The private unemployment an alternative

In Germany, every worker is automatically covered by unemployment insurance. Self-employed persons may take out voluntary insurance. Further support may represent additional private insurance. But is it worth it?

Statutory unemployment insurance (ALV) is one of the great achievements of the German welfare system. The basic idea is simple: Each gross salary of state draws automatically a certain percentage of a. Someone loses his job by giving notice, engages the insurance benefit of the state, unemployment benefit will be paid. Currently, the insurance rate is three percent. He is January 1, 2011 increased slightly (from 2.8 previously). Upon termination by the employer or the Terminated gets at least up to 67 percent of their last net salary. For a maximum of twelve months, provided you have long paid enough.

It is crucial for many to be able to maintain the standard of living during unemployment. And herein lies the problem often. Because even the full respect of the general 60 or a maximum of 67 percent of the most recent net salary represents a substantial financial incision. And by the current legislation you slide after twelve months ALG I-reference in the basic insurance - also known as Hartz IV and ALG II, the amount of salary plays a role. Even then, if you want additional private provisions.

Here the possibility of private insurance is added. Because, as in the health insurance and the pension that citizens are increasingly called upon, more private provision. In the state alone can not build one. And certainly many people wonder in the wake of precarious work, globalization effects on the labor market and in view of the recent financial crisis, whether they are adequately protected when they lose their jobs. Private insurance against unemployment bidding an addition to the state grants, similar to private health insurance. An additional non-state unemployment insurance with an insurance company can be the right supplement exactly.

The first deals for private insurance in this field came on in the nineties. The insurance companies took up this new theme, and brought many different insurance modules on the market, but who has since been re-adjusted a bit. But still it remains an issue in uncertain times. Basically, it works so that the insurer takes over the difference between the old net salary and state unemployment benefits. That sounds initially interesting for everyone. One has but to look at the deals the insurer exactly and count each for their own case. Because today is how to know the insurance companies, the risk of job loss is far greater than a few years ago. And that alone is reflected in the monthly tariffs, the insured has to pay in good times, when he has a steady job. Depending however, how high or low the salary fails, remains under circumstances not enough idiots about to pay an amount in the necessary amount. Under certain circumstances, so it has the Stiftung Warentest counted once through, it may even be cheaper in the end to put a little each month into a savings account or other savings vehicle and just live off the interest-bearing savings in unemployment.