German government collapse + Trump
There is a lot in the news about Trump's win and the collapse of the current German government. You must have already read about it. But here are a few of the most important things.
- The current government is working on many policies regarding private pension plans, child benefits, residual debt insurance, etc. These policies might get postponed or dropped due to the collapse of the government.
- Germany's political parties are currently divided by significant ideological differences. One (FDP) focuses on austerity methods, and the other (SPD + Green) promotes increased social welfare.
- The 2025 budget remains open. Olaf stresses borrowing more money to fuel the economy. On the other hand, Linder, the finance minister, is against borrowing and promotes cuts in spending.
Such wide ideological gaps make leading and executing decisions tough for any party. Top it up with Trump's stance on imposing import tariffs. This asks for the struggling German industry to prepare for a rough ride.
All these political changes will affect the job market, stocks, immigration, and social welfare policies. Only time can tell whether the effect will be positive or negative. However, the scale leans towards the challenging time ahead.
Term life insurance
A term life insurance policy (Risikolebensversicherung) pays your relatives an agreed sum (insured amount) when you die. Don't confuse term life insurance (Riskiolebensversicherung) with life insurance (Lebensversicherung) in Germany.
Term life insurance covers you for a fixed period. Life insurance, on the other hand, covers you for your entire life.
We find life insurance not worth it due to its low returns.
Why and who should you get it?
- If you are the sole earner in the family, you should get term life insurance. It ensures that your family's financial well-being is protected when you are not there anymore.
- If you have a mortgage and meet an untimely death, the real estate loan can become a financial burden for your partner. So, to protect your family's financial well-being and to ensure they don't have to sell the house, you should get term life insurance.
There are many other scenarios where term life insurance can protect your family's financial well-being. Thus, you should consider getting one sooner rather than later.
How much does it cost?
The cost of the term life insurance depends on your age, health, family status, and insured sum. The insurance costs around 20€ per month for a healthy 35-year married individual with a 500k insured sum.
Where can I get it?
Term life insurance is a simple product. You can get it yourself via Feather* or compare the plans on Tarifcheck*.
The chances for an insurance company to weasel out when claiming benefits are very low as the insured event (the death of the policyholder) is very clear. However, you should keep the following in mind when picking the insurance plan.
- The insured sum should be high enough.
- The insurance company's financial health should be good as the policy is valid for several years.
- You should be able to increase the insured sum without a health check.
- You should be able to extend the contract term without a health check.
- In case of early death, your family members should still get part of the insured sum.
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Stop paying high premiums
95% of the services offered by all public health insurance companies are the same. The reason is that the government regulates health insurers and ensures they provide the same coverage.
This is why locals switch to a public insurance company that charges lower premiums.
You can compare the premium you pay with your current public insurer and potential savings here.
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Change contracts to save money
Switching your electricity, gas, internet, car insurance, and other contracts can save you money. Companies and comparison portals offer various discounts to attract new customers. Switching your contracts can save you more than 1000€.
How do you do it?
- Simply compare plans on Check24 or Verivox.
- If you find a cheaper contract, sign up for it.
- The new company takes care of canceling your old contract.
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