Insurance for personal accidents: Is it necessary or not worth it?
Deciding on Private Accident Insurance in Germany: A Comprehensive Guide
When considering private accident insurance in Germany, it's essential to understand the key factors that can help you make an informed decision.
1. Existing Statutory Coverage Germany offers statutory accident insurance for accidents that occur at work. Private accident insurance, on the other hand, provides additional protection during leisure time or outside work hours [1].
2. Scope of Coverage Private accident insurance typically offers worldwide protection and additional benefits such as compensation based on injury severity ("Gliedertaxe"), therapy consultations, and household assistance [1].
3. Cost and Premium Sharing Premium costs depend on the coverage level and risk profile. For employees, premiums are often shared with employers. Group policies tend to be more cost-effective than individual policies [1].
4. Tax Implications If the employer pays the premium, it is considered taxable income for the employee, although group insurance premiums under €100 per year are taxed at a reduced flat rate (20%). Some employer contributions for business-travel accident risks may be tax-free [1].
5. Risk Profile and Personal Circumstances Consider your lifestyle, hobbies, and risk exposure outside work. If leisure activities carry higher accident risks, private accident insurance could be more valuable [1].
6. Coverage Beyond Illness Private accident insurance focuses on accidents and typically excludes illnesses [1].
7. Complementing Other Insurances Private accident insurance is distinct from health insurance and does not cover general healthcare needs but covers accident-specific risks during non-work time [1][5].
Additional Considerations
- The costs for your accident insurance can be declared in your tax return under "Provisional expenses".
- Different insurance companies may pay out different amounts for the same injury due to varying 'Gliedertaxe' rates.
- Risk life insurance is suitable for securing the provision for your partner or children in the event of your death.
- The 'Gliedertaxe' provides a one-time payment.
- It is possible to have multiple accident insurance policies, but some insurers may refuse coverage if you already have one.
Features of a Good Accident Insurance Policy
- Comprehensive protection, benefits from 1% disability
- Tariffs with progression
- Appropriate benefits
- Pre-existing conditions taken into account from a higher disability level
- Extended deadlines for the onset and recognition of disability
- Coverage of costs for cosmetic surgery
- Coverage of rescue costs in case of accidents in the mountains
Cancellation and Settlement
If you are dissatisfied with the settlement of a claim, you can also cancel the policy. A good accident insurance policy should pay at least 500,000 € in case of total disability, and at least 100,000 € in case of 50% disability [1]. For an additional premium, many accident insurers offer an accident pension, which usually kicks in at a disability rate of at least 50% [1].
[1] Source: Finanztest.de [5] Source: gesundheitsinformation.de
1. Beyond Workplace Coverage: Since Germany's statutory accident insurance only covers work-related accidents, it's advisable to consider a personal-finance investment in private accident insurance for protection during leisure time outside work hours.
2. Enhanced Benefits and Global Coverage: Personal-finance planning for private accident insurance ought to account for the expanded coverage it offers, including worldwide protection, injury severity-based compensation ("Gliedertaxe"), therapy consultations, and household assistance, among other benefits.
