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The German Pension System: The Ultimate Guideline

Posted on June 17, 2022April 3, 2023 by MW Expat

As an expat coming to Germany, we understand that the German pension system can be hard to understand. If you come to work in the country and are employed, you will contribute to the pension system, just like every other citizen. Does this sound too confusing? Read this article to better understand how the pension system works in Germany for expats!

What is the German pension age?

The German pension system is experiencing some major changes in terms of retirement age. Nowadays, the official retirement age for women is 65 years and 67 years for men. Over a transition period from 2012 to 2029, this will gradually climb up to official retirement age. In addition, an early retirement is possible in Germany if you have worked for at least 35 years. However, for every year that you retire earlier than planned, 3.6% of your pension will be deducted. At the moment, 4 employees finance 1 retiree in Germany.

First step: taxation

First of all, you should be aware that all pensions are taxable in Germany. What does this mean? This means that you must declare all pension payments you get to the tax office, whether it is in Germany or in a foreign country. These payments may include a state pension, occupational pension scheme, Riester pension or private pension insurance.

In some cases, your pension could be subject to double taxation, which occurs when both Germany and your place of residency tax your pension income. As a result, you must determine whether the two nations have a double tax agreement in place.

In addition, as soon as you’ve paid into your pension for more than five years, you will receive an annual pension information letter with your pension balance and further information.

What is a mandatory state pension?

In Germany, the mandatory state pension (statutory pension) is known as the Gesetzliche Rentenversicherung (GRV). Employees contribute to the German state pension through payments to the German social security, where a proportion of the wage is paid. Instead of being saved or invested, these compulsory contributions are reallocated to pay for existing pensioners. The system is subsidized through the German state.

For expats who decide to leave Germany, two scenarios may occur. On the one hand, it might be possible to get a return on your half of the pension contributions to the state. If you have paid into the German pension scheme for less than five years, you can get half of your saved retirement back (only half of it, since 50% is paid by the employee and 50% by the employer; you can only get the amount paid by the employee back). You can receive this right away, but you have to submit a request for it.

On the other hand, if you have contributed to the German pension system for more than five years, you have to wait until you reach retirement age before you receive your German pension abroad. In this case, you will get the full retirement amount you saved for the time that you were contributing into the system.

However, the statutory pension insurance is not enough and it is usually advised to supplement it with a private pension fund. Contact us for a free consultation today to find out more information about this.

What is a Riester pension?

The Riester pension is one of the most complex parts of the German pension system. The Riester pension is a state-subsidised private pension plan. This is how it works: as an individual, you contribute to a private pension contract, bank savings plan or fund during your active working life. This way, you get state allowances, tax advantages and a monthly pension for the rest of your life.

What happens if you are still contributing with your Riester pension and you decide to leave Germany? Since these financial benefits are directly linked to your residency in the country, you are no longer eligible for additional subsidies and allowances from the German government. If you move to another EU country, you will not be required to repay anything and will be able to claim the benefits of the plan when you retire.

However, for non-EU citizens, the German government would expect you to repay any state contributions made to your Riester account by the time you retire. Taking this into account, the Riester pension system is only convenient for people who plan to stay in Europe for their whole lives.

What is a basis pension (Rürup) and BAV?

The basis pension, sometimes known as the Rürup pension, is named after its “creator”, Prof. Rürup. The Rürup pension was established to allow self-employed people and freelancers to save for retirement in the same way that employees do.

Moreover, a company pension scheme (bAV = betriebliche Altersvorsorge in German) is the creation of a supplementary pension through the employer from contributions of the employer, the employee, or both combined.

For expats who leave Germany, we have good news: both pensions can be transferred abroad.

What is a private pension insurance?

The private pension insurance (Private Rentenversicherung) is made up of individual pension investment plans set up by banks and insurance companies to raise your overall German pension entitlement when you reach the retirement age. There are good news for expats who leave the country: you can get your private pension in every foreign country around the world without any complications or deductions.

We hope that this article helped you better understand the way the German pension system functions and how you can take advantage of it as an expat. If you wish to learn more information concerning your personal options, contact us here!

Expat Life in Germany 2022: New Changes That You Should Be Aware of Now

Posted on March 3, 2022April 3, 2023 by MW Expat

Expat life in Germany can be especially daunting. Every year, new and updated policies come into effect that expats need to be aware of, often feeling overwhelmed by the sheer number of changes. While it may seem tough to keep up to date with all these alterations, the best way to make your life as an expat in Germany successful and fulfilling is by proactively preparing early for the inevitable policy shifts. With a little extra effort in understanding and learning the rules of the game around you, it’s possible to enjoy a journey filled with joyous cultural experiences.

Expats in Germany face significant issues, such as a language barrier and the difficulty involved in learning German, finding work, figuring out where to live, understanding the red-tape maze and bureaucracy, dealing with the culture shock, and more. While it can be challenging to navigate these hurdles, having a keen understanding of policy changes affecting expats will surely make things easier for you.

So, without ado, let’s explore the changing laws, rules, and regulations that are bound to affect you in 2022:

Social Security Changes

Here are the changes that will affect social security in Germany in 2022:

New Social Security Contribution Threshold

Each year, the federal government alters the social security contribution assessment ceiling. However, due to negative wage development in 2021, most thresholds will remain the same, and some will reduce. The income threshold for statutory health insurance and long-term care insurance contributions will remain the same this year.

Meanwhile, the threshold for pension insurance will vary across different federal states as the government tries to reduce the difference between pensions in western and eastern Germany. You should contact your expat insurance company to determine what these changes mean for your insurance.

Compulsory Insurance Limit Will Remain Unchanged

The compulsory insurance limit will remain at 64,350 euros each year. If you earn more than that, you can take our private health insurance in the country. It will allow you to discuss personal accident insurance and other medical insurance varieties with your provider.

Childless Individuals Will Pay Higher Long-Term Contributions

Germany will increase the contribution rates for long-term care insurance for childless individuals in 2022. They will justify this increment by stating that it will cost the state more to take care of them in their old age without children to take care of them. So, childless individuals aged 23 or more will see a 0.1% to 3.4% rise in their contributions.

Healthcare Changes

Germany’s healthcare is facing the following changes:

Digital Sick Notes

People working in Germany have had to send digital copies of their doctor’s certificates to their employer to avail sick leave for some time now. But from July 1, 2022, the doctor will send copies to the resident or expat international insurance company and your employer directly.

The Use of E-Prescriptions

The government wants to replace the pink prescription forms doctors use for prescribing medicine in January 2022, but the changeover to e-prescription hasn’t taken place yet. However, the Federal Health Ministry insists that the change, allowing your GP to send an e-prescription to the pharmacy directly, will occur this year.

EU Digital Certificate’s Limited Validity

The European Commission decreed in December 2021 that starting from February 1, digital COVID certificates will remain valid for nine months without a booster vaccine.

Online Organ-Donation Information

From March 2022, GPs will need to give you more detailed information about your organ donation options. A new online portal will enable you to register for organ donation or withdraw your prior consent.

Work-Related Changes

Here are the changes you should be mindful of when working in Germany:

Increment in Tax-Free Allowance

The country will increase the rudimentary tax-free allowance for adults by 204 euros. It means that single individuals will not have to pay taxes on the first 9,984 euros of their salary. For couples in a registered marriage, the amount is double.

Moreover, the taxable component of pensions will be 82% in 2022, and only new pensioners will be affected by this 1% increment. If you are facing trouble with your taxes, it’s best to reach out to financial services in Germany to make sense of them.

Minimum Wage Will Increase

Germany’s minimum wage will increase this year to 982 euros each hour. It will see a hike again in July and reach 1,045 euros per hour.

Unemployment Benefits

If you lose a job in the country, you can register online with the Employment Agency to receive unemployment benefits. All you will need is a valid electronic proof of identity.

Compulsory COVID Vaccines in the Healthcare Industry

In 2022, healthcare workers will need to present proof of vaccine to work in German hospitals, nursing homes, and other healthcare institutes.

Benefit & Allowance Changes

Here are the changes in allowances and benefits:

Increase in Hartz IV

Individuals receiving unemployment benefit II (Hartz IV) will receive more money this year. Single individuals will receive a three euro increase, which will take their benefit up to 449 euros per month. The standard rate for young people and children will also increase.

More Care Relief

Germany will offer further relief to caregiver relatives, care staff, and people in need of care. Individuals who receive care in their homes will receive a supplement from their long-term care insurance to ensure they can manage the rising costs.

Increment in Child allowance & Maintenance Advance

The Kinderzuschlag or supplementary child allowance that low-income families receive along with their regular child benefit will increase this year to a maximum of 209 euros each month. Meanwhile, the maintenance advance given to single parents who receive no or irregular maintenance payments from the other parent will increase per the rising minimum maintenance amount.

The Bottom Line

With each passing year, Germany introduces more new laws and policies that affect its residents and expats. These were merely some of the significant policies that would affect anyone living in Germany. I hope they help you navigate the new rules seamlessly.

Procedure to Open a Bank Account for Expats in Germany

Posted on February 24, 2022April 4, 2023 by MW Expat

The procedure to open a bank account for expats in Germany might seem challenging considering the language barrier and the mounds of paperwork. This helpful guide gives you all of the information on opening a bank account in Germany and makes the process easier.

Opening a German bank account is one of the first things expats should do when they arrive in the country. It can help them buy international expat insurance, an apartment, find a job, get various services, and so much more. Needless to say, a German bank account is indeed a necessity for anyone starting their life in the country.

The German Banking System

The German banking system comprises three main pillars of banks; private commercial banks, public savings banks, and cooperative banks. Aside from this, there are also several international banks, online banks, and mobile banks in the country.

If you move to Germany without a bank account, initially, managing finances will not be too difficult. This is because significant companies accept payments from major international debit and credit cards, such as Visa, MasterCard, and American Express.

However, if your account is with a bank that does not have a location in Germany, managing finances through it would be pretty tricky.

Types of German Bank Accounts

German banks offer different types of bank accounts to customers. They include the following:

Current Account

These are the standard and go-to accounts for German residents since they help pay bills and receive salaries. Most German banks offer both current and specialized accounts for expats and residents.

Savings Account

You can open a savings account alongside your current account, and it is designed to help you save and earn interest over time. Such accounts can be either instant access for saving or fixed deposits. The latter can be either instant access that includes higher interest and a minimum deposit or a fixed period that the money has to stay in the account.

Non-resident Account

Savings and current accounts are typically only available to German residents. Non-residents have specific bank accounts they can open while not having a permanent address. This is an excellent option for expats planning to move from their home country.

Digital and Mobile Accounts

There are several mobile-only bank accounts recently opening up in the country. Moreover, most banks also offer online banking via their banking apps.

Off-shore Accounts

This is perhaps the best option for expats planning to move to Germany. It is also an excellent option for those who frequently travel from one country to another or have to transfer their funds to different countries.

German Bank Options to Choose from

Expats can choose from various German bank options depending on their needs and preferences. They include the following:

TransferWise
Sparkassen and Volksbanken (Savings and Cooperative Banks)
Nationwide Banks (Private Banks)
Revolut
Online and Mobile Banks

How to Open a German Bank Account?

EU nationals will not have a difficult time opening a German bank account. However, non-EU residents might face some difficulties since they require proof of income and jobs within the country and show their permanent address in Germany.

Moreover, some banks might be reluctant to open bank accounts for expats since these people don’t have a previous credit history. It can be challenging for expats to get around the banking system and open an account for these reasons.

The best way to open a German bank account is to visit the bank yourself and provide them with all necessary documents. These include the following:

Your passport with a valid visa or residence permit
Evidence of income and employment
Permanent German residence
Proof that you are a student if you are opening an account as one
SCHUFA credit rating
Initial deposit

When you open a German bank account, you might also be required to prove your identity. This will likely be done with a webcam or email verifying code.

Moreover, if you plan to open a German bank account abroad, this option might only be limited to EU residents. The process is straightforward as you will simply need to submit your documents and sign them online.

Factors to Consider When Opening a German Bank Account

Before you open a bank account with one of the banks in the country, it is essential that you consider the following factors:

Research on all of the banking services they offer
If they provide customer support in English
If they give you term life insurance
What the maintenance and withdrawal fees are
If they offer online services
How extensive their banking network is
If they help you open international expat insurance

Final Words

This was an all-inclusive, comprehensive guide on opening an account as an expat in Germany. If you find any difficulties with this procedure, you can quickly get in touch with our experts. We can help you with the process and paperwork and provide you with guidance.

6 Point Checklist to Choose the Best Private Health Insurance Providers for Expats in Germany

Posted on February 8, 2022April 4, 2023 by MW Expat

We are here to help you choose the best Private Health Insurance providers for expats in Germany. Germany undoubtedly has one of the best healthcare systems in the world, with nearly all of the population having health insurance. Getting health insurance is mandatory for each resident, including expats living in Germany who are on a short trip. They should have at least the minimum level of coverage if anything.

There are three types of health insurance available in the country; the first one is public and state-funded health insurance, private health insurance, or a combination of both. While most of the population opts for public health insurance, about 10% of the population chooses private health insurance because of its numerous benefits.

If you have opted for private health insurance, it is imperative that you choose the right insurance provider. There are plenty of insurance providers for expats, but you must choose one who gives you the best type of coverage suitable to your personal needs. This comprehensive guide covers all the essential points that expats must consider to choose the best private health insurance, provider.

Who Should Go for Private Health Insurance?

People with high wages and self-employed individuals, such as business owners or freelancers, have the option to choose private health insurance. They can opt out of the state-provided health insurance and choose this one since it tends to be more comprehensive and cover costs from private hospitals and healthcare providers.

To sum, the people who qualify for private health insurance can even include expats living in Germany if they are one of the following:

Civil servants
Freelancers
Business owners
Those who earn above 64,350 euros per year
Students between the ages of 24 and 30

Why opt for Private Health Insurance?

While the public health insurance in Germany is also excellent, if expats qualify for private health insurance, they may choose it because it provides numerous benefits. For example, it normally leads to shorter appointment waiting times, access to private healthcare providers and hospitals, and a wider range of services.

Moreover, individuals with private health insurance can choose either private doctors or those doctors in the public sector. They can choose either based on their preference, needs, and convenience. It can even allow you to get a private room in the hospital after treatment or procedures.

Checklist to Help Choose the Best Private Health Insurance Providers

There are over forty private health insurance providers in Germany that expats can consider choosing. Expat health insurance in Germany can also include private health insurance, which is why individuals coming from other countries who meet the criteria can apply for this type of insurance.

This is why they should follow certain steps to research and then choose the most suitable insurance provider based on their healthcare needs and problems.

1. Understand What Private Health Insurance Includes and Possible Drawbacks

Since the public healthcare system in Germany is one of the best in the world, most individuals do not feel the need to opt for private health insurance. This is why individuals considering this type of insurance must do plentiful research to understand what medical costs it can cover and the possible drawbacks of this insurance plan.

Private health insurance can cover the cost of medical treatments, prescriptions, emergency visits, therapy, and other medical procedures. However, this largely depends on the type of plan it is. Most basic plans offer the same facilities and services that the regular public health insurance plan covers.

Going with a premium private health insurance plan will be more comprehensive and cover more costs. However, these plans may also be more expensive. Another possible drawback of private health insurance is that the monthly payments tend to increase over time as you become older and more health complications arise. However, this can be alleviated by swapping and changing insurance providers.

Lastly, having private health insurance can often be a hassle since you will need to pay doctor fees and hospital bills yourself and then go to the insurer to claim it back. This is not the case with public health insurance in Germany.

2. Figure Out How Much You Can Afford to Pay Monthly

Private health insurance monthly costs may vary depending on multiple factors. Some of these include the insurance provider, your occupation, type of plan you choose, your health problems, age, and health risks. This is why you should contact different health insurance providers and discuss the monthly costs.

You should opt for a private health insurance plan that fits your budget. In some cases, if you are not a business owner or self-employed, your employer might be paying for half of the cost. In that case, you should figure out how much you will be paying on a monthly basis.

Furthermore, you can also control the excess amount, which is the portion of the medical cost you will pay yourself before the insurance provider steps in. If you keep these costs high, your monthly payment cost will be lowered.

Your monthly cost should likely include the overall monthly health insurance you are paying for your entire family. There is one monthly cost for the entire family in public health insurance, but this is not the case with private health insurance. You will likely need to purchase private health insurance plans for each individual of the family, including children.

3. Choose the Right Private Health Insurance Plan

Once you have figured out your budget and healthcare needs, it is time to contact health insurance providers and discuss what plans they can offer you. You must review everything that the plan offers to know exactly what is included and what you are paying for.

Explore different health insurance providers and compare the packages, plans, and monthly payments they are offering. After this, you will be able to choose a plan that best fits your needs and budget. These are the key factors you must consider when reviewing each private health insurance plan:

Does it include prescription medication coverage?
Does it include vision and dental coverage (If it is something you require)?
Does it cover pregnancy and childbirth?
Does it cover annual check-up doctor appointments?
What hospitals are included?

4. Unsubscribe from Public Health Insurance

If you have already enrolled in the public health insurance plan, you will need to unsubscribe from it before switching to the private health insurance plan. You can easily do this by letting your employer or insurance provider know that you wish to unsubscribe. Your procedure to un-enrol from the plan will begin, which will likely take two months. Once it is done, you can then apply for private health insurance.

If you have just arrived in the country and have not yet enrolled in any type of insurance, you will simply need to let your employer know that a private insurance provider would rather cover you. You will also need to inform them which provider or insurance company you have chosen. This will prevent you from automatically being enrolled in public health insurance.

5. Subscribe to Private Health Insurance

Once you have chosen which private health insurance company and provider to go with and un-enrolled from public health insurance, you can register with the provider. You will likely need to give them information about your employment, employer, health records, and your citizenship status in the country.

For expat health insurance in Germany, you should first be a registered citizen in the country before you apply for health insurance. For those expats coming from a non-EU country, you will need to get health insurance before arriving in Germany. This will help you register yourself as a citizen of the country.

Once you register for private health insurance, you will be sent your private health card via post. The card will contain relevant information about you and your private health insurance coverage. It should be presented to the hospital, pharmacy, or doctor in order to speed up appointment times and insurance claims.

6. Swap Private Health Insurance Provider Sometime Later

The monthly cost of your private expat health insurance in Germany will likely increase over time. It is recommended that at this point, you swap and change your health insurance provider and company to someone who will offer the same plan and benefits at better rates.

If you wish to change your provider, you will need to inform your current insurance provider at least two to three months before the end of the year. Similarly, if you want to cancel your policy or change to a new one, you will need to inform your current provider beforehand.

It is important to note that reverting back to public health insurance schemes is difficult once you have registered for private health insurance. However, the transition will be easier if your yearly salary has decreased and does not meet private health insurance criteria anymore.

Final Words

The process of finding the best plans for expat health insurance in Germany can be arduous and challenging, especially if you don’t know the language to begin with. For this reason, it can be helpful to seek guidance from trusted advisor. This is what we specialize in here at MW Expat Solution Services. Let us provide you with more clarity on which plans to go for and help you with the application process as well. Contact us for a free consultation here.

9 Mistakes Expats Should Avoid Before Buying Car Insurance in Germany

Posted on January 6, 2022April 4, 2023 by MW Expat

If you’re an expat living and thinking of purchasing a car, the first thing you should do is consider buying car insurance in Germany. After all, when you make a costly investment, such as a car, you need to take the necessary measures to protect it. This is where car insurance becomes essential.

In Germany, car insurance is mandatory, which means that drivers must have some form of car insurance; otherwise, they will not be allowed to register it. This goes for all German citizens and expats. You will need to buy car insurance from here as foreign car insurance will not suffice.

Take a look at the most common mistakes expats make when buying car insurance and learn how you can avoid these pitfalls.

1. Not Knowing the Amount of Insurance Coverage You Need

Germany has a set requirement of the coverage you should have for car insurance. However, this is typically not enough to base the entire amount. It is best for you to consider multiple factors and then decide the amount of insurance coverage you can afford and will be enough to cover any costs when needed.

The factors you should consider are:

Vehicle type and model
Cost of the vehicle
Years of experience of the driver
Weather and road conditions in your city and local area

2. Not Comparing Insurance Companies

Car insurance usually requires paying hefty amounts. This is why it is essential that you shop around across different insurance companies and find the cheapest option. Depending on your driving history, how many tickets you have got, and if you have had a car accident before, you might be quoted a different price.

This will help you find the cheapest and most suitable deal for your car insurance.

3. Lying on the Car Insurance Applications

Lying on your car insurance application is probably the biggest mistake you can make as an expat. Not only is there a good chance that you will get caught, but you will also face negative consequences. For example, the car insurance company might reject your application, and that would make it harder for you to find other companies willing to provide you with insurance.

Moreover, if they find out you lied after you have had an accident, they might cancel your insurance and not cover your costs. Hence, telling the whole truth and being completely transparent about your past records and vehicle is essential.

4. Not Updating Your Insurance Policy

Forgetting to update your insurance policy is another common mistake people end up making when they have an insurance policy. Germany is pretty strict about this, so that you might suffer from severe consequences. Therefore, when your children become drivers or if you get married, make sure you mention it in your policy.

5. Not Doing Enough Research

Most car insurance companies can be found online, so it will be easier for you to do plentiful research before choosing the right one. There are multiple platforms that can help you compare costs or do it yourself. This will help you find the lowest price and one that has the best terms.

As an expat, especially if you have recently moved to Germany, doing plentiful research would pay for you.

6. Buying Excessive Insurance Coverage

It is not always a wise decision to pay too much insurance coverage. For example, if you have an old car, you don’t need to buy too much insurance. Even generally, you should not pay more than 1/10^th of your car value for insurance coverage.

7. Buying the Bare Minimum of Insurance Coverage

This is one of the most common mistakes expats make when buying car insurance that will lead to negative consequences because this seems like the most tempting option. In nearly all cases, minimum insurance is not enough to cover costs. This is especially true if you have a new or expensive car. In the case of accident or theft, you might end up at a considerable loss if you just have the bare minimum of insurance coverage.

8. Asking Insufficient Questions

This will likely be your first time buying car insurance in Germany. This is why it would be helpful to ask questions if you come across issues, whether you get car insurance from an agent or an insurance company.

9. Not Looking Up Car Insurance Discounts

There’s a good chance that you save up significant amounts of cost if you look around online for discounts. There are tons of companies offering insurance and discounts. You just need to spend time looking for them.

Final Words

Do you need more help with buying car insurance in Germany? As an expat, it can become a daunting experience. Get in touch with MW Expat Solution Services, an expat insurance company that provides you with professional insurance solutions. For more information, visit their website today!

Guide to Personal Liability Insurance in Germany

Posted on January 6, 2022April 4, 2023 by MW Expat

Personal Liability Insurance in Germany can be a lifesaver for those who find themselves in an unpredictable accident. The unfortunate truth is that accidental damages or injuries can lead to costly law suits that can leave innocent victims facing reparation costs beyond their means. Fortunately, insurance providers conveniently offer liability insurance as a protective cover against such panic situations, so you are never left with exorbitant payments should something go wrong. As a matter of fact, such insurance premiums are usually more reasonable than having to pay for the hefty reparations out of pocket. So if life throws you into an undesirable but unexpected scenario, make sure you’re prepared with Personal Liability Insurance in Germany!

Liability Insurance

Liability insurance is an indemnity program that takes care of monetary compensation in case of accidental damages. For example, you forget to clear the snow in front of your house, and someone slips on it and gets injured. They can sue you for it and demand you pay for treatment. Now even though you didn’t do anything on purpose, you will have to pay the price out of your pocket. But if you have liability insurance, your insurance provider will take care of all the damages, saving you from possible bankruptcy.

Liability Insurance in Germany

Germany offers a variety of insurance policies to its citizens, some of which are mandatory, like health insurance. While liability insurance in Germany is not obligatory, it is advisable to make that investment because if you accidentally hurt anyone, you will have to bear the reparation expenses no matter what.

In other words, if you injure someone in Germany, you will be held responsible for it even if it happened inadvertently.

Since you never know when and where you might end up in an accident, you should purchase liability insurance just to be on the safe side.

Third-Party Liability Insurance

Third-party liability insurance is the name given to a policy drafted to make up for the damages caused to a third party due to an accident you are responsible for. In Germany, you are not legally obligated to invest in such a financial security plan. However, most people get it to avoid paying wads of money due to accidental damages.

There are two main types of liability insurance programs in Germany

Personal liability insurance
Professional liability insurance

Personal Liability Insurance

As the name implies, a personal liability policy covers damages when you cause an accident in your individual capacity. Meaning, you happen to injure someone while out for an errand or your morning jog, you will require personal liability insurance to pay for repairs.

However, in some cases, personal insurance may not provide for the expenses incurred due to an accident. Scenarios involving an individual’s car or a large pet, such as a dog, are not taken care of with personal liability. Aside from that, if someone works in a dangerous occupation, then they also need a targeted insurance plan. These are the three exceptions when a liability insurance policy doesn’t work.

Professional Liability Insurance

A professional liability policy covers the costs of damages caused by accident as part of your profession. For instance, you are an architect, and you design a lousy building, which collapses entirely or partly, hurting the occupants, then you will use a professional liability policy to bear the expenses.

However, it must be noted that you don’t need the said policy if you are employed because then your employer is responsible for your insurance. Typically, freelancers get this program to prevent losing all their money in case a project turns out badly. Some professionals are legally obligated to purchase a professional liability policy, including

Architects
Freelance medical professionals
Web designers
Lawyers
Tax professionals
Civil engineers
Cooks

Choosing a Liability Insurance Policy in Germany

Germany offers not only various insurance policies but also many providers for residents and ex-pats to buy their program from, based on their needs. While having a bunch of choices to pick from is a good thing, for the most part, it can turn decision-making incredibly challenging. To help you with the process, we will share some tips to get legal insurance. Germany can easily qualify as the land of insurances and insurance providers. If you want to choose one, you should consider the following pointers.

How much coverage do you think you might need?
Can you afford the premium?

Generally, people go for the cheapest option to save money, not realizing that their decision might cost them a lot more in the long run. Obviously, if your plan doesn’t cover damages above a specific amount, you will have to make up the difference out of your pocket. Therefore, pick the best one instead of looking for a program with the lowest price tag.

Terminating an Insurance Deed in Germany

While acquiring insurance in Germany is fairly easy, terminating it isn’t because you cannot end a deed before its term is over. And when you decide to close an insurance deal, you need to inform your provider three months in advance. You can also change your service provider if you feel the need to do so, but to do that, you will have to inform them three months before the term end-date.

Want Insurance?

If you are looking for a top-notch yet reasonably-priced insurance policy in Germany, reach out to us at MW Expat and save your future from unnecessary financial burdens.