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Mahdi Barzkar
Owner and insurance broker authorised under section 34d(1) of the German Trade Regulation Act · Register number D-H3YB-K7WLO-18.
Which events would be difficult to finance?
Protection starts with the consequences of a risk
Not every risk needs an insurance policy. The first question is which events could seriously affect your financial stability and which risks you could reasonably carry yourself.
Consider major risks first
Examples may include a long-term loss of working capacity, substantial liability claims, the death of a supporting person or severe damage to an owner-occupied building. Whether and how these topics are relevant requires an individual review.
Include protection already in place
Statutory benefits, reserves, support from your personal network and existing policies all belong in the overall picture. Only then can a possible gap be discussed meaningfully.
Terms matter more than product names
Products with similar names may differ in covered events, exclusions, deductibles and duties. We therefore consider the specific policy terms as well as the contribution.
Distinguish likelihood from impact
Two questions help when assessing a risk: How likely is an event, and how severe would its financial consequences be? A frequent but small loss can often be paid from reserves. A rare event with very high costs, on the other hand, can threaten your financial existence – this is exactly what insurance cover is intended for. Conversely, it can make sense to carry small risks yourself on purpose, for example through a deductible.
Areas of risk at a glance
Which areas are relevant to you depends on your circumstances. Areas commonly considered include:
- Liability: Under German law, anyone who culpably causes damage to another person is in principle liable without an upper limit. Claims can be very high, especially for personal injury.
- Ability to work: In many households, ongoing income pays for rent, loans and everyday life. Occupational disability, basic ability and accident insurance are linked to different events.
- Dependants: If a person dies who contributes to the family income or helps carry a loan, term life insurance may be a topic.
- Health and long-term care: In Germany, health insurance is in principle compulsory, either statutory or private. Supplementary benefits and possible care costs are considered individually.
- Home and property: Without suitable cover, severe damage to your own building can also put a strain on its financing. For tenants, household contents tend to be the focus.
- Vehicle: Motor third-party liability insurance is required by law for registered motor vehicles.
What statutory benefits cover – and where their limits are
Statutory benefits are an important foundation. However, they do not cover every situation and are usually tied to conditions. Some examples:
- Illness: Employees with statutory health insurance usually first receive continued pay from their employer and then sickness benefit (Krankengeld) from their health insurer, which is lower than their previous net income.
- Reduced earning capacity: The statutory pension insurance pays a reduced earning capacity pension (Erwerbsminderungsrente) under certain conditions. What matters is how many hours a day you can still work under the usual conditions of the general labour market, not your previous occupation. Anyone born after 1 January 1961 no longer has statutory occupational protection.
- Accident: The statutory accident insurance covers accidents at work, on the way to and from work and occupational diseases, but not accidents in your free time.
- Long-term care: The statutory long-term care insurance covers only part of the costs. The remainder is initially borne by the person in need of care.
- Survivors: Widow's, widower's and orphan's pensions are tied to conditions and in many cases replace only part of the lost income.
Determining your needs transparently
How much cover is appropriate cannot be answered in general terms. It helps to start from ongoing expenses and commitments rather than from a round figure. For a first orientation, this website offers calculators for the need in case of occupational disability, the sum insured for term life insurance and the sum insured for contents insurance.
- List expenses: Which costs would continue, for example rent, loan repayments or childcare?
- Deduct what exists: Which statutory benefits, reserves and existing contracts would already apply?
- Define the period: How long would a gap need to be bridged, for example until retirement or until the children are financially independent?
- Put the result in context: The remaining gap is a basis for the conversation, not a finished recommendation.
Answer health questions carefully
For many types of cover, for example occupational disability, term life or private health insurance, the insurer asks questions about your health before the contract is concluded. Under section 19 of the German Insurance Contract Act (VVG), you must disclose the circumstances known to you that the insurer asks about in text form. Incomplete or incorrect information can lead the insurer to withdraw from the contract, terminate it or adjust its terms; in the event of a claim, your cover may then be at risk. It therefore helps to clarify doctor's visits and treatments within the period asked about in advance. Health data does not belong in the public request form; it is exchanged only through a secure channel agreed separately.
This content provides general orientation. Situations and benefits mentioned are examples; the specific need, policy terms and individual advice are decisive. It does not state a price, acceptance or cover decision.
Related guides
Frequently asked questions
Which protection should come first?
That depends on your circumstances and the potential financial impact. Priorities should therefore be determined individually.
Is the cheapest policy automatically suitable?
No. Contribution, benefits, exclusions and policy terms need to be considered together.
Which insurance is compulsory in Germany?
People living in Germany are in principle required to have health insurance, either statutory or private; long-term care insurance is linked to it. Anyone who wants to register a motor vehicle needs motor third-party liability insurance. Further obligations apply to certain professions and activities or, depending on the federal state, for example to dog owners. Many important types of cover, on the other hand, are voluntary.
Do I need occupational disability insurance?
This cannot be answered in general terms. What matters is how you would fund your living costs if you could not work in your occupation for a longer period, and which benefits and reserves are already in place. Besides occupational disability insurance, there are solutions with other benefit triggers, such as basic ability or accident insurance. Their differences should be explained before a decision.
Should I carry small losses myself?
That can make sense if you have sufficient reserves. In many policies a deductible lowers the contribution, but it means you pay part of every claim yourself. Whether a deductible fits, and at what level, depends on your reserves and on how much risk you want to carry yourself.
What can I do if my insurer refuses to pay?
Ask for the reasons for the decision and check it against the policy terms. Out-of-court arbitration bodies exist for disputes: the Insurance Ombudsman (Versicherungsombudsmann) and, for private health and long-term care insurance, the Ombudsman for Private Health and Long-Term Care Insurance. The procedure with the Insurance Ombudsman is free of charge for consumers. You can also file a complaint with the Federal Financial Supervisory Authority (BaFin).
Next step
Put your topic into context with us.
Send a short request without health or contract details. We will contact you to agree on the next step.