Germany Insurance Industry, Insurance Industry In Germany
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Health Insurance In Germany
About 85 percent of the German population is insured under the Gesetzliche Krankenkasse (GKV), the German version of a national health system. The most popular insurance companies that provide this compulsory or mandatory coverage are AOK, BEK, BKK, DAK, KKH and TKK.
There are three ways one can be insured under the national health insurance plan in Germany.
- If you are an employee of a company and your gross monthly income is less than €3,825 you are obliged to enroll in the GKV. Your share of the premium is deducted from your salary on a monthly basis and should cost about 13.8% of what you earn. Your employer will generally pay half of the premium.
- The second way to be insured under the GKV is to elect to be. You can do this if you earn more than €3,825 or if you are self-employed or a civil service employee.
- The third and simplest, way is to be a member of the family of someone enrolled in a mandatory health plan. That entitles you to the same benefits.
If you earn more than €3,825 per month (including Christmas and vacation pay) or are self-employed, and you don’t elect to be in the Government insurance plan, you can be insured by a private insurance company (Privatkrankenkasse), which allows you to tailor your insurance to meet your needs. Employed persons who opt out of the GKV can still expect their employer to pay half of the premium.
Private insurance premiums can be lowered if you elect to pay your minor medical expenses yourself, up to an agreed on annual sum. Persons putting in no claims in a year visits can get up to five month’s premiums refunded, and this money will buy a lot of aspirin and routine doctor.
The most popular private insurance companies in Germany are DBV Winterthur, Vereinte, DKV, Victoria, Barmenia and Zürich Agrippina.
Personal liability Insurance
Personal liability insurance (“Haftpflichtversicherung”) covers the insured in case of accidental damage to a third party. This insurance also covers accidental damage caused in other homes. This type of insurance policy provides covers against financial ruin in case of claims for compensation by third parties.This is mandatory in the case of automobiles.
Accident and Disability Insurance
Most accident insurance will pay protection in case of death or a daily sum if you are hospitalized or written sick. It may even pay damages in case of injury and any cost relating to cosmetic surgery. Disability insurance pays a lump sum, the size of which depends on the degree of injury.
The least expensive version is the reine Risiko-Unfallversicherung, which has a low premium and pays a large lump sum in the event of disability. The catch is that it doesn’t pay for lesser injuries, such as a broken arm or leg.
Home Insurance
Household Insurance (Hausratversicherung), covering the contents of your home against fire, water damage, theft, vandalism and hail, isn’t required by law in Germany. But it is recommended and some landlords demand it.
Policyholders should make sure they insure their household goods for their full value and maintain a current list of all personal items such as furniture, home entertainment equipment, jewelry and antiques. Some policies even pay for hotel stays during the renovations that are necessary for claimants. Most people in Germany insure their homes for €600 per square meter of living space. Hence a home of 150 square meters would be insured for about €90,000, and the premium for such a policy would be somewhere between €80 and €100 a year.
In the event of damage, contact your insurance agent immediately by phone and by registered letter. In the case of theft you must prove what was stolen. Receipts, inventories, guarantees and photos are very helpful.
Legal Insurance
Legal Insurance (Rechtschutzversicherung) covers any legal costs you encounter, up to €150,000. And, if you want to countersue, it will pay as long as there is a reasonable chance of winning. Legal insurance can be purchased for the entire family, for the job (Arbeitsrechtschutz) and for traffic infractions (Verkehrsrechtschutz) . If you’re renting your apartment or house, it’s a good idea to have Mietrechtschutz insurance, which can cost up to €60 per year.
Life Insurance
Life insurance (“Risiko-Lebensversicherung”) is a commonly held policy and guarantees the family of the insured person a fixed financial sum should the insured person die. The “Kapital-Lebensversicherung” is one way of saving for the future.
The social insurance system is stable and dependable, especially for taking care of the family if something happens to the breadwinner. However, changes in the hugely expensive social systems may be in the wind, and in any case the foreign visitor might not be able to take full advantage of it. Life insurance in Germany is essentially the same as that available in most western countries. Varieties of it include whole life, which can generate annuities or lump sum payments after a certain amount of time (usually 12 years); term life policies that pay death benefits to surviving family members or other beneficiaries, and variable dynamic policies that grow at different rates over the years.
