Ruin Protection: You Really Need These 7 Types of Insurance

Updated 09/20/2022 10:28 am

  • Energy, groceries, rents: prices are rising sharply everywhere.
  • This puts some in financial difficulty.
  • So where to save? About insurance companies?

More consumer topics can be found here

To make ends meet financially, many people these days have to put their spending to the test. The potential for savings remains latent, for example with insurance policies, such as a change in living conditions, the agreement of a deductible or the change to annual payment.

Some insurances are even completely expendable. But there are some that by no means should be terminated without replacement.

The expendables include all insurance “that only covers minor damage,” says Sandra Klug of the Hamburg consumer advice center. For example, glasses or mobile insurance. There are also 7 types of insurance you really need, partly depending on your life situation. They protect against damage that can ruin you financially:

Number 1: Personal Liability Insurance

Essential for everyone: In the event of an insured loss, personal liability insurance covers justified claims for damages based on personal injury, material damage or economic damage caused by the insured. “That can get very expensive quickly, especially when people are injured,” says Sandra Klug. However, the policy also protects against unjustified claims.

Number 2: disability insurance

Important for those who have a job: Anyone who can only maintain their own standard of living through their employment should definitely insure their workforce, with disability insurance. The policy pays if it is unlikely that you will be able to carry on your last occupation, as it was designed without long-term health problems.

Number 3: home insurance

Couldn’t you afford a total loss of your furniture and fixtures and associated new purchases? Then home contents insurance makes sense for you. It generally replaces the new value of your home’s furnishings if they are damaged, for example as a result of water or fire damage or theft.

Home insurance

According to the magazine “Finanztest” (issue 7/2022), the basic protection for household goods insurance is usually sufficient. Consumers should check out old policies, as they can often be converted to current terms.

Number 4: Term Life Insurance

Term life insurance is important for everyone who needs to protect surviving dependents, such as a spouse or their own children. If the insured person dies, the insurance pays the agreed amount to the surviving dependents. This can help, for example, to pay off remaining debt on a property.

Number 5: Health insurance for foreign travel

Useful for foreign travelers: health insurance for foreign travel. “It covers the costs of treatment abroad if the statutory health insurance does not pay,” says Julia Alice Böhne of the Federation of Insured Persons. The insurance also reimburses return transportation costs.

Number 6: home insurance

A must for homeowners: Homeowners insurance pays if your home is damaged or completely destroyed by fire, for example. It also covers all damage that can be caused by tap water and natural hazards such as storms and hail.

Number 7: Pet Owners Liability Insurance

Important for dog or horse owners: liability insurance for animal owners. Because these animals are not included in personal liability insurance, says Julia Alice Böhne. In complete contrast to cats or small domesticated animals such as mice, hamsters or rabbits.

Animal owners liability insurance covers damage caused by your own animals to others. In six German federal states (Berlin, Hamburg, Lower Saxony, Saxony-Anhalt, Schleswig-Holstein and Thuringia) this policy is mandatory even for dog owners.
© dpa


According to a survey by the Swiss Life insurance company, younger workers are more likely to suffer from depression than the older generation of baby boomers. In the 55+ age group, a good third (34 percent) have already suffered from depression. In the younger age groups 18 to 54, by contrast, between 38 and 40 percent said so. (Photo: picture alliance/dpa | Fabian Sommer)

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