A few Months ago an old client called me with a very bad news.
He has a brain tumor.
Although the situation was sad, I could give him a good message – no matter what – he doesn‘t have to worry about the financial situation of his family!
Why not?
10 years ago, this Client came to me at the recommendation of his best Friend. After our first talk, it was already clear to him that if he would get sick, so that he would be unable to work, he would be very fast in big financial troubles.
First, it was not clear to him that his employer pays him just 6 weeks for sickness leave. After 6 weeks, pays him his health insurance (Krankenkasse) further BUT just maximum 70% of his netto salary and for a maximum of 36 months. After this, he has just a right to apply for SocialHelp (so called Harz IV).
Second, it was also not clear to him that when he is not able to do ANY WORK, not even 1 hour a day, no matter of his level of education or experience FIRST then he has a right to get some incapacity pension from the Deutscherentenversicherung.
But he can get this just after working in DE longer than 3 years. The amount of incapacity pension depends on how long he has worked in DE not on how much he has earned.
The third „hot situation“ would have affected his wife if he would die.
Although they are married, it was for less than 10 years and without children; so if he dies, she has a right to get a widow‘s pension but just for one year. If they would have children, then she would get the money just until the children are working or finish their studies, until they are 25 years old at the latest. And the pension money, in best case scenario, would be also only around 60% of his salary.
But You know the Germans, for each of these cases they have solutions, and because 10 years ago the Client was healthy we obtained for him the following:
- „KrankenTageGeld – DailySickMoney“: it is a quite small and cheap insurance that pays the „missing“ 30% of salary for as long as the client is sick or max. 36 months.
- „Berufsunfähigkeitsversicherung – Occupational disability insurance“ – here You have a deal with an insurance company: You tell them how much money (max. 70% of Your Brutto salary) You need if You are not able to practice in Your profession ( for example, You cannot work as the Diplom.-Ing.) and for how long You want to get the money- (min. until 63 years old, max. until 70 years old)- ( this is the age bracket within which You must retire in DE). So the company insures You with Berufsunfähigkeitsrente, and You get it when You are not able to do 51% of Your job in Your profession. An additional note, Your doctor(s) decide if You are sick or not – not an employer from the gesetzlicher Rentenversicherung. And if You get the Berufsunfähigkeitsrente / disability pension, You can use it and live all over the world.
- „Risikolebensversicherung – risk life insurance“ if there is somebody in Your life who, after Your death, would have financial problems or You have to pay the mortgage back, then is a risk life insurance a „must have“.
The tumor is has been cut away..
My client has have had months of ergo and speech therapy. In this time, thanks to our talk for 10 years, he had his full netto salary -70% from the Krankenkasse and 30% from the insurance.
Because since the operation he has problems with concentration and cannot move his left hand, we applied 2 months ago for the Berufunfähigkeitsrente – disability pension- the acknowledgement and the money came already last week. So know he has every month around 90% of his old salary. He has time for his family, hobbies and getting health.
Yes, it is not nice to be seriously sick, but it is worse to be poor because of being sick.
And in DE, it is Your decision if You take precautions for the „worst case“.
