Insurance coverage for personal accidents: Is it worthwhile or not?
In Germany, with around 10 million accidents reported annually, private accident insurance can provide valuable protection beyond statutory coverage for work-related incidents. Here are some essential factors to consider when deciding whether to take out private accident insurance.
Coverage scope is a critical aspect to consider. Statutory accident insurance only covers work-related accidents, whereas private accident insurance offers additional protection, including leisure time activities and worldwide coverage, which can be particularly important for those who travel or engage in sports.
Compensation benefits are another crucial factor. Private policies calculate compensation based on injury severity using a system called *Gliedertaxe*. Some policies also provide additional services such as therapy or household help during recovery.
Cost and premium sharing are also important considerations. Premiums depend on coverage level and risk profile, with group policies negotiated by employers often being more cost-effective than individual plans. Premiums may be shared between employer and employee.
Tax implications are another factor to consider. Employer-paid premiums may count as taxable income, but if part of a group plan and below €100 per year, taxation can be limited to a flat 20% rate. Employer contributions for business-trip accident risks may be tax-free in part.
When evaluating policies, it's essential to understand the details of the tariff table. A good accident insurance policy should offer comprehensive protection, benefits from 1% disability, tariffs with progression, appropriate benefits, and extended deadlines for the onset and recognition of disability. An accident pension is typically only available for a disability rate of at least 50%.
Personal situation is another critical factor. Consider your job, lifestyle, travel habits, existing statutory insurance, and whether you participate in high-risk activities in leisure time that may not be covered otherwise.
It's worth noting that, in less than 2% of all cases, an accident is the main cause of a severe disability. Disability is caused by an illness in 90% of cases, not an accident.
For older people, accident insurance can become expensive due to the increased risk of permanent disability. Insurers may exclude permanent damage related to pre-existing conditions like arthritis or gout for retirees.
Different insurance companies may pay out different amounts for the same body part loss due to their own tariff tables. Accident insurance pays out if permanent damage remains after an accident. Some insurers offer family accident insurance.
Children and young people are insured by kindergarten, school, and university for accidents in the respective facility and commuting accidents. Employees are insured by their employer for work accidents and commuting accidents. Only private accident insurance covers accidents that occur in the household, during private stays on the road, or in leisure time.
After cancelling an accident insurance policy, the costs can be claimed in one's tax return under "Provisional Expenses." Risk life insurance is suitable for securing the provision for one's partner or children in the event of one's death.
In conclusion, private accident insurance is typically beneficial if you want protection beyond workplace accidents, especially for leisure and worldwide risks. However, evaluating costs, benefits, and taxation relevant to your employment situation is essential.
- When considering personal-finance management, understanding the coverage scope and benefits of private accident insurance is essential, as it offers protection during leisure time activities and worldwide, unlike statutory insurance.
- Additionally, for those seeking personal-finance solutions that cater to their unique situation, private accident insurance may be a valuable investment, providing compensation based on injury severity and additional services like therapy or household help during recovery.
