Insurance coverage for personal accidents: Is it worth the investment or not?
In the ever-changing world of insurance, understanding private accident insurance in Germany is crucial for securing comprehensive protection. The benefits, coverage, and costs of these policies vary significantly, influenced by factors such as age, profession, and risk profile.
For those seeking to secure their partner's or children's provision after their own death, risk life insurance may be more suitable. However, private accident insurance offers a wider range of benefits, particularly for those who may suffer from an accident-related loss of earning capacity.
Younger and healthier individuals generally benefit from lower premiums and better coverage options in private accident insurance. Early entry into private accident insurance leads to more favorable terms because risk-based premiums increase with age.
Civil servants, freelancers, self-employed persons, and high-earning employees (above the compulsory insurance threshold, approximately €69,300 per year) are eligible for private insurance. Some professions may have specialized tariff conditions reflecting their risk exposure.
Private accident insurance often offers broader coverage than statutory insurance, with tailor-made contracts allowing inclusion of alternative treatments, specialist care, private hospital rooms, and other special services. Coverage can also be adjusted with deductibles and extends to specific risks relevant to professions if agreed upon.
Premiums are set individually based on age, health status, coverage level, deductibles, and profession-related risk. While young and healthy clients may pay lower or competitive premiums, costs tend to escalate with age or increased risk from profession or health conditions.
In an emergency, an accident insurance should pay at least 500,000 € in the event of total disability. The tariff table determines the percentage of disability that a rate provides for various body parts, with the steeper the progression curve at a low disability level, the higher the payments and the better the insurance coverage for policyholders.
It is important to note that insurers may refuse insurance coverage if you already have accident insurance. Also, some insurances exist that do not pay out or only pay a reduced amount in case of an accident related to a pre-existing condition.
Insurers can extraordinarily cancel you as a customer after the settlement of a claim. Therefore, it's best to carefully assess benefits versus costs for different demographics and occupations before making a decision.
If you're considering cancelling your private accident insurance, it's best to do so in writing, usually with a notice period of 3 months to the end of the insurance year.
In summary, private accident insurance in Germany offers a wide range of benefits, coverage, and costs tailored to the individual's age, profession, and risk profile. Younger people in low-risk professions can benefit from cheaper, tailored coverage, while older or higher-risk professionals face higher premiums and potentially restricted coverage. The individual negotiation of contract terms makes comparing policies essential, often requiring careful assessment of benefits versus costs for different demographics and occupations.
[1] German Insurance Association (GDV) - Private Accident Insurance (https://www.gdv.de/en/products/private-accident-insurance/) [2] Bundesverband der Privaten Krankenversicherung e.V. (BdP) - Private Accident Insurance (https://www.bpd.de/themen/private-unfallversicherung/) [3] Bundesverband der Privatversicherung e.V. (BdV) - Private Accident Insurance (https://www.bdv.de/themen/private-unfallversicherung/) [4] Deutsche Rentenversicherung Bund (DRV) - Private Accident Insurance (https://www.deutsche-rentenversicherung.de/privatkunden/private-unfallversicherung/)
- In contrast to risk life insurance, personal-finance management may favor private accident insurance for those who fear accident-related loss of earning capacity, as it offers a wider range of benefits compared to traditional insurance.
- Compared to civil servants and high-earning employees, those in lower-risk professions, such as the younger and healthier individuals, might find better finance terms and coverage in personal-finance management with private accident insurance, due to lower premiums and more favorable contract negotiations.
