Understanding insurance in Germany
Insurance in Germany can feel overwhelming. Here's an overview of the types that matter, what they typically cost, and how to evaluate what may fit your situation.
Your Situation
Where are you with your insurance coverage?
Pick what fits your situation.
The FinanceMate Approach
Smart insurance: only what you actually need
We help you cut the noise, not sell you products.
Start with the foundations
The foundation
Haftpflichtversicherung (personal liability insurance) and Berufsunfähigkeitsversicherung (occupational disability insurance) are widely considered high-priority. They protect your income and assets from catastrophic risk.
~€15–50/mo covers your biggest risks
Audit before adding
The anti-upsell rule
It’s common to end up with overlapping or unnecessary coverage. Before adding a policy, it can help to evaluate what you already have — through employer benefits, credit cards, and existing policies.
Many people pay double for what they have
Model long-term costs
Especially for health insurance
The GKV vs PKV decision isn’t about today’s premium — it’s about projected costs at 50, 60, and 70. Run the numbers before switching.
PKV premiums can reach €800+/mo at retirement age
How property investing works in Germany
If you’re paying €200–400/month more than needed on insurance, that capital could be redirected. Some people choose to invest it in rental property for equity growth and tax benefits.
Explore property investing
FAQs
Yes — health insurance is mandatory in Germany. You have two options: GKV (gesetzliche Krankenversicherung, or public insurance) or PKV (private Krankenversicherung, or private insurance). Employees earning above the Jahresarbeitsentgeltgrenze (€73,800/year in 2025) can choose PKV. The decision is complex and largely irreversible, so modeling the long-term costs carefully is generally a good idea.
The decision typically makes sense to explore if you’re above the income threshold and have run the full cost model — including projected premiums at 60, 70, and beyond. PKV is often cheaper when young and healthy, but can become significantly more expensive in retirement. Our GKV vs PKV calculator can help you explore the numbers.
Many professionals start with Haftpflichtversicherung (personal liability insurance) and Berufsunfähigkeitsversicherung (occupational disability insurance). Together these typically cost €20–50/month and cover some of the largest financial risks. Beyond that, coverage tends to be situational.
For high earners, it’s widely considered one of the most important policies. If you’re unable to work due to illness or injury, the German state pays relatively little. A BU policy typically replaces 60–80% of your net income. The younger and healthier you are when you take it out, the lower the premium tends to be.
Significantly — especially PKV. Private health insurance premiums typically rise as you age, and in retirement the employer subsidy disappears. It can be valuable to model your full retirement costs including PKV premiums before making any switch.
Many insurance products sold to expats may not be necessary: Risikolebensversicherung (term life — if you have no dependents), phone insurance, payment protection insurance, and accident-only plans (BU typically covers more scenarios). Reviewing your current coverage before adding more can help avoid overlap.