Insurance has always been complicated…and that’s when you spend your whole life living and working in just one country. How are you supposed to figure it out if you decide to expatriate yourself and live abroad like we have? We talked about making sure you have automobile insurance and how easy it is to set that up in Germany. But what about other types of insurance? What about health insurance? What about life insurance? Let’s break it down a bit.

 

Life Insurance

While optional, life insurance is something that most Americans choose to have. It’s good to have that protection for your family in case something happens to you, especially if you are carrying debt. These days, plenty of life insurance providers have decided to drop the mandatory health exam provision. This means it is easier than ever to pick a policy that works for you and your family. In fact, sites like BestLifeQuote.com walk consumers through the steps and help them compare different companies, rates and plans.

When you move abroad, however, things get complicated.

For one thing, the insurance policy you purchased in the US typically doesn’t cover you while you are outside of the country. A better bet, particularly if you’re hoping to live abroad permanently, is to work with your provider to cancel or cash in your policy and set up a new fund when you get there. If you are moving for work purposes, talk to your company about setting up a life insurance policy through them—they probably have the ability that will cover you at home, abroad and while traveling between the two.

 

Health Insurance

The United States is famous for its overly complicated health insurance system (yes, we get news about glitchy websites abroad). It might surprise you that Germany has had mandatory health insurance regulations as well as a marketplace system on the books for a while now. In fact, in Germany, you won’t be allowed to work or obtain residency status until you have health insurance set up. Moreover, a widespread “International Health Insurance” policy won’t usually be recognized in this country.

Other important differences here are that German policies don’t cover nursing care or work-related accident care. You have to contribute both to nursing care funds and retirement funds separately and those are deducted from your salary. Your insurance also won’t cover work-related injuries because your employer covers the cost of those. If you are rendered disabled, though, you have to pay for that yourself.

photo credit: Foxtongue via photopin cc

photo credit: Foxtongue via photopin cc

Sounding familiar US based friends?

Here’s where it gets better: in Germany you have access to a marketplace of more than 150 different insurance companies that offer private and public policies. You can build plans based on what you need (adding on extra services if you think you’ll need them). For most people, the hardest decision is just that—deciding whether you want a public plan or a private one. You’ll want to spend some time shopping around and looking at your current situation (some plans require you to meet certain criteria).  And in fact, it’s not a bad idea, if you haven’t already moved, to start learning about insurance before you make decisions on where to go. Some employers split your health care costs with you, and you’ll just join whatever provider they suggest. But there are many additional options out there, and going private comes with nice perks — but not without a price.

Keeping yourself covered if you get sick or irreparably injured (or even killed) is important no matter where you live. It’s easy to get confused even if you aren’t an expat! Find a good agent who can explain things to you and stay safe!

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