Term Life Insurance, a Priority for the Expat in Germany
Living in Germany brings a few challenges for the expat. Not only do you have to negotiate the language and the culture you also have to get to grips with the German insurance system, which to anyone whose experience of insurance has largely been confined to the UK can seem incredibly complicated.
Yet, once you overcome your unfamiliarity, and get your head around the innumerable syllables of all the various "komposita" involved, you may be able to take advantage of the system so that it works in your best interests. Finding an expat wealth management specialist who has familiarity with the system and the products on offer is likely to be part of the solution to finding the cover that is best suited to your needs.
For example, finding risikolebensversicherung (term life insurance) is about securing cover for all of life's eventualities so that your family and other dependents are properly looked after in the event you die before they do.
Expats will need to be wary of insurance agents attempting the "hard sell" because, sadly, some unscrupulous agents will use the risikolebensversicherung sales pitch as an opportunity to sell other products that may be superfluous to your individual needs – for example, education insurance, passenger accident insurance or travel luggage insurance.
Unfortunately, the unique and complex German system together with the sheer variety of products on offer, mean that it can be difficult to ascertain which policies are necessary and which are not. This is why securing local and professional insurance advice from an independent broker who has experience of the broader German insurance market can prove invaluable, particularly if the adviser can help you understand how cover fits in with a broader portfolio of potentially beneficial insurance products – for example, your health, contents, accident, legal, pensions, property and vehicles cover.
Too many insurance agents sell products on a commission basis, meaning that the client's needs run the risk of becoming secondary to those of the salesperson, so receiving advice from Germany-based wealth management specialists can be a good way of finding out exactly which products will be best for you..
Blacktower advice for expats in Germany
For clients who come to us unsure about what they need in respect of Term Life Insurance (risikolebensversicherung), our first priority is to find a product that will provide reliable cover to their loved ones in the event of death.
Typically this means that, at the very least, the policyholder would have enough cover to settle the balance of any outstanding loans and mortgages. However, in most cases it is also prudent to provide your family or other named beneficiaries with an additional financial cushion at the time of your passing.
We can also help you decide how long you would like your cover to run because it can be difficult to know how to strike the right balance between length of cover and cost of cover.
For help finding the right life insurance cover for your needs contact Blacktower today; Germany wealth management advice from specialists with local knowledge, who understand the dilemmas faced by expats.