The most important in brief
Everyone should have health insurance and personal liability insurance.
If you own a property, a homeowners insurance policy is also essential. Occupational disability and travel health insurance are very useful.
Life insurance is no longer worthwhile.
Mobile phone, glasses and luggage insurance are superfluous.
This is how you proceed
Check your insurance regularly as soon as something changes in your life – for example, when you move in with someone, get married or retire.
Before taking out an insurance policy, always consider whether you could pay the costs out of your own pocket in the event of an insured event. Then you don’t need the insurance.
Use our overview of recommended insurances for singles, families and pensioners to decide whether you are sufficiently covered.
In addition to compulsory insurance, there are some contracts that you should definitely have, because they protect you from major financial risks. The nice thing is that important insurance does not always have to be expensive. A good personal liability insurance is already available for 5 Euro per month, a travel health insurance for less than 10 Euro per year.
Personal liability insurance
Private liability is one of the most important insurances. It can protect you from existentially threatening costs, for example if a person is harmed through your fault. Personal liability is therefore a must for everyone. However, not everyone needs their own contract: many are insured via the family tariff of their parents or partner.
For property owners: homeowners insurance
If you own a property, you should take out a homeowners insurance policy for your house or apartment. This covers damage caused by storm, hail, fire or lightning. If necessary, you can extend the contract with a natural hazard insurance.
A foreign travel health insurance is very useful, also for journeys within the European Union. It pays for treatment and medically necessary repatriation. The statutory health insurance covers such costs abroad – depending on the country of travel – only partially or not at all. If you have private health insurance, you should also check whether you need health insurance abroad. If you are going abroad for more than eight weeks, you will need a special contract.
Some insurance contracts fall more into the „can-do“ category. This means that they are not absolutely necessary, but can in some cases be a good supplement to your insurance cover. However, you should only deal with such offers if you already have all the really important insurances and there is still enough money in your household budget for additional protection.
Supplementary care insurance
Care is expensive. The benefits from the statutory nursing care insurance are usually not sufficient to cover the high costs of care and medical care. A private supplementary nursing care insurance can close this gap, but often costs quite a lot. Such a contract only makes sense if you can afford the high premiums in the long term.
For parents: child invalidity insurance
If a child becomes disabled due to illness or a serious accident, child invalidity insurance can provide financial security for the future. Good policies provide a monthly pension for life. At the end of education, the child needs occupational disability insurance instead of child invalidity insurance.
Home contents insurance
If a water damage destroys the apartment, the household insurance replaces clothes, furniture and valuables. It is particularly suitable if you have expensive equipment or if you cannot replace the most important inventory from your savings.
For car owners: fully comprehensive / partially comprehensive insurance
You can compare here: https://www.compare.com/auto-insurance
In the event of an accident, your car is not covered by motor vehicle liability insurance; instead, fully comprehensive and partially comprehensive insurance are taken out. You should insure new cars with a fully comprehensive, for high-quality older cars a partial comprehensive is sufficient. In the case of old rust leaves you do not need either of the two insurances.
For the self-employed: basic pension cover
If you are self-employed, the first few years are all about business. But at the latest when your company is running smoothly, you should think about taking out a basic pension plan for your time as a pensioner. You can either take out compulsory pension insurance under the statutory pension insurance scheme or save up in a classic Rürup pension insurance scheme. Another possibility is a combination of voluntary statutory pension insurance and a unit-linked Rürup pension insurance.
For employees: Occupational pension provision (direct insurance)
If you are employed and assume that you will remain loyal to your employer for the next few years, you should address the issue of occupational pension provision. Your boss is obliged to arrange a private pension insurance for you. In the context of occupational pension provision, one also speaks of direct insurance. The advantage: You pay no social security contributions or taxes on your direct insurance contributions. It’s worth it if your boss pays part of your contribution. A 15 percent subsidy will be compulsory for the employer from 2019 – but try to negotiate more.