Which insurances are really necessary?

Which insurances are really necessary?

Which insurances are necessary and which can be optional? According to the Federal Statistical Office, German households spent an average of 1,596 euros per year on insurance. But which policies are really indispensable? Dr. Peter Grieble from the Baden-Württemberg consumer advice center explains that you should ask yourself which risks would hit you hardest financially. Health insurance and motor vehicle liability insurance are mandatory. Dr. Grieble emphasizes the importance of private liability insurance, as damage can be devastating in everyday life. Occupational disability insurance is also considered essential, as occupational disability can permanently jeopardize your income base.

A key focus should be on biometric risks, such as illness, accidents or need for care, as they can have serious financial consequences. Child disability insurance is crucial because serious illnesses or accidents can affect the life of a child and the entire family. Term life insurance is particularly recommended to avoid financial ruin in the event of the death of the main earner. Other useful insurance policies include residential building insurance and natural hazard insurance to cover property damage.

On the other hand, glass breakage insurance or smartphone insurance could be considered less important as they are not essential if financial losses are low. The choice of insurance often depends on individual financial priorities. Dr. Grieble encourages you to consider which risks are irreplaceable and where savings could potentially be made to ensure optimal insurance coverage.