expensive watches or other valuable items in your home, you must declare this when taking out the insurance. The insurance company may ask for an inventory list or send an expert.
Normally, damage caused by scorching, soot and smoke as well as surge damage are not covered by household contents insurance. However, you can extend your policy with most insurers to protect you against these risks as well. For example, if you have a lot of electrical or electronic appliances in your household that increase the risk of fire, you should consider adding them to your policy.
Although water damage in the home is covered by household contents insurance, this does not include damage caused by leaking water. This includes, for example, leaking aquariums or water damage - these are not normally covered by the insurance unless you take out extra cover for these risks. If this results in damage to a neighbour's home, the costs are covered by personal liability insurance.
Many household contents insurance providers offer you the option of taking out certain supplementary insurance policies in order to optimise the scope of benefits of your household contents insurance to suit your needs. These include the following supplements:
The exact cost of household contents insurance depends on the value of your household contents and the scope of the insurance cover. This means that if the sum insured is higher, you will also pay higher premiums.
If the contents of your home are damaged, stolen or destroyed as a result of an insured risk, the insurance will pay for it, but only up to the agreed sum insured. You can take out the cheapest tariffs for around 10 to 15 euros per month.
Even in the event of minor damage, taking out household contents insurance can be worthwhile from a financial perspective: If there is damage to furniture or carpets due to water damage, the repair and replacement of household contents can quickly cost several hundred euros. These costs alone often exceed the sum of the monthly household contents insurance premiums paid to date.
In order to receive money from your insurer in the event of a claim, you as the insured person also have certain obligations. These are known as obligations and are set out in your insurance contract.
You should therefore familiarise yourself at an early stage with how to behave correctly in the event of a claim in order to be able to claim on your insurance cover. The most important steps are
Immediate measures: If you notice any damage, you are obliged to contain it as far as possible. Of course, you should never put yourself in danger to do this. However, to prevent consequential damage, you should close the main tap if a pipe bursts, for example, or otherwise try to prevent worse until the fire brigade arrives. However, you do not have to carry out repairs in the home yourself. In the event of a fire or other situation that endangers your life and that of your loved ones, the most important thing is for everyone to move out of the danger zone.
Damage report: Notify the household contents insurance company of the damage as soon as possible - preferably in writing. Many insurers now offer a practical app for this purpose, which you can also use to submit the damage report online. In the event of a burglary or theft, please also call the police, who can secure evidence on site. Important: Make sure you adhere to the specified deadline for reporting the damage to the household contents insurance company, which in most cases is only a few days. If you only inform the insurance company about the damage after a few weeks, you jeopardise the insurance cover for your household contents.
Documentation: It is best to send photos or videos as evidence so that the insurance company can see the scene of the incident for itself. If you have suffered a break-in and theft, the police will often ask for a list of the stolen or destroyed items.
Damage repair: Depending on the extent of the damage, it is up to the fire brigade or a professional restoration company to repair the damage. Do not remove anything from the scene of the damage that you do not urgently need and do not dispose of anything that could be important for settling the claim later. You do not have to carry out repairs. After a fire, you should not enter the scene of the damage until it has been cleared by the fire brigade: The air in the room is often contaminated with soot and other toxic substances for days.
Although household contents insurance is not compulsory, it is one of the most important policies for private individuals. Fire or water damage to your home can occur unexpectedly at any time - which is why it is essential to have the best possible insurance cover for your household contents. Household contents insurance not only provides you with financial security, but also gives you peace of mind in your home.
However, if you have homeowners' insurance, you are on the safe side: the insurance covers any damage to your property. We will now show you what damage and costs you can protect yourself against with homeowners' insurance, when it pays out and what it costs.
For you as a property owner, homeowners insurance is an important form of risk protection against potential damage to your building. In its basic version, the insurance covers damage to your residential property caused by fire and lightning, mains water or storms and hail.
The following example shows just how important homeowners' insurance is for homeowners: in 2020 alone, German insurers had to pay out around 5.5 billion euros for damage to residential buildings.
Please note in connection with residential buildings insurance: For the insurance cover to apply, your property must be a building used at least 50 percent for residential purposes. If this is not the case, you must take out buildings insurance for commercial properties.
Your homeowner's insurance pays out if an insured event causes damage to your building.
The basic risks covered by the basic version of homeowners' insurance are
Other perils for your building can be included in the homeowner's insurance contract on request and for an additional charge.
If one of the perils covered by the insurance causes damage to your building or parts of the building, the homeowners' insurance will pay for the damage. In addition to the main building itself, the following building elements are included in the insurance cover:
With many insurers, insurance cover can be extended to outbuildings (garages, sheds or carports).
The basic version of most homeowners' insurance policies covers fire, water damage and storm damage to the building. You can now find out exactly what these types of damage are:
There are various types of damage to the building that are not covered by homeowners' insurance. In particular, it does not pay for damage to appliances, furniture, clothing or other movable items in your building. You can take out household contents insurance for such damage. In addition, the following types of damage are not covered by buildings insurance:
In its basic versions, homeowners insurance does not cover damage caused by natural hazards.
This means that your insurance will not pay out if your building is damaged by earthquakes, landslides, floods, avalanches or heavy rainfall. However, especially now - in times of climate change - it is becoming clear that it is important to insure residential buildings against these risks and damage. To obtain appropriate protection, you can add the “natural hazard insurance” module to your homeowners' insurance.
Homeowners' insurance is not compulsory.
Nevertheless, it is a must for homeowners. After all, property damage or the destruction of a building can have serious financial consequences. Homeowners' insurance pays for any damage that occurs or finances reconstruction if your building is destroyed.
It can therefore be said that no property owner should do without homeowners' insurance. This also applies to apartment owners - although there is a special feature here: if you own an apartment in an apartment building, you do not take out homeowners' insurance yourself and only for your apartment. Instead, the condominium owners' association (WEG) regularly takes out homeowners' insurance for the entire building. This protects all condominiums equally against potential damage.
If an insured event occurs in the event of damage, homeowners' insurance pays:
The basic version of homeowners' insurance is available from many insurers for as little as around €10 per month. If you want to extend the insurance cover to extreme weather events, the insurance will cost you from 15 euros per month. The amount of the insurance premium depends on various factors:
In the event of a claim, it is important that you document all damage to your building for the building insurance. To do this, prepare a written damage report, attach photos and report the damage to your insurer immediately. Depending on the extent of the damage, the insurance company will send an expert to check the amount of damage.
Also make sure to take emergency measures to prevent further damage to your building. This means, for example: If you notice tap water damage, turn off the main tap on the water pipe immediately. If the roof of your house has been covered by a storm, cover it with a tarpaulin. You do not have to carry out a complete repair. If you have to repair damage to your home yourself immediately because it would otherwise be uninhabitable, discuss the measures with your insurer beforehand.
If the ownership of a property changes due to purchase or sale, the insurance cover of the homeowners' insurance is automatically transferred to the new owner by law. However, the new owner has the option of canceling the buildings insurance immediately or at the end of the insurance term and opting for an insurer of their choice.
If the ownership structure changes due to an inheritance, the heir automatically enters into the existing homeowners' insurance. Unlike a buyer, they cannot cancel the insurance for the building immediately.
As a homeowner, you are not obliged to have homeowners' insurance. Nevertheless, we advise you to take out appropriate insurance against potential damage to the building.
If your building is damaged or completely destroyed by fire, for example, you will be faced with immense costs. In the worst-case scenario, the reconstruction costs could threaten your livelihood. Therefore, insure your building with homeowners' insurance. Make sure that the agreed sum insured corresponds to the value of your building.
Switching to private health insurance (PKV) offers many advantages, including more personalized benefits and shorter waiting times. Unfortunately, however, these benefits also come with high costs. Fortunately, as an employee you don't have to pay the insurance premiums alone. You are legally entitled to a subsidy from your employer. Below, we explain everything you need to know about the employer subsidy so that you can enjoy the full benefits of private health insurance.
The employer subsidy for private health insurance is a financial contribution that your employer makes to reduce the cost of your private health insurance. This subsidy usually corresponds to the share that your employer would also pay towards statutory health insurance. The aim of the employer subsidy is to offer employees with private health insurance similar support to those with statutory insurance. This allows you to enjoy the benefits of private health insurance as an employee without having to bear the often high contribution costs alone.
In order to benefit from the employer subsidy, you must meet a number of requirements:
Your employer will subsidize half of your private health insurance contributions. They do not have to pay more than the amount they would pay for statutory health insurance. In 2024, the maximum amount of the employer subsidy is around €421.77 per month. In fact, your employer may also pay a higher subsidy, but is not legally obliged to do so. In this case, the allowance counts as pay. You must therefore pay tax on the additional payments.
The exact amount of the employer's subsidy depends on your individual insurance contribution and is calculated on the basis of your private health insurance premium invoice.
The employer subsidy for private health insurance naturally has a number of advantages for you:
The employer's contribution to your private health insurance is tax-free. It is not part of your taxable gross income and therefore does not have to be declared in your tax return.
The Social Security Code (SGB V) determines the legal basis. The amount of the subsidy and the conditions are regulated here. According to § 257 SGB V, the employer is obliged to pay the allowance if the above-mentioned conditions are met.
You can usually apply for the employer subsidy by submitting your insurance policy and contribution invoice to your employer. Your employer checks the information and includes the subsidy in your payroll. If your insurance premium changes, for example if the insurance company adjusts the premium, you must also submit the new data so that the subsidy can be changed accordingly.
Private health insurance often offers more comprehensive benefits than statutory health insurance. These include, for example, shorter waiting times and better conditions for hospital stays. However, private health insurance is generally more expensive and therefore requires careful consideration of the individual advantages and disadvantages. The advantages include
However, despite the advantages, private health insurance also has some disadvantages:
So whether private health insurance is the right decision depends very much on your individual situation.
The costs of private health insurance vary greatly. They depend on
It is therefore not possible to make a general statement about the costs of private health insurance. The benefits of private health insurance can be adjusted individually. In principle, you benefit from the following private health insurance benefits
The employer subsidy for private health insurance provides you with important financial relief. It covers part of the often high contributions and ensures that the support is similar to that of statutory health insurance. The subsidy is tax-free and can also be used for family members, which is particularly advantageous due to the lack of family insurance in private health insurance. Nevertheless, you should carefully consider the high costs of private health insurance and the requirements for applying for the subsidy. If you are self-employed, for example, you will have to pay the insurance premiums entirely on your own. This can lead to a major financial burden. For employees with private health insurance, the employer subsidy is a helpful way to reduce the financial burden of private health insurance. We will be happy to help you decide whether and which private health insurance is best for you.
Statutory health insurance is an essential part of our lives, as it ensures that we receive all-round care in the event of illness. Nevertheless, it can make sense to think about changing health insurance provider. We explain everything you need to know below.
In Germany, you have a free choice of statutory health insurance providers because, unlike private health insurance providers, they are not allowed to reject you. The benefits of statutory health insurance are defined by law. For the most part, you receive the same medical benefits in every statutory health insurance fund, which only vary within the additional benefits. The biggest difference is therefore the contribution of costs. The notice period for statutory health insurance companies is only two months to the end of the month if you have been a member of your statutory health insurance company for at least twelve months. This means that if you cancel your old contract by the end of January, your insurance cover can start from April 1st.
Even if you have been a member for less than twelve months, you can make use of the special right of termination. This comes into effect if the health insurance company increases the premiums. You can then cancel by the end of the month in which the first increased amount is due. When switching health insurance companies, you must bear in mind that you cannot switch to a company that is not open in your federal state. Although most health insurance companies are open nationwide, there are also some that are only open in Berlin, Brandenburg and Mecklenburg-Western Pomerania, for example. If you have claimed certain benefits from your health insurance company, you must note the following:
Despite the identical benefits catalog, there are reasons to change health insurance provider. These include, among others:
Switching to a new health insurance company is not always worthwhile. Most people change their statutory health insurance in order to pay a lower contribution rate. However, you should make sure that you don't lose out on additional benefits as a result of the lower price. This is particularly important if you already make use of such benefits. If your current health insurance company rejects an application for certain aids, it may be worth finding out from another health insurance company whether they would approve the application. If so, it is certainly worth switching, unless the premiums with the other insurer are significantly higher. A change of health insurance company offers you a particularly great advantage if self-payer benefits are covered. This could be a subsidy for professional teeth cleaning or a sports course, for example.
Changing statutory health insurance is simple and straightforward. You should follow the following steps:
To find the best health insurance company for you, you need to compare different providers. The best way to do this is via comparison portals. When comparing, you should pay particular attention to the contribution costs and the additional benefits offered. If you are planning or already have a family, you should check the family-oriented benefits. These include support during pregnancy. By comparing the different offers of health insurance companies, you can find the one that best suits your needs and financial means. With a careful comparison, you can get the best benefits at the best price.
Previously, statutory health insurance companies had to inform their members in writing about a premium increase. This obligation was lifted in June 2023 to save on postage. You will now be informed via an announcement on the website or in the member magazine. This means that you need to be a little more vigilant so that you don't miss the associated notice period. So check regularly to see if there are any changes to premiums. Most insurance companies now have digital offerings. These include simplified communication via the website or a health app that reminds you of check-up appointments. Electronic patient files have also been offered by health insurance companies since 2021. This means you always have your vaccination card and treatment record with you.
Switching to statutory health insurance can be financially worthwhile in certain situations and give you access to better benefits. If you are considering switching, you should define your individual needs precisely. Then carefully compare the different health insurance companies to choose the best option for your life situation. Your health should always be your top priority, so a health insurance company that offers you fully comprehensive cover is essential.
The Riester pension has been a popular option for private pension provision for over 15 years. As it is subsidized by state allowances and offers tax advantages, it is particularly worthwhile for families with children. Nevertheless, the Riester pension is no longer profitable for everyone these days and also has disadvantages. We present everything you need to know about this topic in more detail below.
Employees, but also the self-employed or civil servants are allowed to take out a riester, provided they meet certain requirements. Married couples may save through their spouse.
Other beneficiaries of the Riester pension include
The state subsidizes Riester contracts in two ways:
In order to benefit from the full subsidy, you must pay at least 4 percent of your gross income into the Riester pension each year. The allowances are already included. You can claim a maximum of 2,100 euros for tax purposes as part of the Riester pension.
A Riester contract is subsidized by the state with an annual basic allowance of 175 euros. If you have children born before 2008, there is an additional allowance for children of 185 euros. For children born in 2008 or later, you will receive an allowance of 300 euros.
Please note that the child allowance is only paid out for as long as you receive child benefit.
If your child is studying or training, the Riester pension allowance is extended until the age of 25.
Once you have taken out a Riester contract, you generally pay at least 4% of your gross income into the Riester pension each year for your retirement provision. The calculation is based on your salary from the previous year.
Here is an example: If you earned 38,000 euros gross in the previous year, you pay in 1,520 euros in the new year. The state allowances are deducted from this.
It is quite possible that your own contribution to the Riester pension is eliminated by the allowances alone. In this case, you only pay a minimum contribution of 60 euros per year so that you are entitled to the state subsidy for the Riester pension.
Riester contracts for old-age provision are available in various forms. Before taking out a Riester contract, you should seek comprehensive advice on which type is best suited to you and your retirement provision.
Riester pension insurance is the classic Riester product that guarantees you a lifelong pension with fixed benefits. Security plays a key role here: you already know at the time you take out the policy how high the pension will be later on. After taking out the contract, you pay four percent of your gross income (maximum 1,925 euros) into the Riester pension each year and receive a state allowance of 175 euros. This means you can claim a total of 2,100 euros against tax.
Currently, around two thirds of all Riester contracts are Riester pension insurance policies. However, this does not mean that state-subsidized pension insurance is also the most profitable Riester pension option: although it offers you security, the pension is not particularly high when interest rates are low. In addition, Riester pension insurance is the most expensive product compared to the other variants, as high administrative costs eat up a considerable proportion of the contributions paid in during the first few years of the Riester pension contract.e of how you can proceed when comparing supplementary dental insurance.
Around a fifth of all Riester contracts are fund savings plans. Despite low interest rates, this Riester product still offers the highest returns and is therefore particularly worthwhile for young people. Unlike normal fund savings plans, at least the contributions paid into this product and the allowances are available in the Riester account from the time of retirement. In return, a certain proportion of the money saved is invested in secure pension funds.
Please note that this form of retirement provision can be affected by price fluctuations depending on the term: Bad times on the stock market have a direct negative impact on your return. The risk of this pension product is correspondingly high. You are only guaranteed the contributions paid in as well as the government allowances. However, with a longer term and starting the contract at a young age, price fluctuations can be compensated for somewhat.
The aim of housing Riester is for you to be able to live in your own property in old age and no longer pay rent. To ensure that savers achieve this goal more quickly, the state supports Riester savers with allowances or tax breaks. If you would like to benefit from housing Riester, a few conditions apply:
With the help of housing Riester, you can receive up to 300 euros per year to repay a property loan. Important: The intended use is mandatory for claiming the subsidy. You may only use it for real estate financing or for the age-appropriate conversion of a property.
You can also apply for housing Riester in conjunction with a home loan and savings contract. You can also convert an existing home loan and savings contract into a Riester contract.
The Riester bank savings plan initially works in a similar way to a normal bank savings plan: Your balance and the savings installments earn interest continuously. However, interest rates are currently very low, meaning that you can almost only generate income through state subsidies. To be entitled to this, you must also pay at least four percent of your gross income from the previous year into your Riester contract. You will then receive 175 euros a year from the state as a subsidy. You can also deduct the deposits from your taxes.
With the Riester bank savings plan, you enjoy a high degree of security, as price fluctuations have virtually no impact on the return. The costs during the savings phase are also relatively low. Depending on your individual situation, you can benefit from tax advantages or state subsidies - although other forms of Riester pension also offer this. Interest income is extremely low with this product, which is why the Riester bank savings plan is hardly ever used.
The savings phase of the Riester pension normally ends when you retire. This automatically marks the start of the payout phase of your Riester pension, which you receive in addition to the statutory pension as a retirement provision. It is made up of the credit balance saved over the term of the contract from the contributions paid in, the state allowances and the return.
An important question is: How much do you actually get out of the Riestern? There is no general answer to this, as the amount of the payments always depends on how much you have paid into your Riester contract.
In general, however, the higher the amount saved and the longer the contract term of the Riester pension, the higher your return will be. The state allowances are also a decisive factor. There are also differences between the individual Riester products. We therefore recommend that you take a closer look at various products and compare the providers with each other before concluding a contract. If you have any questions about the Riester pension and state subsidies, we will be happy to help.
You can find out the approximate first payment date by looking at the pension notification from the German Pension Insurance. However, it also depends on the agreements you have made with your insurance company. As a Riester saver, you can also help determine the payment date to a certain extent.
The following cases must be distinguished:
Our recommendation: You should only take advantage of this scheme if you are unable to continue working. If your health allows you to continue working beyond the age of 60, this will only have advantages in terms of the return on your pension.
If you terminate your Riester contract earlier than planned or use the amount saved for other purposes, this is known as harmful use. This means that you will have to pay back any subsidies you have received and includes both allowances and tax benefits.
If you want to use the balance to buy a property to live in yourself, there is of course no repayment obligation.
Please note that the interest earned must also be subsequently taxed as other income.
We recommend that our customers close their Riester contract rather than terminate it.
This has various advantages for you:
As the purpose of the Riester pension is to close the pension gap in old age, you should be aware that if you stop paying contributions, the allowances may be reduced and you will therefore receive less money. The originally calculated pension will also be reduced accordingly during the dormant period of the Riester contract.
In October 2024, the German government published draft legislation for a reform of private pension provision. It contains plans for extensive changes to the Riester pension.
The main points of the draft legislation are an increase in the maximum contribution limits, a reduction in the contribution guarantee and a change to the allowance system. In addition, the introduction of a new retirement provision model equivalent to the Riester pension is planned: the so-called retirement provision deposit.
The reform is to be passed before the end of this legislative period. The planned start date for the changes is January 1, 2026.
Whether you make provision with the Riester pension or otherwise, your retirement provision must match your personal needs. First and foremost, retirement provision is nothing more than asset accumulation. Basically, everyone has to decide for themselves whether they want to take advantage of the Riester pension as a retirement provision. If you are prepared to invest more money, the Rürup pension may be the better choice.
The health of your teeth is invaluable. Not only pain-free eating is important for our well-being, but also a radiant smile. However, dental treatment and dentures can be expensive and are often only partially covered by statutory health insurance. Supplementary dental insurance is available to close this insurance gap. However, choosing the right insurance can quickly become overwhelming due to the numerous offers. Today, we'll explain the factors you should look out for when comparing different supplementary dental insurances so that you can choose the best option for you!
Supplementary dental insurance offers benefits if you don't have comprehensive dental cover. Regardless of whether you have statutory or private insurance, it is a worthwhile supplement for all age groups who want to take care of their dental health.
Here is an example:
As a member of a statutory health insurance fund, you have to pay a significant proportion of the cost of dentures yourself, usually between 25 and 40 percent. Even for the simplest dental prosthesis option, such as a metal crown, you will pay at least 350 euros out of your own pocket. If you opt for additional private medical services such as implants or special treatments, your own contribution increases to around 80 to 90 percent of the total costs, which can amount to between 2,500 and 3,000 euros.
Supplementary dental insurance supplements the benefits provided by statutory health insurance (SHI). They cover part of the costs for dental treatment that is not covered or only partially covered by statutory health insurance. This includes high-quality fillings, crowns, bridges and implants. The costs for these treatments are often extremely high and, without supplementary dental insurance, lead to a major financial burden for many people. Fortunately, there are many different supplementary dental insurances with different prices and benefits. This allows you to find an insurance policy that perfectly suits your needs and financial means. To choose the best plan for you, however, you should compare different offers!
As already explained, there are many different tariffs offered by different insurers. Comparing offers is essential for the following reasons:
The best-known test of products and therefore also of supplementary dental insurance is carried out by Stiftung Warentest. For this comparison, the insurance benefits for dental prostheses were examined. This includes implants, inlays, private care and standard care. The upper reimbursement limit for the first few years and the regular provision of several services per year are then evaluated. Dental treatments were not tested. Depending on what you want from your supplementary dental insurance, you should therefore not rely solely on the evaluation of Stiftung Warentest.
Our tip: An insurance broker can help you find the right supplementary dental insurance plan. Thanks to their expertise and market knowledge, you can save time and find the best cover.
Good supplementary dental insurance covers dental treatment, preventive treatment and dental prostheses. The monthly costs should not exceed your financial means. Here is a brief overview of a few insurers and their offers:
This is just a small example of how you can proceed when comparing supplementary dental insurance.
Here's how you can find the best supplementary dental insurance for you:
The health of your teeth is a valuable asset. Supplementary dental insurance can help protect them. Comparing supplementary dental insurance is the key to finding the best cover for your teeth. Tests and reviews from independent institutions can help you make the right choice. However, you should pay attention to which benefits are included in the tests. Consider your individual needs and financial situation to find the perfect insurance for you!
Today's world is fast-paced and unpredictable. Risks and unforeseen events are our constant companions, which is why it is so important to be covered for all eventualities. Even if we don't wish it on you, an accident can drastically change your life from one moment to the next, both health-wise and financially. Accident insurance is there to protect you financially in such situations. It is designed to provide you with financial support in difficult life situations. But how useful is this type of insurance really? Find out in this article, along with everything else you need to know about accident insurance!
No matter how carefully you go about your everyday life, you are unfortunately not protected against the risk of an accident. Imagine being hit by a car in your free time. Or perhaps you have a high-risk hobby such as horse riding or skiing? An accident can injure you so badly that you are permanently restricted. In the worst case scenario, the consequences of an accident can even lead to you becoming unable to work and losing part of your income as a result. Statutory accident insurance only covers accidents that happen in connection with your work. Private accident insurance, on the other hand, also offers you valuable support for accidents in your free time. It covers the financial burdens that can arise from an accident. In the event of a claim, it pays you a certain amount of money that you can use as you wish. This sum of money depends on the agreed insurance benefit and the limb tax. For example, you could use the money to maintain your standard of living or have your home converted to make it barrier-free.
The exact benefits depend on the insurer and the tariff you choose. As a rule, however, the following benefits are included in the insurance cover:
Many insurers also cover rescue costs, daily hospital benefits and accident-related cosmetic surgery.
The premium costs for accident insurance also vary depending on the provider and the scope of benefits. If you have a risk-free occupation, you can find insurance cover for as little as 105 euros. For high-risk professions, the premium costs are around 170 euros.
Receiving money after you've had an accident sounds really good at first. Accident insurance actually offers a number of advantages:
As you can see, accident insurance offers you comprehensive protection in the event of an emergency, depending on the sum insured and limb tax.
But despite the many advantages, there are also some disadvantages to this insurance:
The decision to take out accident insurance should therefore be carefully considered. Such insurance is particularly useful for people who are not covered by occupational disability insurance. This pays out regardless of the cause of the impairment. In addition, benefits are paid if you are expected to be unable to work in your current profession for at least six months. However, the premium costs are significantly higher and the health check is more extensive. So if you already have pre-existing conditions or work in a high-risk profession, accident insurance is a sensible alternative to occupational disability insurance.
You should pay attention to the following points when choosing a rate:
Benefits that do not necessarily have to be included in accident insurance include:
Accident insurance undoubtedly offers important financial protection in the event of an accident. It protects you against the financial burdens that can arise from accidents. The benefits include a one-off payment or even an accident pension if you are so severely impaired that you are unable to work. However, bear in mind that accident insurance, as the name suggests, really only pays out in the event of an accident. Illnesses and psychological consequential damage are usually excluded from the insurance cover. Despite the low premium costs, you should therefore first find out whether you can take out occupational disability insurance. Regardless of the cause, it offers you a monthly pension for as little as six months of occupational disability. However, if you are unable to take out occupational disability insurance, accident insurance is a sensible alternative. Let our experts advise you on accident insurance now.
Patients in Germany have access to a two-tier or dual insurance system. Depending on your circumstances, group membership and profession, you can choose between statutory and private health insurance. However, the choice can be difficult: Many factors influence the question of which form of insurance is best for you. Below you will find a comparison of the most important information on statutory and private health insurance.
The German healthcare system is made up of various players and institutions. These include the statutory health insurance funds and private health insurers. Their task is to protect insured persons from financial risks by reimbursing health care costs.
In general, health insurance is compulsory in Germany for both inpatient and outpatient treatment, which means that all residents must have health insurance.
The fact that there are two types of health insurance in Germany does not mean that everyone is allowed to choose between them.
Only certain groups of people have the option of taking out private health insurance (or being voluntarily registered with a statutory health insurance fund). Everyone else is automatically insured under the statutory health insurance system.
The groups of people who can choose between voluntary membership of a statutory health insurance fund and private health insurance are
For all other groups of people, membership of a statutory health insurance fund is automatic.
Both statutory health insurers and private health insurers are responsible for covering all or part of the costs of health care so that the insured person does not have to pay out of their own pocket.
However, there are important differences in terms of both the insurance costs and the scope of services that are covered.
The cost of membership in a statutory health insurance fund is determined by law and depends on your gross income.
Every person with statutory health insurance pays between 15 and 17 percent of their gross income each month. The contribution is calculated as follows: The general contribution rate (with sickness benefit) is 14.6 percent. The reduced contribution rate (without sickness benefit) is 14.0%. In addition, there is the supplementary contribution, which is between 0.8 and 1.9 percent depending on the health insurance fund.
However, there is a limit for calculating your GKV contributions. Above the income threshold - 62,100 euros per year (as of 2024) - your gross income is not used to calculate your statutory health insurance costs. The maximum contribution for statutory health insurance (calculated with regard to the average additional contribution) is therefore €1,019.48 per month (as of 2024).
Private health insurance companies calculate their costs according to private-sector principles. This means that prices are proportional to the scope of benefits of the tariff, your age and your state of health when you join private health insurance. A health check is therefore necessary to join a private health insurance company. This is how the price is determined when you join private health insurance.
Depending on your profession or group of people, you may be entitled to a subsidy or allowance for your statutory or private health insurance - for example from your employer or employer.
It is important to inform yourself about this in order to find out which form of insurance suits your circumstances.
If you want to take out private health insurance, you must answer health questions and, if necessary, undergo a health check.
All questions must be answered carefully and completely - because it depends on whether the insurer has to provide benefits later. If the risk of illness is too high, your application for private health insurance may be rejected. In this case, however, you have the option of insuring yourself with statutory health insurance and taking out supplementary health insurance. The health questions vary depending on the insurance company. However, you can expect questions on the following topics
It is important to know that the costs of private health insurance increase proportionally with increasing age. As a result, the cost of private health insurance increases in the retirement years. However, there are at least two solutions to this problem. The most sensible solution is to choose a private health insurance plan with old-age provisions at an early stage. If you take out private health insurance when you are young and healthy, the costs are relatively low. A plan with old-age provisions allows you to invest a little more in the first few years of your private health insurance so that the plan doesn't become too expensive later on.
Another option for saving on your private health insurance tariff is private health insurance with a deductible. In this case, you agree with the insurer that you will pay a certain proportion of the health care costs incurred.
As in the case of costs, the scope of benefits of the two types of insurance is similar. SHI benefits are regulated by law. The variations between the health insurance companies are minimal and are limited to minor additional benefits. The mandatory benefits of a statutory health insurance fund include, for example
Depending on the statutory health insurance company, you may find additional benefits on offer, such as cover for some early diagnostic examinations or savings rates.
The scope of benefits offered by private health insurance companies is completely different. Their benefits are not defined by the German Social Code, but are agreed in the contract between the policyholder and the insurance company. Important benefits that a private health insurance plan should include in order to guarantee better insurance cover than statutory health insurance are, for example
You can also add other modules to your plan, which may not be essential, but are very useful for complete insurance cover:
The benefits provided by statutory health insurance depend on the legislator. This means that there may be changes to the scope of benefits covered by your health insurance. In contrast, the insured benefits of private health insurance are contractually agreed and may not be changed as long as the contract is not amended. This offers you more security when it comes to your health insurance cover.
The differences between statutory health insurance and private health insurance are not limited to the tariff costs or the scope of benefits covered. Other important differences are
If you know the differences between private health insurance and statutory health insurance, you may have considered switching to one or the other, or even to your private insurance provider. However, you need to consider a few things and check whether you meet all the necessary requirements. Three cases in particular are tricky:
If you would like to get a general overview of the advantages and disadvantages of statutory and private health insurance in comparison, we have put together a table of the most important differences for you here:
If you compare the insurance products offered by statutory health insurers and private health insurers, it becomes clear: The scope of benefits offered by private health insurance is generally more attractive. However, this comes with the disadvantage that private health insurance is only a sensible option from a cost perspective under certain circumstances. SHI contributions are income-dependent, while private health insurance costs depend on various factors: benefits booked, age, health status and occupation at the time of taking out private health insurance.
If you take out private health insurance at a young age or secure it in advance with an optional tariff or qualifying insurance, you can get cheaper rates. However, you must be aware that membership of a private health insurance scheme is only available to certain groups of people. However, if the requirements are met, private health insurance is usually a sensible health insurance option.
Occupational disability insurance is an important building block for your financial security. With a subsequent insurance guarantee and dynamics, you can react flexibly to changes in your life and protect yourself against inflation. Here you can find out all about its features and benefits so that you are perfectly prepared for an emergency and can go about your life with peace of mind.
Life presents us all with unforeseeable risks and dangers. Unfortunately, it is always possible to fall seriously ill or have an accident. In such cases, it is usually not possible to continue working, which can lead to a loss of income and financial difficulties. Occupational disability insurance (BUV) protects you against this. If you take out disability insurance, you pay premiums for as long as you work and in return receive a pension specified in the contract as soon as you become unable to work.
Because occupational disability insurance usually runs for a very long time, your life circumstances are likely to change during the term. The long term also brings with it the possibility of inflation. In order to be able to react to these variables, occupational disability insurance policies offer dynamics and subsequent insurance guarantees.
The subsequent insurance guarantee is a clause in an occupational disability contract. It is used to increase the premiums and benefits of your occupational disability insurance in the event of changes in your life. The biggest advantage of this is that the adjustment is possible without a health check. So if, for example, you fall ill between taking out the contract and using the supplementary insurance guarantee, you can still adjust your occupational disability insurance.
There are two different types of subsequent insurance guarantee: the event-related and the non-occasion-related subsequent insurance guarantee.
The non-occasion-related subsequent insurance guarantee means that you can increase your premiums and therefore also the amount of your pension by leaps and bounds under the conditions specified in the contract. This is usually subject to a certain period of time and a limit on the amount of the adjustment.
The event-related subsequent insurance guarantee means that you can increase your premiums and benefits on certain occasions specified in the contract. These are mainly events that lead to a change in your standard of living and you therefore have an interest in adjusting your pension. It is important to note that an adjustment must be made within a contractually stipulated period as soon as an event occurs. Furthermore, even with this form of subsequent insurance guarantee, the premiums and pension cannot be increased at will, but only up to a certain amount that varies depending on the contract. Some typical reasons are as follows:
Regardless of the form of the supplementary insurance guarantee, when using the entitlement to an increase in occupational disability insurance, the existing contract is not changed, but an additional contract is set up. In most cases, the pension cannot be increased indefinitely, but only up to a certain percentage of your gross salary.
Dynamics is another aspect of an occupational disability insurance contract. Its main purpose is to compensate for inflation, which usually occurs during the long term of a disability insurance policy. Inflation can result in a pension maintaining the same amount, but with less and less purchasing power over time. Purchasing power indicates how much you can buy with your money.
Here, too, there are two types: dynamic contributions and dynamic benefits.
The contribution dynamic refers to a process in which the contributions to your pension increase by a certain percentage each year. This is usually between one and three percent. As you pay more contributions, the amount of your pension also increases. Accepting the increased contributions is not an obligation, but a right. However, the number of consecutive contribution increases you can suspend is limited. In most cases, the limit is two years. If you suspend the premium increase after this period, you will no longer be able to use the premium dynamic.
A special form of premium dynamics is that the increase in the pension is based on the loss of purchasing power. In this case, the insurance company reviews purchasing power annually, for example, and adjusts your contributions accordingly.
There is a special feature to note with dynamic contributions: Your benefits in the event of occupational disability do not increase by the same percentage as your premiums. This is because the existing contract is not changed, but an additional contract is set up each time. Because you are at least one year older with each increase, your basic premium is also slightly higher, although the basic benefits remain the same apart from the premium dynamic. So you have additional costs because you are older and because you use the dynamic. However, your benefits only increase due to the dynamic.
The benefit dynamic only comes into effect if you have already become incapacitated for work. If a benefit dynamic is agreed when the contract is concluded, your premiums will be higher from the outset. In contrast to the premium dynamic, they do not increase annually. In return for paying higher premiums from the outset, your pension increases by a certain percentage each year as soon as you become incapacitated for work.
Now that you have an overview of the supplementary insurance guarantee, the dynamic and their different forms, you will find a summary of the similarities and differences below.
The terms and conditions of the subsequent insurance are determined at the start of the contract. However, you yourself are responsible for using them within a certain period of time after the occasion has arisen.
When taking out occupational disability insurance, you can usually decide to include dynamics and a subsequent insurance guarantee in the contract. There are a few factors and tips that you should consider when choosing the right insurance for you:
You should consider the following aspects with regard to the dynamic:
Occupational disability insurance is an important building block for safeguarding your standard of living in the event of occupational disability. With a subsequent insurance guarantee and a premium or benefit dynamic, you can increase the benefits of your disability insurance after taking out the policy without having to undergo a new health check. When deciding on an occupational disability insurance policy with a subsequent insurance guarantee and dynamic, you should pay particular attention to factors relating to the conditions of the premium increase and the associated increase in benefits. This way, you can protect yourself in the event of an emergency and don't have to worry about changes in purchasing power due to inflation or a rigid contract that no longer fits your life situation at some point.
In a world characterized by constant change and uncertainty, the need for reliable financial security is becoming increasingly clear. Concerns about poverty in old age in particular are causing many people to think about their own retirement provision. Various insurance providers are now advertising a combined product comprising occupational disability insurance and private pension provision, i.e. supplementary occupational disability insurance. But to what extent can occupational disability insurance actually help with retirement provision? Below we explain everything you need to know about the combination of occupational disability insurance and financial security for retirement!
Every working person should have occupational disability insurance because it protects you against the financial consequences of occupational disability. If you are permanently unable to carry out your current job due to an accident or illness, the insurance company will pay you a monthly disability pension. The pension is intended to compensate for the loss of your income.
A private pension is also a sensible investment for everyone. The statutory pension is generally not sufficient to maintain your standard of living after retirement. A sensible occupational disability insurance policy is therefore at least as important as retirement provision.
You may now be thinking: why not simply combine the two options? Some insurance companies had the same idea and invented supplementary disability insurance (BUZ). This allows you to make provisions for your retirement and at the same time protect yourself in the event of occupational disability. BUZ is not an independent insurance policy. Instead, as the name suggests, it is a supplement to a private pension plan. That sounds tempting, but an occupational disability insurance linked to private pension provision is not the best choice for everyone. We explain the exact reasons for this below.
Of course, the financial aspect also plays a decisive role in the decision for or against occupational disability insurance with retirement provision. The following factors are important when calculating the premium for occupational disability insurance:
In principle, occupational disability insurance is one of the more expensive types of insurance. With Allianz insurance, a 30-year-old office clerk in good health pays around 75 euros per month for a disability pension of 1500 euros. In addition, part of the income is paid into a private pension plan. Supplementary disability insurance is therefore quite expensive. You also need to bear in mind that, unlike with stand-alone policies, you can only reduce the premiums for both benefits with a combined product. Such insurance therefore only makes sense if you have a stable long-term income.
If you want to combine your retirement provision with occupational disability cover, you should first think about your individual needs. Think carefully about whether your life situation will change significantly in the next few years. The security of your income also plays a role. To select an occupational disability insurance policy that is tailored to your needs, you should definitely consult an insurance expert. There you can also find out whether a combination of disability insurance and retirement provision is even an option for you.
The combination of occupational disability insurance and old-age provision offers a number of advantages:
Despite the advantages, you should also consider the disadvantages:
Before you decide on a type of occupational disability insurance and private pension provision, you should definitely speak to an expert. Insurance advisors can provide you with expert advice based on many years of experience and help you make a decision that is tailored to your individual life situation.
Private pension provision and occupational disability insurance are essential for everyone. They enable you to maintain your standard of living in retirement or during a prolonged illness by paying a pension. Combining both policies can be a sensible option, but it also has some disadvantages. Due to the high costs and low flexibility, supplementary disability insurance is mainly suitable for high earners with a stable long-term income. To make an informed decision that provides comprehensive cover for your standard of living, you should definitely seek advice from an insurance expert.
