Insurance Options in Germany

by CR & CIE

Getting insurance in Germany doesn‘t have to be a scary topic — neither for individuals nor for companies. In this article, we explain two convenient options for employees: company health insurance and company pension schemes.

Anyone who lived in Germany for more than three months knows how important insurance is here — for Germans and expats alike. In fact, one can find a wealth of information online on this subject, particularly about health insurance which is mandatory in Germany. However, navigating the plethora of insurance-related websites is not easy for an expat who only just moved here, and it can be discouraging for someone who plans a move to Germany to do a search online about “insurance in Germany”. This is why, at Expath, we partner with companies like Chambervelt, Rooselain & Cie who have the know-how and experience to help you find the right cover, and advise you on the advantages and disadvantages of the many options you have.

About the Author

Chambervelt, Rooselain & Cie is an independent insurance broker and has specialised in advising expats for years. We are not beholden to any company, but act in the best interests of our clients. As brokers, we have access to a wide range of insurance products and can find the best deal for you and your company.

Insurance Options for Companies

We often speak about insurance for individuals, but companies need insurance as well — albeit this is a different concept than for private entities. On the one hand, a company needs to cover for the very specific risks of its entrepreneurial activity. On the other hand, it needs insurance for its owners and employees.

  • Insurance for goods and property

Liability and propriety insurance cover companies against claims for damages from customers and protects the inventory against damage caused by fire, tap water or burglary, respectively. A company cannot insure itself against every entrepreneurial risk, but there is protection against financial consequences for many situations, and this is why getting expert advise is recommended and pays off.

  • Insurance for managing directors and employees

In addition to insurance for the company's assets or for protection against liability claims by third parties, there is also the possibility of insuring employees and managers. Here, company health insurance and company pension schemes are particularly relevant in Germany.

Company Pension Scheme

The occupational pension scheme is set up by the employer and belongs to the second layer of old-age provision in Germany. As an employer, you are obliged to offer the employee the possibility of a company pension. However, you are not obliged to pay the employee a company pension. But the employer has to pay a mandatory employer contribution to the salary conversion scheme amounting to a maximum of 15% of the portion of salary converted if social security contributions are saved.

These are the options for occupational pensions:

  1. purely employer-financed company pension

  2. mixed-financed occupational pension

  3. employee-financed occupational pension (with up to 15% compulsory employer contribution)

The occupational pension scheme is attractive for the employee from a tax point of view. It is deducted directly from their gross salary and no income tax is due on it. Thus, the gross amount is saved for the pension. In addition, the employee receives up to 15% subsidy from the employer. At retirement age, when the occupational pension is paid out, lower taxes are due and the employee benefits from the interest and tax effect.

Setting up an occupational pension is quite complex and requires a lot of advice. At CR & CIE we are happy to help you with this, whether you are an employer or an employee.

Company Health Insurance

In addition to occupational pension schemes, occupational health insurance is becoming increasingly popular. Statutory health insurance is standard in Germany and the only choice for many employees. However, the benefits are constantly being reduced. Not everyone has the option of taking out private health insurance. That is why company health insurance is a good supplement to insurance cover.

As an employer, you can choose from a variety of options for company health insurance:

  • dental insurance

  • hospital insurance

  • spectacles insurance

  • health insurance for abroad

  • or also budget tariffs, where the employee can use a certain amount for different benefits

The supplementary insurance is financed by the employer. Up to €50 per month are tax-free for the employee. For the employer, the bKV increases the attractiveness of the company and, in addition, the bKV reduces the average number of sick days in the workforce. Patients with supplementary insurance receive appointments with doctors more quickly and have correspondingly shorter periods of absence.

Independent Advice From CR & Cie

If you need assistance with any of these topics, simply book a no-obligation initial consultation with us and tell us about your situation. We look forward to hearing from you!

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