A LeX-Wealth guide to three essential types of insurance in Germany

Relocating to Germany is more than just packing your bags; it also means learning how to manage within a system that runs on precision, paperwork and policies. As a new arrival, one of your most urgent tasks is ensuring you have the right insurance cover in place, not just to meet legal requirements, but to protect yourself from serious financial risks.

This guide breaks down the three essential types of insurance every expat needs. If you need to talk your options through with someone, LeX-Wealth provides expert, independent guidance on your financial protection, without bias, without language barriers and without unnecessary costs.

 1. Health insurance (Krankenversicherung) 

If there’s one insurance policy you must prioritise immediately, it’s this one. Health insurance is mandatory for every resident in Germany, and your visa will not be approved without valid coverage. There are two systems that operate in Germany:

• Public health insurance (GKV)
• Private health insurance (PKV)

Depending on your circumstances, you may be automatically subscribed to one, but it's worth taking the time to understand both options.

Public health insurance (GKV) 

• Contributions are based on income level 
• Covers most medical needs (GP visits, hospital stays, basic dental care) 
• Dependents (spouse, children) can be included at no extra cost 
• Mandatory for salaried employees earning under ~€73.800 per year (in 2025)

Private health insurance (PKV) 

• Premiums are based on age, health status and chosen coverage 
• Faster access to specialists and private clinics 
• Often more cost-effective for high earners and freelancers
• Must be chosen carefully as switching back to public insurance is very difficult 

Why expert guidance matters 

Choosing the wrong system can lead to several negative consequences, including paying too much, being locked into inflexible contracts, delays with visa approval or job onboarding or being denied coverage due to pre-existing conditions.

LeX-Wealth works independently across the entire market, including top private and public providers, to recommend what’s genuinely best for you, not what pays the highest commission. Talk to them today to get expert help choosing the right health insurance.

Talk to a LeX-Wealth advisor today to find the right insurance plan for you

2. Personal liability insurance (Haftpflichtversicherung) 

In Germany, personal liability insurance isn’t technically mandatory, but culturally, it might as well be. Nearly every local has it, and if you’re renting an apartment, especially a furnished one, which is often the case when you first arrive, your landlord will likely ask for proof that you have liability insurance before handing over the keys.

What personal liability insurance covers

With personal liability insurance, you are protected if you accidentally: 

• Injure another person
• Damage someone else’s property
• Cause a costly accident (for example, if a water leak from your rental damages the downstairs neighbour’s flat)
• Need legal support for claims against you 

If you are from a country where this type of insurance is uncommon, you might wonder if you really need it. Some cases that LeX-Wealth sees regularly are red wine being spilled on other people's white couches, glass stovetops being broken in furnished rentals, or children scratching parked cars with their bicycles.

Even minor mishaps can quickly become expensive in Germany. These policies typically cost €4–€7 per month, with cover limits as high as €50 million. They're one of the best-value safety nets you can have.

LeX-Wealth helps expats choose reliable, English-friendly policies that work for both furnished and unfurnished living situations, and make a good impression with landlords, too. 

3. Income protection insurance (Berufsunfähigkeitsversicherung)

Income protection is perhaps the least discussed but most financially critical insurance for working professionals in Germany.

What income protection insurance is for 

If you can’t work due to illness, injury or psychological burnout, this policy pays out a monthly income, helping you stay afloat financially even if you're unable to earn. 

Without private coverage, you may only receive a small state benefit, often not enough to pay rent, support a family, or maintain your lifestyle.

This insurance is ideal for: 

• Freelancers and self-employed expats, who aren’t covered by the state 
• High earners, who want to maintain their living standard 
• Anyone without five years of contributions to the German social system 

LeX-Wealth builds fully customised income protection policies based on your profession, health and long-term plans. They can also offer add-ons for early retirement, accident disability and more. 

Start strong with the right cover in place 

There’s a lot to manage when you relocate, with appointments to attend, systems to navigate and decisions to make fast. It can be tempting to just get something, anything, in place to get it off your list. However, insurance is not just a box to blindly tick. 

LeX-Wealth have helped hundreds of expats confidently set up their insurance and financial plans from the start. Getting these essentials right now means fewer problems later. Talk to an expert and make sure you get off to a good start in Germany.