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.
No matter what age you are, if you need care and are dependent on the help of others in everyday life, you will often incur high care costs. In this case, you are covered by statutory long-term care insurance: it pays part of the costs incurred for care and support. In this article, we show you how statutory long-term care insurance works and how you can provide further financial protection in the event of needing long-term care.
Statutory long-term care insurance is compulsory insurance. If you live permanently in Germany and are a member of private or statutory health insurance, you are required to take out insurance. These and other important regulations on long-term care insurance are set out in the Eleventh German Social Code (SGB XI). The purpose of long-term care insurance is to provide its members with financial support in the event of a need for long-term care and to enable them to lead a self-determined life. In order to fulfill this task, long-term care insurance covers part of the costs incurred for household help or home care, for example. You bear the part of the costs not covered by the insurance yourself. Private supplementary long-term care insurance protects you from this financial burden.
Health and long-term care insurance benefits come from a single source. In addition, long-term care insurance follows on from health insurance. If you have statutory health insurance, this means that you are automatically covered by your health insurance: You are automatically insured for long-term care through your health insurance. The situation is different for privately insured persons. You must take out private compulsory long-term care insurance.
You will receive long-term care insurance benefits if you submit a corresponding application to your health insurance provider. The prerequisite for benefits is a need for long-term care. “Need for care” means that your abilities and independence are impaired for health reasons to such an extent that you are dependent on outside help for at least six months. If this is the case, the long-term care insurance fund will cover part of the costs incurred for the necessary everyday assistance or care, regardless of your age.
If you are dependent on care temporarily or for a period of less than six months, the long-term care insurance fund will not provide any benefits. In this case, your health insurance fund is responsible and will cover the costs incurred.
Depending on your needs, your care insurance will cover part of the costs for outpatient or inpatient care. If a family member or a person close to you takes care of you, the care insurance fund will pay them a care allowance. The benefits (e.g. the assumption of costs for outpatient care and the care allowance) can be combined. The amount of costs covered by the care insurance fund depends on how severely you are impaired in your abilities and independence. The severity of the impairment is indicated by the so-called care degree.
If you apply for care insurance benefits, your application must be reviewed and the degree of your need for care determined. Your classification and assignment to a care degree are necessary so that the statutory long-term care insurance can determine how severely your independence is restricted and what benefits it will provide.
In order to determine which care level applies in a specific case, an assessment is carried out by a specialist. The assessment is carried out by doctors from the Medical Service (MD for short).
During the assessment to classify the level of care, the assessor pays attention to the following points: The amount of costs covered by the care insurance fund depends on how severely you are impaired in your abilities and independence. The severity of the impairment is indicated by the so-called care level.
Mental and communicative abilities - Can the person being assessed orient themselves in everyday life, make decisions, hold conversations and communicate their needs?
During the care assessment, the assessor evaluates the above points. Depending on how much support the person being assessed needs, they will award a score. The total number of points shows the care insurance company which care level the person being assessed is assigned to.
The number of points awarded during the care assessment can be assigned to one of five care levels. The level of care indicates how much help the person concerned needs and what benefits are provided by the statutory long-term care insurance:
People in need of care should have the opportunity to lead their lives as independently as possible. People in need of care can therefore decide for themselves whether they want to be cared for by professionals or relatives. In both cases, long-term care insurance provides benefits to make the desired form of care financially possible.
However, statutory care insurance does not usually cover all care costs. Those in need of care or their relatives must bear the costs incurred over and above the care insurance allowance themselves. The level of care insurance benefits depends on the type of care required and is set out in the German Social Code (SGB XI).
If you are in need of care and are being cared for on an outpatient basis or in your own home, statutory long-term care insurance will cover part of the care costs incurred. How much the care insurance fund pays depends on your care level. It also depends on whether the care is provided by a trusted person or a professional care service.
If a professional care service provides everyday assistance, the care insurance fund will transfer its share of the costs (so-called benefits in kind) directly to them. If a person of trust provides care, they receive a monthly care allowance. The monthly care allowance is lower than the benefits in kind. However, it is not earmarked for a specific purpose and the carer does not have to explain what they have spent it on.
Benefits for complete care in a nursing home are only provided by the statutory long-term care insurance from care level 2. Your co-payment towards the actual care costs is transferred directly to the care facility. You will have to finance the costs that exceed the statutory care insurance co-payment yourself. The amount of your own contribution varies from region to region and from facility to facility.
Statutory long-term care insurance is financed by the contributions of its members. For this reason, you have to pay a monthly insurance contribution. The amount of the contribution depends on whether you have children or not:
If you are in need of care, statutory long-term care insurance will cover part of the costs incurred for your support and care. This means that you or your family must finance the part of the costs not covered by statutory care insurance yourself.
Depending on the care reform, this can range from several hundred to thousands of euros per month. If you or your relatives do not have the necessary reserves, the need for care will become a major financial and emotional burden.
Your opportunity to solve the care dilemma: Private supplementary long-term care insurance, which extends the protection provided by statutory long-term care insurance. This means that you can take out private supplementary insurance to provide extra protection in the event of needing long-term care. Once taken out, private supplementary insurance covers the care costs that are not covered by statutory long-term care insurance. This protects you and your loved ones from financial risks.
If you would like to take out private supplementary long-term care insurance, you can choose between the following options:
Like health insurance, statutory long-term care insurance is compulsory in Germany. You receive statutory health and long-term care insurance from a single source. This means that you are also insured for long-term care through your statutory health insurer. The contributions you pay for your long-term care insurance are based on your gross income.
In return for your contributions, you will receive a cost subsidy from the statutory long-term care insurance if you need to finance long-term care services. Please note, however, that statutory long-term care insurance only covers part of the care costs. To avoid having to bear the remaining costs yourself, you can take out private supplementary long-term care insurance.
If you cause damage to another person, they are entitled to compensation. In private cases, this is covered by your private liability insurance. However, if this happens as part of your professional activity as a self-employed person or freelancer, this does not apply. This is why it is all the more important for you to take out professional liability insurance. We have summarized for you here when this makes sense for you and what advantages it offers you.
If you as an employee make mistakes in the course of your work, this can have serious consequences for a company. However, as an employee, you do not normally have to fear any consequences, as companies are covered by public liability insurance. However, the situation is different for freelancers and the self-employed: They assume the full risk themselves when carrying out their professional activities and are liable with their private assets in the event of an emergency. But this risk can be covered by taking out professional indemnity insurance.
Regardless of whether personal injury, property damage or financial loss occurs - you can insure any damage you cause in the course of your professional work with professional liability insurance. In practice, this can be, for example, payment of compensation to the opposing party or costs for damage repair, which are covered by the insurer.
Especially when it comes to serious personal injury, claims in the millions are not uncommon. If you are not covered by professional liability insurance, you will have to pay these costs out of your own pocket - in the worst case scenario, this could jeopardize your entire livelihood. We therefore recommend that you make provisions in good time and take out suitable professional liability insurance. For some industries, it is even mandatory to take out this policy.
As an employee, you do not need professional indemnity insurance: in this case, you are covered by your employer. However, if you run a business or are self-employed, you should take out such insurance. Although there are a few fields of activity in which you are highly unlikely to need professional liability insurance, there are also some particularly risky sectors.
For example, if you have a high level of responsibility or make far-reaching decisions with health or financial risks, it is advisable to consider taking out professional liability insurance. In some sectors, you have no other choice - this insurance is even mandatory for doctors.
It makes sense to take out professional indemnity insurance for the following professions in particular:
Based on this list, you can see that there are many different industries in which there is a high risk. While IT service providers or website operators, for example, can expect problems due to a failure to comply with legal requirements, the consequences for doctors or lawyers are much more serious: people's lives or very large sums of money are often at stake here.
For this reason, it is important that you choose professional liability insurance that suits your individual professional situation and provides you with sufficient cover.
These liability risks are decisive for professional liability insurance
If you are a service provider or work in an advisory capacity, you have a high level of responsibility. Depending on the industry you work in, mistakes can result in financial loss, property damage or personal injury, which can result in large sums of money.
For example, if you are a surgeon and you make a mistake during an operation, the patient can demand not only compensation for damages but also compensation for pain and suffering. If you are a management consultant and provide incorrect advice to a company, which results in it losing millions, you can be held liable. If you are proven to have made a mistake, you will bear the responsibility and therefore also the costs. Even supposedly minor oversights such as the infringement of image rights on websites can have expensive consequences.
In principle, professional indemnity insurance can protect you against the following liability risks:
Regardless of whether you work as a consultant or doctor - with professional indemnity insurance, you are comprehensively covered should someone ever demand financial compensation from you.
But even as a freelance journalist or IT consultant, you should think about taking out professional liability insurance. For just a small monthly amount, you can protect yourself in the event of an emergency and against potentially high financial claims.
The most important advantages and disadvantages of professional liability insurance
Taking out professional liability insurance should always be carefully considered. Although the premiums are comparatively low, you should ask yourself in advance whether such a policy provides you personally with sufficient cover. You should therefore be aware of the most important advantages and disadvantages of professional liability insurance.
Tip: Note the claim for performance in the contract. If, for example, as a service provider, you have received an order that you are supposed to fulfill through your professional activity and do not complete it, the claim for fulfillment is deemed not to have been fulfilled. A professional liability policy often does not cover the claim for performance and you will have to cover any resulting damage yourself. When taking out a contract for professional liability insurance, make sure that the claim for performance is also insured. Although this usually costs a small surcharge, it offers you more comprehensive protection.
You can fully claim the costs of professional liability insurance as special expenses in your tax return. If you work in a position with a high level of responsibility, it is highly recommended that you take out such a policy, as you can take out comprehensive cover for a comparatively low cost.
The most important difference between professional indemnity and public liability can be explained as follows:
This clearly shows why you don't need to take out your own professional indemnity insurance as an employee - but you shouldn't do without it as a self-employed person or freelancer. As an employee, you are covered by your employer, otherwise you should take out your own cover.
Tip: Additional cover is worthwhile in many cases. If you are employed, you do not normally need your own professional liability insurance - you are covered by your employer. However, if you would like more comprehensive cover, you can often add an optional module to your liability insurance that covers professional activities. The best way to find out about this is to contact the relevant insurance company directly.
Some professional groups are required to take out professional liability insurance. This requirement can either be stipulated by law or laid down in the respective professional regulations.
This obligation applies to the following professional groups, among others:
Please note: The name of this policy varies depending on the profession. Professional liability insurance can often be referred to differently. For example, lawyers are often referred to as lawyers' liability insurance, while pharmacists are often referred to as pharmacists' liability insurance.
Although these insurances are basically based on the same principle, the individual benefits and sums insured are often adapted to the individual requirements of the respective profession.
Which professional indemnity insurance is right for your personal professional situation depends above all on the industry you work in and whether you are employed, freelance or self-employed.
It is therefore all the more important that the insurance cover matches your individual requirements. If you need professional indemnity insurance as a lawyer, you will need a higher sum insured than, for example, a freelance journalist, as the amounts of damage in this sector are often significantly higher.
If you need advice on this, it can be helpful to contact an experienced insurance advisor who can help you find the right tariff.
The cost of professional indemnity insurance depends on various factors. Among other things, it depends on your professional group and your personal activities. The differences can vary from profession to profession.
For example, if you work as a service provider, the amount of your turnover plays a major role. If you are a doctor, on the other hand, you run a high risk of personal injury and pay correspondingly higher premiums.
As a rule, the insurer will therefore carry out a risk assessment before concluding the contract. This is necessary in order to be able to assess the risk of your professional activity more accurately.
This means that the higher your professional risk, the more expensive your monthly insurance premiums will be. The cheapest rates for professional indemnity insurance start at just a few euros per month. For very high-risk professions, however, the policy can cost more than 100 euros per month.
Our tip: Save on premium costs with a deductible. If you are prepared to agree a deductible in your policy, this will normally reduce your premium. This is because you will then be responsible for any damage caused up to the amount of the deductible - the insurer will cover all costs above this amount.
If you are a freelancer or self-employed person, you should not underestimate the consequences of a small mistake: It can quickly result in high costs that you have to pay out of your own pocket without suitable cover. As you are not covered by your employer's public liability insurance like an employee, you should take out suitable insurance yourself in this case.
Unit-linked life insurance consists of term life insurance and a fund investment. What does that mean? The purpose of term life insurance is to protect the life of the policyholder: In the event of death, termination of the contract or at the contractually agreed end of the term, a certain sum or annuity is paid out to the policyholder or their dependents, depending on the insurance variant.
With traditional life insurance, on the other hand, your money is invested in fixed-interest products that are safe but only yield low returns. The profit is very often too small to protect your money from the increase in inflation over the years.
Unit-linked life insurance gets its name because the money you pay in for life insurance is invested in funds. The return you can achieve with the insurance depends on the stock markets and the price of the funds. This creates both the possibility of higher profits and a financial risk.
Unit-linked life insurance works in the same way as traditional life insurance. However, the tariff is linked to a fund investment. The money you pay in is therefore invested in funds. What this means for you: If you take out unit-linked life insurance, you should find out in advance about the fund selection offered to you depending on the insurer.
The following types of fund are usually offered as part of the insurance:
Whether you opt for high-risk or safer funds depends on you. It is advisable to seek detailed advice in this regard.
Once you have agreed the investment funds with the provider, the savings phase begins. This means that you pay an insurance premium on a monthly or annual basis. The amount you pay is variable: it depends on the tariff, the contractual agreements and your state of health when you take out the policy. You can also increase insurance benefits by making additional payments during the savings phase.
When choosing a plan, it is also important to consider whether and how your plan allows you to switch between funds over time. Look for a tariff with a switching option. After all, the potential returns of your tariff depend on the funds in which you have invested your money.
In the event of a switch, there are two options:
The best way to find out which option is best for your capital is to talk to an advisor. In any case, it is important for a unit-linked life insurance policy that you obtain detailed and continuous information about which funds your capital is invested in and what they are worth. Only then it is worth taking out the policy, as the value of your life insurance corresponds to the value of the investment funds.
Our advice: Most unit-linked life insurance policies lack a guaranteed interest rate, so market conditions determine your policy's value. Some tariffs offer maximum level guarantees, paying the highest market value reached. You can also opt for guaranteed funds, though this incurs higher costs.
If the insured event occurs or the agreed insurance period has expired, the sum insured is paid out. How this actually takes place varies depending on the tariff and contract. As a rule, however, the following two options are available:
As the unit-linked variant of life insurance is linked to the market value of the selected funds, it is important to keep an eye on this and the performance of the stock markets if you have opted for this type of retirement provision. The reason for this is that if the markets are not in a good phase at the end of the contract, you can use the extension option (if your plan provides for this). This allows you to extend the term of your contract and optimize your return.
If you are no longer satisfied with your unit-linked life insurance or need to access your invested capital, you can cancel the policy. However, you should carefully consider whether this option really makes sense for you and only use it if there is no other option. Early termination usually results in a financial loss for you. Due to the insurance costs, you will often receive less than the premiums you have paid for your policy when you cancel.
The money you get back on termination is the so-called surrender value of your insurance. This is related to the market value of the investment funds in which your money is invested. Early termination is therefore not advisable in the first few years after taking out insurance: In this case, the costs will certainly exceed the gains.
If you find yourself in financial difficulties, you can lend on your unit-linked life insurance. Some insurance companies as well as life insurance buyers offer mortgage lending. When you take out a loan against your life insurance policy, it is pledged as collateral for a loan. However, the costs of the loan are usually higher than the return on the insurance. For this reason, mortgaging is usually cost-ineffective.
Tax aspects are an important criterion when choosing your retirement provision. What about unit-linked life insurance? Are the premiums paid in tax-deductible? Are the insurance benefits taxable after the payment-in phase?
As far as the tax deductibility of your insurance premiums is concerned, you must note the following. If your insurance contract was concluded before January 1, 2005, the monthly or annual insurance premiums are considered pension expenses. They are therefore tax-deductible. For contracts concluded after January 1, 2005, the tax advantage does not apply.
During the payout phase, you must bear in mind that profits from capital investments such as funds are generally taxable. However, even in this case, contracts that were concluded before January 1, 2005 enjoy some advantages. In this case, there is no tax liability if three conditions are met:
If you are thinking about using unit-linked life insurance to secure your retirement provision and protect your loved ones from financial risks, you should be aware of the advantages and disadvantages of unit-linked life insurance.
Advantages
Disadvantages
Unit-linked life insurance is more worthwhile than traditional life insurance. However, this assumes that you can bear the costs. If you can no longer do so, you have the option of terminating the policy early. However, this entails losses: your invested capital is usually lost in the event of premature termination.
Unit-linked life insurance also makes sense because it combines retirement provision with fund investments and therefore generates more profits than traditional life insurance. However, this requires you to be familiar with the stock market and stay informed about the performance of your funds.
For these reasons, unit-linked life insurance is only worthwhile for those who want to invest money for the long term and are already familiar with the topic of investments. If this does not apply to you, unit-linked life insurance is not advisable. In this case, alternative forms of old-age provision are recommended.
Unit-linked life insurance is a pension product that consists of a savings investment in investment funds. At the end of the contract or in the event of death, the insurance benefit is paid out and the sum insured is paid out either as a lump sum or as an annuity.
Unlike traditional life insurance, unit-linked life insurance offers the possibility of higher returns and financial benefits. However, you will only benefit from this if you keep abreast of developments on the stock markets in order to monitor the status of your policy and your invested capital. This is necessary because otherwise there is a risk of financial losses.
Unit-linked life insurance is therefore only recommended for those who are prepared to take a certain amount of risk.
Exploring the world, making unforgettable memories - these are the things that travel dreams are made of. If you are planning an exciting trip abroad, you should definitely think about whether international health insurance makes sense for you. Because despite relaxation and idyll, unexpected illnesses or accidents can happen on vacation. That's why international health insurance should be as much a part of every suitcase as a toothbrush. We'll tell you everything you need to know about it below!
Imagine you're enjoying your dream vacation, but suddenly you fall ill or even have an accident. Medical care abroad can lead to considerable costs. Although your statutory health insurance also covers medically necessary services in the EU, you are not covered for trips outside the EU. However, statutory health insurance does not offer comprehensive health protection in the EU either, as it only covers benefits that apply to those with statutory health insurance in the country you are visiting. This is where health insurance for abroad comes into play. It protects you against unexpected costs for medical treatment, hospital stays and medication incurred when traveling outside Germany. With such insurance cover, you don't have to worry about high bills and can concentrate fully on your recovery. Plus, traveling is more relaxed when you know you're covered in an emergency!
In principle, travel insurance covers all costs for medically necessary treatment abroad due to unexpected illnesses or accidents. The benefits may include
The benefits vary in detail from insurance policy to insurance policy. You should pay particular attention to cover in the event of a COVID-19 infection, as this is not offered by every insurer. Medication and treatments that are foreseeable before the trip are not covered by international health insurance. Preventive medical check-ups and vaccinations are also not covered by travel health insurance. You should also note that some insurance policies do not cover you if the Foreign Office has issued a travel warning for your vacation destination.
International health insurance is worthwhile as soon as you are planning a vacation abroad. Such insurance cover is particularly useful when traveling to countries where health costs are very high. This applies to the USA and Canada, for example. Adventure vacations also make travel insurance almost indispensable. If you are planning activities such as mountaineering, skiing or diving, there is a higher risk of injury. For longer stays abroad, you should look into international health insurance. This offers you full insurance cover abroad and also covers vaccinations and check-ups.
For a seven-day flight just for you, you can take out one-off insurance for as little as five euros. If you want to insure several trips within a year, you can book annual cover. This is available for as little as ten euros a year. Family cover for one year is available from as little as 20 euros, and you can take out single cover from ten euros. However, prices vary greatly depending on the provider and scope of services, but as you can see, the prices are quite low. In comparison, a one-day hospital stay in the USA can cost as little as 6,000 euros, while repatriation to Germany costs around 90,000 euros.
Finding the right international health insurance may seem overwhelming at first, but by considering a few important factors, you can ensure that you find the right insurance for your trip. These include:
Finding the right insurance may take some time, but the certainty of being adequately protected during your trip is priceless.
If you are unsure whether and which international health insurance is right for you, you can get advice from experts. Insurance brokers or independent insurance advisors can help you choose travel insurance. For such a consultation, it makes sense that you are already aware of your needs and your travel destination. This way, the search for the right insurance can be tailored to your individual circumstances.
Exploring the world and creating new memories is undoubtedly incredibly exciting. But in the midst of these adventures, you should never lose sight of your health. The thought of unexpected illness or accidents may be uncomfortable, but with international health insurance tailored to your needs, you can put your worries to rest. From medical care in foreign countries to repatriation to Germany, health insurance for stays abroad offers you a way to go on vacation without worry. Whether you're going on a city break, embarking on an exciting adventure or simply relaxing on the beach, international health insurance should be on your travel list!
If you have to assert your rights in court or with the help of a lawyer, your legal protection insurance will cover the costs incurred. This means you can face legal disputes with your landlord, employer or authorities with greater peace of mind. Here we show you what costs legal protection insurance covers and whether it is worthwhile for you.
Your legal expenses insurance covers the costs of legal proceedings in and out of court. This means that it covers your lawyer's fees if you are represented in court or out of court. It also covers the costs incurred in connection with legal proceedings and pays your costs if you lose in court.
Please bear this in mind: Your insurance does not cover all legal costs incurred. In fact, costs will only be covered in the areas of law covered by your tariff.
If there is a dispute in court, the costs are high. If you lose in court, for example in connection with an action for eviction due to personal use, you will incur court and lawyer's fees of around 4,000 euros (depending on the amount in dispute). If you lose the case, you will have to bear these costs yourself - every legal dispute therefore means a certain cost risk for you. Legal protection insurance helps you to exercise your rights with peace of mind.
In the insured areas of law, the insurance covers the necessary legal costs as well as
The costs incurred will be borne by the insurance company in full or up to an agreed maximum amount. If a maximum sum has been agreed, this is often between 3,000 and 6,000 euros per year or per claim. Most insurers also offer you the option of getting advice from legal experts over the phone. The hotlines are usually available around the clock.
If you take out legal protection insurance, you are not only securing yourself competent legal advice. You also ensure that you can enforce your rights in court without having to worry about the financial risks of a lawsuit.
Your legal expenses insurance covers costs relating to legal disputes in the areas of law covered by your insurance tariff. The most important areas for which you can take out insurance are Professional legal protection, private legal protection and traffic legal protection.
Whether legal protection insurance is worthwhile for you depends on your individual situation. Therefore, ask yourself whether and in which areas of your life you could face legal trouble. Do you drive a car every day or are you threatened with legal disputes around your workplace? Then it may make sense to take out traffic or employment legal protection insurance. If, on the other hand, you don't own a car and have a secure job and a fair employer, insurance cover is less worthwhile.
How sensible legal protection insurance is for you also depends on how likely you think it is that you will need a lawyer or have to go to court. The more likely this is, the more urgently you need legal protection insurance.
It also makes sense for you to take out insurance if you want to protect yourself from the high costs of legal disputes regardless of these considerations. This way, you are sure to be able to enforce your rights against financially strong third parties if necessary.
Your legal expenses insurance covers the costs of contractually agreed disputes. Nevertheless, it is not an all-round carefree package in connection with the insured disputes. If the conflict that triggered the costs incurred already existed before the insurance contract was concluded, the insurer will not pay.
You also have to wait around three months before you can claim insurance benefits. The waiting period is intended to protect the insurer from you only taking out the insurance once costs and legal disputes have become apparent. Only in connection with traffic accidents will your legal expenses insurance cover you without a waiting period.
Please note that there are cases in which legal expenses insurance does not pay. These are
The cases in which insurance cover is excluded can vary from insurer to insurer. So take a close look at the insurance conditions and consider which offer suits you best. My team and I will be happy to help you compare different legal protection offers.
The cost of your legal protection insurance depends on which insurance package you choose. You can get traffic legal protection insurance for around 70 euros per year. If you opt for legal protection insurance that covers several areas (professional, private, traffic and criminal legal protection), the insurance will cost at least 200 euros per year. The rule is: the more legal areas the insurance covers, the more expensive it is.
Once you have decided to take out legal expenses insurance, it is important to compare the tariffs of several providers. There is no such thing as a tariff that suits all policyholders. When making your choice, pay attention to the tariff details that are important to you personally. However, don't opt for the first provider that meets your tariff requirements - pay attention to the following points:
If you decide not to take out legal expenses insurance, you are not without protection in connection with many legal disputes. Although the alternatives do not offer the comprehensive protection of legal expenses insurance, they are a real relief in an emergency:
If legal disputes arise, they can be costly - with lawyer, court and expert costs. Legal expenses insurance offers reliable protection against high costs. In selected areas of law, it covers all costs incurred in and out of court. Whether legal protection insurance is worthwhile for you depends on your personal circumstances. If you are a professional and actively participate in road traffic and public life, you should consider taking out insurance.
For many people, a secure financial foundation in retirement is an important factor in planning for the future. Especially in times of economic uncertainty, the need for comprehensive retirement provision is becoming increasingly clear. One way of providing for a well-earned retirement is the company pension. This concept plays a key role in the German pension system and offers you additional retirement provision for later years.
The company pension, also known as the occupational pension scheme, is an option for additional retirement provision offered by employers to their employees. It is used to top up the statutory pension and thus secure the standard of living you are used to in retirement. The company pension is organized by your employer. It is subsidized by the state, which means you can benefit from tax advantages. The company pension is a generic term for various pension models. The options for a company pension are
The most commonly used form is direct insurance. The company pension offers advantages for both you as an employee and your employer. You benefit from an additional source of income in retirement, which helps you to maintain your standard of living. Your employer can use the company pension as a benefit to strengthen employee loyalty and attract new employees.
Setting up a company pension is easy for you:
A company pension offers you various advantages:
Occupational and private pension plans have a few differences. Probably the biggest difference is that you have to organize your private pension yourself, while your employer takes care of your occupational pension. In addition, you do not benefit from an employer subsidy with a private pension, but pay the contributions yourself. One advantage of private pension provision is that you do not have to pay contributions to the statutory health insurance fund later on.
With a company pension, you benefit from a state subsidy. Here are the most important aspects you need to know about company pension contributions:
Bear in mind, however, that deferred compensation reduces your entitlement to a statutory pension. This is because the calculation of your pension entitlement is based on your gross income that remains after the deduction of contributions to the company pension scheme. As the deferred compensation reduces your gross income, you pay lower contributions to the statutory pension insurance, which in turn reduces your statutory pension.
The company pension scheme primarily applies to employees. However, if you are self-employed or work as a freelancer for a company on a permanent basis, you can also benefit from a company pension or continue an existing contract. However, you must observe certain requirements. That's why you should definitely seek advice from an expert.
At a time of increasing economic uncertainty, the need for comprehensive retirement provision is becoming ever more important. The company pension is proving to be an important option in the German pension system that can offer you financial security in retirement. It enables you to maintain your accustomed standard of living in old age and protect you from financial bottlenecks. The company pension is therefore a sensible supplement to the statutory pension. To avoid a pension gap in old age, you should consider occupational pension provision as early as possible. Talk to your employer and get advice from experts to find the best way for you to provide for your well-earned retirement. That way, you can look to the future with peace of mind.
