Health Insurance
Health insurance is mandatory in Germany. There are two main types: statutory health insurance (GKV) and private health insurance (PKV). Employees whose income falls below a certain threshold must insure themselves with GKV. Self-employed individuals and high earners can opt for private insurance. Contributions to GKV are income-based, while PKV offers individual rates depending on health status and age.
Liability Insurance
Private liability insurance protects against financial consequences if you cause damage to third parties. It is not legally required but is highly recommended, as it can cover significant costs in case of damage, such as accidents or property damage.
Pension Insurance
Statutory pension insurance is mandatory for employees and secures retirement provision. It is based on a pay-as-you-go system, where current contributors finance the pensions of current retirees. In addition to statutory pension insurance, there is the option to save for retirement through private and occupational pension plans.
Unemployment Insurance
Unemployment insurance is also compulsory for employees and is financed through contributions shared equally by employers and employees. It secures income in case of unemployment and simultaneously provides support for job searching as well as further training opportunities.
Nursing Care Insurance
Nursing care insurance is a mandatory part of social protection and supplements health insurance. It covers costs arising from the need for care, whether from care at home or in a care facility. Similar to health insurance, there is both a statutory and a private option.
Accident Insurance
Statutory accident insurance protects employees in the event of workplace accidents and occupational diseases. It is borne by the employer and covers medical treatment, rehabilitation, and, in serious cases, pension payments. Private accident insurance can be taken out additionally to cover recreational accidents.
Household Insurance
Household insurance protects personal property within the apartment or house against damages caused by fire, water leaks, storms, hail, burglary, and vandalism. It is optional but advisable, especially in areas with higher risk.
Legal Expenses Insurance
Legal expenses insurance covers the costs of legal disputes, including attorney and court fees. There are various types that cover different areas such as traffic, occupation, or private life. This insurance is also optional but offers financial security in conflict situations.