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6 Types of insurance should I take out in Germany because of COVID!

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The world as we knew it changed with the COVID19. The corona virus and above all its effects determine our everyday life. Below are 6 types of insurance you should make sure you have because of COVID. 

Corona is precisely why it is important right now that your personal insurance situation is also “crisis-proof”. You should make sure that you take out all the insurance that will secure your life in Germany. You can save yourself a lot of money by shopping for insurance at the moment. Find out below the 6 insurance your should take out because of the unpredictability of the Corona virus situation.

1. Health insurance

types of insurance

It goes without saying that your health insurance is extremely important in times of a virus pandemic. These types of insurance pay for the medical expenses incurred. Of course also for those who are caused by the corona virus (COVID-19). This applies to statutory health insurance as well as to private health insurance.

Best possible health insurance coverage

If you have been considering switching to private health insurance for a long time (e.g. as an employee, because you earn more than the annual wage limit of €62,550) in order to “upgrade” your sickness benefits, then now could be a good time to discuss this again to tackle. 

Better treatments / preferential services in the hospital or the possibility that doctors can bill for services outside of the fee schedule are just a few examples of the additional services provided by private health insurance.

Health insurance companies only offer sufficient protection

Even if this is often dismissed as pure advertising for private health insurance, everyone can read in the Social Security Code that the services covered by these types of insurance which are statutory only have to be “sufficient” and “medically necessary”. 

There is no mention of “the best possible medical care” anywhere. But precisely this can be existential in many cases. This is exactly why switching to private health insurance is a good idea. Not to save money, but to be able to drive the “Mercedes in our health system”.

Statutory insurance can also increase insurance coverage

But even if you have statutory health insurance, you can have your care situation on a higher level in the event of illness. Refer to the sections “Supplementary health insurance” below.

2. Private liability insurance

types of insurance

After health insurance, private liability insurance is definitely the most important insurance in Germany. With or without a crisis these types of insurance are crucial. A private liability insurance protects you against claims from third parties if you have injured someone else’s property or body. For example, due to an accident or carelessness on your part.

Statutory Liability

As the name of the insurance company suggests, there is statutory liability. This means that if you damage someone else’s property, for example, you can be held liable. You can read this in §823 BGB.

Children are not always automatically included in the insurance

Even if you have a family tariff for private liability insurance, this does not automatically mean that your children are fully insured. If your children are under 10 or 7 years of age, the module “children incapable of tort” must also be insured. Only then will payments be made for damage caused by your children (who are younger than 7 years old). There is no statutory liability under this age. In road traffic this applies even up to the age of 10 years.

3. Disability insurance

types of insurance

After health insurance and personal liability insurance, protecting your workforce is the next hugely important insurance. In other words, occupational disability insurance is nothing more than income protection or expenditure protection. 

Should you no longer be able to work in your last job due to illness, accident or more than an age-related loss of strength, your disability insurance will take over. Of course, insurance is a lot more complex than I could explain in a few sentences. 

Mental health and lifestyle diseases are the main causes

Contrary to popular opinion, everyone really needs disability insurance. Unless you are not dependent on your earned income. Then not. But that is unlikely to be the case for very few people. Since, according to the latest studies, mental illnesses (burn-out, nervous diseases, depression, etc.) and lifestyle diseases (e.g. cancer) account for almost 50% of the newly reported occupational disabilities, no job description is left out here. 

These diseases / causes can affect anyone. These types of insurance coverages cover everyone including and especially “office workers” that are particularly at risk due to pressure to perform, little exercise and often tend to eat unhealthy.

4. Term life insurance

types of insurance

If you have a family and want to protect your loved ones from financial ruin in the event of your unexpected death, term life insurance essential. Term life insurance only covers death. No coupling with a pension insurance or the like. 

This means that term life insurance is also relatively cheap. Not to be pessimistic, but especially in a situation like the Corona crisis, where a few deaths have to be expected, term life insurance can be extremely important for the financial survival of your family.

Always protect both parents

One of the biggest mistakes when it comes to term life insurance is that you only ever have to insure the main breadwinner. But this is wrong. The parent who is at home with the children must also be covered. 

If this parent disappears, there are also high costs for childcare and Co., because the working parent cannot suddenly stay at home. So please always cover both parents with term life insurance.

5. Supplementary health insurance

types of insurance

As mentioned briefly above, you can expand your health insurance coverage, especially during the Corona crisis, in order to have the best possible insurance in the event of an emergency. It is an open secret that private patients receive preferential treatment in the hospital or at the doctor’s. That’s just the way it is. This is because you can simply settle a lot more with a private patient.

Private patient as statutory health insurance

Even as a person with statutory health insurance, you can raise yourself and your family to a private patient level. For example in the hospital. With clever in-patient supplementary health insurance, you get the status of a private patient in the hospital with all the amenities that go with it. Twin rooms and head doctor treatments are just two of the benefits you could get from this.

Further supplementary health insurance

Of course, you can also improve your performance at the dentist or with outpatient treatment with the appropriate supplementary health insurance. This should not be underestimated, especially when it comes to dental treatments. The benefits of the health insurance companies are very limited here and you quickly end up with a larger budget.

6. Pension provision in the corona crisis

types of insurance

Yes, your personal retirement provision is also important now. Even in “normal times” the topic of old-age provision has about the charm of a colonoscopy, but this does not change the fact that you already have to think about your existence in the future today. Especially now! There are a lot of providers in Germany for these types of insurance.

Termination of the pension insurance has fatal consequences

Some people are likely to be canceling life and pension plans right now. With fatal consequences for your pension. Often one is not even aware that one is jeopardizing one’s entire future existence with an act that has not been considered today. 

As a rule, you can never catch up with what you have built up so far in terms of old-age provision if you interrupt or even cancel it now. I am of course aware that in some situations there is no other way and that it is better to pause your pension insurance for 2-3 months before you touch your disability insurance or liability insurance.

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Tim Gumbert
Tim is the go-to guy when it comes to finding all the gems regarding life as an Expat in Germany. His whole motto is discover Germany on your own and without a roadmap, explore new routes while climbing or mountain biking.
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