The five most important insurances: for your family

The German citizens transfer billions of euros to insurance companies every year. Every citizen is well advised to critically question the necessity and benefits of any insurance policy.

In this way, unnecessary expenses can be avoided and the monthly budget of the household can be spared noticeably. With comparison portals such as moneycheck you can find out quickly and directly which insurance you should take out and what the cheapest offers and the best services are.

These insurances are a must

Many people ask themselves which insurance is really important. In the following we will inform you about the five insurances you really need.

1. Health insurance

Health insurance coverage is compulsory by law in Germany – and of course all members of the family must be insured. It is up to you whether this happens within the framework of statutory health insurance or through private insurance.

Above all, it is important to be adequately insured abroad, for example when going on holiday. Statutory health insurance insured persons in Europe receive at most inadequate protection within the framework of agreements between social insurance companies, outside Europe the statutory protection of health insurers does not work.

Conclusion: Health protection is extremely important for families – and foreign health insurance is very important when traveling abroad, actually a must.

2. Disability insurance

The greatest asset of a person is labor. Reason enough to insure your workforce adequately. In the best case, this happens with an occupational disability insurance that pays a monthly pension if you are no longer able to work. This monthly pension should amount to at least 60 percent of the last net income.

Conclusion: Your workforce will often be worth many millions – this must of course be secured accordingly!

3. Term life insurance

Term life insurance is the important basis for family financial security. When the head of the family dies, life insurance is more or less a substitute for income. If the person who has earned the largest share of household income dies, term life insurance is a lifeline. Because there are further costs for the care of the children for the family.

Conclusion: If one parent dies or, under certain circumstances, both of them die, smaller children in particular must be adequately protected so that the children’s education and advancement are not under the pressure of financial worries.

In principle, you should set a multiple gross annual salary as the amount for term life insurance so that the protection is sufficient.

4. Private liability insurance

Parents are liable if they violate their duty of supervision. Children are liable from the age of seven for the damage they cause. In road traffic, this grace period applies up to the age of ten years. The liability of the children and other family members can be transferred to private liability insurance.

Such a private liability insurance covers such damage – and also helps with unjustified claims, so that it also offers passive legal protection.

Conclusion: Real compulsory insurance – families cannot do without private liability insurance.

5. Daily sickness allowance insurance

In the event of illness, the wages are paid and after the continued payment of wages by the employer, if the illness continues, you will receive sickness benefit from the health insurance company. Those who are legally insured receive a maximum of 90 euros a day – even if their income is significantly higher.

For example, if you earn 5,000 euros a month, you won’t get far with 90 euros a day: you will be confronted with a loss of income of several thousand euros in the event of a prolonged illness. This problem can be compensated privately with a daily sickness allowance insurance.

Conclusion: From this it is easy to see that it is important to take out daily sickness allowance insurance, because the income gaps for high earners and the self-employed can become life-threatening in the event of a longer illness.

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