Important Types of Insurance in Germany

There are several statutory health insurance funds. You can choose which health insurance fund you would like to be insured with. A list of statutory health insurance funds in Germany can be found here. In addition to statutory health insurance funds, there are also private health insurance funds:

• Statutory health insurance: Most employees in Germany are insured with a statutory health insurance fund. These offer a wide range of insurance benefits that ensure needs-based healthcare. This includes, above all, the treatment of illnesses by doctors, psychotherapists and dentists, the coverage of hospital stay costs, the payment of sick pay and the provision of medication. Measures for the early detection of illnesses (preventive care) or for rehabilitation are also usually covered by the insurance. 
• Private health insurance: This insurance is primarily available to self-employed persons, civil servants and employees with an annual income above the compulsory insurance threshold of €73,800 gross. Private health insurance offers extended benefits. In addition, some practices treat only privately insured patients. The amount of the premiums depends on age, state of health and individual risks. The younger and healthier you are, the lower the premium. If you opt for private health insurance, it can be difficult to switch back to statutory health insurance later. As premium amounts increase with age, the decision to take out private health insurance should be carefully considered.

If you come to Germany from abroad to live and work, you need health insurance. For the first few days or weeks in Germany, you can take out international health insurance. This will cover you in case of illness, especially as proof of health insurance may be required when applying for a visa.

If you already have a job in Germany, you are entitled to health insurance under German law and can take out insurance with a statutory health insurance fund. If you are already in Germany but are still looking for work, you must take out private health insurance for the time being. There are special rates for this. 

Further information about the health insurance system and health insurance funds in Germany can be found on the independent information portal health-insurance.de

Statutory nursing care insurance provides basic financial security if you are no longer able to care for yourself and are dependent on nursing care. This is important because anyone can become in need of care, whether due to an accident, serious illness or severe age-related limitations. Nursing care insurance supplements health insurance and provides financial security for long-term care needs.

A statutory pension scheme provides for old-age provision. Employees pay contributions into the pension scheme during their working life, which are later paid out as pension benefits in retirement. The amount of the pension depends on the number of years of contributions and the amount of contributions paid. 

You are not only entitled to a pension at the statutory retirement age (regular old-age pension), but also, in certain circumstances, especially if you have health restrictions in your working life (reduced earning capacity pension) or if a family member who provided for the family dies (survivor's pension).

Employees are members of the statutory accident insurance scheme through their employer. This provides financial assistance in the event of accidents during working hours or on the way to work, as well as for occupational illnesses. Accident insurance is financed exclusively by the employer. Private accident insurance is available to provide cover against accidents during leisure time.

If you lose your job, unemployment insurance will cover you. The most important benefit of this insurance is unemployment benefit, which is paid for up to two years. The amount and duration of unemployment benefit depend on your age, the length of your previous employment and your previous income. If you resign from your job, you will not receive unemployment benefits. Unemployment insurance also offers support in finding a job.

In addition to the statutory social insurance policies mentioned above, there are several voluntary insurance policies that may be useful and offer additional protection. The most important ones include:

• Private liability insurance: This covers you if you, as the insured person, accidentally cause damage to a third party. It covers property damage and personal injury and prevents you from having to pay compensation claims yourself. This insurance is highly recommended, as without it you are liable for any damage you cause to others with your entire personal assets.
• Home contents insurance: With this insurance, you can insure all items in your home, such as furniture and valuables. The insurance covers damage caused by theft, fire or water damage, for example. The cost of home contents insurance depends, among other things, on the size of your home. 
• Occupational disability insurance: If you are unable to work due to illness or accident, the insurance pays an agreed monthly pension.
• Legal expenses insurance: This insurance protects you from high costs in the event of legal disputes.

You can obtain information about which insurance policies are useful for you from a consumer advice centre or a private insurance office, for example. As consumer advice centres provide independent advice, they are the best place to go for an initial consultation.