News Private long-term care insurance: necessary or a waste of money?

News Private long-term care insurance: necessary or a waste of money?

finanzen.de News always well informed

Friday the 01.07.16 , written by Jessica D’Ovidio Is private care insurance really necessary? The Bremen financial analyst Volker Looman answers this question extremely critically and with many figures in the online edition of the Frankfurter Allgemeine Zeitung. These should show that not a long-term care insurance but the will to save is the right precaution for old age. >

Pflegeversicherung: Notwendig und individuell abgestimmt Timely provision protects against financial distress in case of care

Is a long-term care insurance required? It is not necessary for the financial analyst Looman. He goes even so far that not even persons who have no private reserves for the care case, provide with a private long-term care insurance in case of emergency. In his opinion, much more important than this insurance is a lack of consumption and the will to save . This would be best prepared for the age. The analyst appeals to the individual responsibility of individual citizens and prefers to increase the contributions of top earners for the statutory long-term care insurance. But with private savings plans, everyone can equally close the high cost gap , which arises in the care case?

Attention: Only very few people are willing to give up consumption. Even saving is difficult for many. Correspondingly large is the risk that the reserves set up for the care case will be spent on other things. With a private long-term care insurance, the money earmarked for care provision actually benefits this goal. With a non-binding offer for long-term care insurance, you can find out which tariffs belong to your shortlist.

Private care insurance necessary or rather sell the home?

Depending on the degree and duration of care, the care costs can result in a pension gap of several thousand to one hundred thousand euros after ten years. But these figures are not as dramatic as they look. After all, people in need of care could sell their own home – anyone in need of care will not have any more, Looman says. On the other hand, how people should raise the money for care, who do not have their own house, remains open.

On the other hand, if you do not have your own fortune, you should rely on the state . A private care insurance would therefore hardly necessary. If necessary, the children are dependent. However, studies show that many elderly people do not want to be a burden to their children. Accordingly, “private supplementary care insurance may be useful in individual cases to provide for the private expenses in the care,” explains the consumer center Saxony-Anhalt.

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When is a private long-term care insurance required?

Consumers should always provide collateral for old age and sickness – that is what the financial expert advocates. He is certainly right. But why, of all things, the private nursing care insurance should not be necessary, but where just she takes into account the peculiarities of nursing , is not presented in sufficient detail.

For example, the financial expert disregards a feature that is characteristic of insurances: they are safeguards for the uncertain case , which nobody knows if it will actually happen. If, for example, an insured person unexpectedly suffers a stroke at the age of 55 and becomes a long-term care case, he is in any case financially secure with long-term care insurance. This happens regardless of how much the person concerned has previously spent on retirement or long-term care.

Prefer savings plans of private long-term care insurance?

Another drawback in Looman’s calculations is the optimistic estimate of interest rates on private savings plans . He reveals how insurers are calculating to provide their insured with benefits that translate into just under six percent return on their paid-in contributions. He himself assumes that private individuals have this chance of winning. However, with fixed income or very safe term deposit accounts, such return prospects are unrealistic. Looman therefore indirectly recommends private individuals to invest a little more risk – for example by investing in equities or real estate. However, those who have to resort to the money they have invested overnight can also be unlucky with their returns during a stock market slump. Here is a private care insurance makes more sense.

Long-term care insurance: benefits can not be substantiated by numbers alone

No one wants to give up financial lethargy just because he saves money on long-term care. But the author wants to motivate the readers. However, he advises to financial measures that can be quickly thwarted by unforeseen blows of fate. In such a case, those affected must really sell the apartment or house, or let the state pay for the care. For many people, for example, the task of their own home, where the memories of the whole family hang, but only the very last resort. The emotional burden , which then comes next to the nursing care on those affected, overlooks the analyst.

  • Here you will find tips and more information on private nursing care insurance. >
  • Jessica D’Ovidio
  • editorial staff

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Question of the week: What’s wrong with the GroKo for employees?

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news Question of the week: What's wrong with the GroKo for employees? finanzen.de News always well informed Friday, 09.02.18 , written by Julia Meier After the longest government formation of all time there is clarity in this country: In the negotiations on the Grand Coalition (GroKo), the SPD and the Union have now agreed on the last issues and have finalized the draft for the coalition agreement. Especially workers benefit from some innovations of the future government and are partially relieved. > Der neue Koalitionsvertrag könnte für viele Arbeitnehmer für finanzielle Entlastung sorgen The innovations at GroKo look promising for employees

  • After weeks of negotiations, SPD and CDU / CSU have also agreed on the last few points in the coalition agreement for the GroKo.
  • The contract provides for a number of changes that will benefit employees in the future.
  • Changes in statutory health insurance, taxation and pensions provide greater financial relief for many workers.

The draft of the coalition agreement for the new grand coalition stands. After weeks of negotiations, both parties have now created a framework for the new government. Above all, the financial relief of citizens was always a big topic. Whether at Baukindergeld, Solidaritätszuschlag , in the pension or the statutory health insurance : In many areas, employees can look forward to more money in the future.

GroKo ensures the return of parity-financed health insurance

Good news for workers is in health protection. Because SPD and Union have agreed in their talks on the return of a parity-financed statutory health insurance. For insured persons, this means that, in addition to the general contribution rate of 14.6 percent, half of the additional contribution determined by the health insurance companies will be borne by the employer . The average additional contribution of the statutory health insurance is currently at 1.0 percent.

Employees are thus relieved of the statutory health insurance on average by 0.5 percentage points. With a monthly gross income of 3,500 euros, this is a saving of 17.50 euros. The changes are expected to start on January 1, 2019 .

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Taxpayers should benefit from the reduction of the soli until 2021

In addition to increasing the basic allowance to 9,000 euros per year for singles and 18,000 euros for married couples, workers could in future also benefit from the reduction of the solidarity surcharge (soli) .

The plan is to relieve taxpayers from 2021 to ten billion euros . For the Union and SPD, this is a measure that affects 90 per cent of all workers who pay the soli contribution. The contribution should be gradually phased out. Singles with an annual income up to the exemption limit of € 61,000 are completely exempted from the contribution payment. From this limit, the soli-contribution is then skipily abolished . According to calculations by Handelsblatt a single with a monthly gross income of 4,000 euros would have 692 euros per year more in the bag . However, when and in what form this change will take effect at the end is not yet known.

Low earners should be guaranteed a basic pension

The introduction of a Solidarrente was an important point for the SPD in the context of the soundings. This should give greater recognition to employees, especially low paid workers, who have paid pension insurance for at least 35 years. The time they took care of raising children or caring for relatives is included.

If a claim to the basic pension exists, it should amount to ten percent more than the basic state security in old age . Depending on the region, retirees can expect to spend more money each month. However, it is still uncertain when the measures to implement the basic pension will start.

Baukindergeld can relieve more than 200,000 families

In the future, parents with children will not only benefit from the increase in child benefits, which is to be increased by ten euros from 1 January 2019 and by another 15 euros from 1 January 2021 . According to the new plans, the government wants to support families in the construction or purchase of their own four walls. Accordingly, the so-called Baukindergeld, which existed until 2006, reintroduced. Families receive an annual subsidy of € 1,200 for each of their children for a maximum of ten years.

The Baukindergeld should be entitled to families with an annual gross income of up to 75,000 euros plus a tax allowance of 15,000 euros. According to the Finance Ministry, more than 200,000 families will benefit from government support in the future.

Nursing professionals should benefit from GroKo changes

Anyone working as a caregiver can look forward to the improvements in the new GroKo. In addition to the optimization of working conditions , the payment of employees in the health and elderly care is adjusted.

Measures for this are area-wide collective agreements . The changes in the employment contracts and the adjustment of the minimum wage in East and West Germany , nurses can look forward to a little more salary in the account. However, the concept is already heavily criticized, as it would burden the needy more than before and also the creation of new foster homes could not remedy the existing state of emergency.

Here are tips and more information about the investment. >

Julia Meier

editorial staff

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