Energy, groceries, rents - prices are rising noticeably everywhere. This puts some in financial distress. So where to save? About the insurance companies? Better not on all of them, because some of them protect against unforeseen damage from tearing you into the financial abyss.
In order to make ends meet financially, many people currently have to put their spending to the test. Savings potential lies dormant, for example, with insurance policies - such as a change in living conditions, the agreement of a deductible or the switch to annual payment. Some insurances are even completely dispensable. But there are some that should by no means be terminated without replacement.
The dispensable include all insurances "that only cover minor damage," says Sandra Klug from the Hamburg consumer advice center. For example, glasses or mobile phone insurance. There are also 7 types of insurance that you really need - partly depending on your life situation. They protect against damage that can ruin you financially:
Number 1: personal liability insurance
Indispensable for everyone: In the event of an insured event, private liability insurance covers justified claims for damages based on personal injury, property damage or financial loss caused by the insured person. "That can quickly become really expensive, especially when people are injured," says Sandra Klug. However, the policy also protects against unjustified claims.
Number 2: disability insurance
Important for those in employment: Anyone who can only maintain their own standard of living through their employment should definitely secure their workforce - with disability insurance. The policy pays if you are unlikely to be able to practice your last occupation, as it was designed without health impairment, for the long term.
Number 3: home insurance
You couldn't afford a total loss of your furniture and furnishings and the associated new purchases? Then home contents insurance makes sense for you. As a rule, it replaces the new value of your home furnishings if they are damaged, for example, as a result of water or fire damage or a burglary.
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 out the agreed sum to the surviving dependents. This can help, for example, to settle the remaining debt of a property.
Number 5: Foreign travel health insurance
Useful for foreign travelers: the foreign travel health insurance. "It covers the costs for treatment abroad if the statutory health insurance does not pay," says Julia Alice Böhne from the Association of Insured Persons. The insurance also reimburses the expenses for return transport.
Number 6: homeowners insurance
A must for homeowners: Homeowners insurance pays out if your home is damaged or completely destroyed by a fire, for example. It also covers all damage that may be caused by tap water and natural hazards such as storms and hail.
Number 7: Pet owner liability insurance
Important for dog or horse owners: animal owner liability insurance. Because these animals are not included in personal liability insurance, says Julia Alice Böhne. In complete contrast to cats or tame small animals such as mice, hamsters or rabbits.
Animal owner 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 even mandatory for dog owners.
