Life Insurance Value. If you have to terminate life insurance prematurely, the insurer will reimburse the surrender value. Since there are high cancellation costs, this is a loss for the insured.

Financial bottlenecks or serious illnesses cause insured persons to terminate their life insurance policies early. This happens much more often than most people think. Experts estimate that every second life insurance policy is cancelled early. Before you cancel, you should carefully check that there are no alternatives to this step. The surrender value achieved is well below the sum of the capital saved, as high cancellation costs are due.

Factors that play a role in calculating the surrender value:

  • -Sum of the contributions paid
  • -Accrued interest
  • -Term of the contract
  • -Commissions, administration and risk costs

Calculation of the surrender value

The acquisition costs are initially deducted from the so-called reserve capital – these are the contributions you have paid into your life insurance. Since these are very high, you will get nothing if you cancel after a short term. The amount of the cancellation costs is around 1% of the sum insured. The calculation of the minimum surrender value has been regulated by Section 169 of the Insurance Contract Act (VVG) since 2008, as the calculation repeatedly leads to disputes between the contracting parties. In the case of contracts concluded between 2001 and 2007, the surrender value must be at least 50% of the cover capital.

Information about the amount of the surrender value

There are some portals on the Internet with which the insured can determine the surrender value of a life insurance policy. To do this, you need to provide the name of the insurance company, amount, start time and last premium payment. However, the surrender value calculated in this way should only be used as a guide. Only your insurer can tell you the exact amount of the surrender value.

Alternative to terminating life insurance

It is possible to sell life insurance under certain conditions. Since buyers are based on the intrinsic value of life insurance, the sales value is around 5 – 15% above the surrender value. You have a chance of finding a buyer if the surrender value of your life insurance is at least 10,000 euros and has a remaining term of 15 years.

However, since there are also black sheep in this market, you need to be careful and examine offers carefully. To be on the safe side, you should find out whether the buyer is a member of the Federal Association of Asset Investments in the Secondary Life Insurance Market (BVZL).

Insured or Not? Good travel insurance could be even more important than usual in Corona times. However, there are particularly many conflicts in this area when it comes to settling claims.

Optimists who book a vacation trip in view of the reports of planned border openings and other easing of the corona restrictions are taking a certain risk. The death of a close relative or the loss of a job would be just two of the hopefully not occurring scenarios that could force you to withdraw from your trip or to interrupt your trip. For protect yourself against such financial losses, there is travel insurance. When purchasing travel insurance, you should read the terms and conditions carefully.

Important travel insurance in Corona times:

-Travel cancellation insurance: reimburses cancellation costs in full or in part if the trip cannot be commenced due to death, unexpected illness or serious accident injury, for example.

-Travel interruption insurance: reimburses additional costs incurred if the insured has to leave prematurely, for example, because of unexpected serious illness or death of a close relative or significant property damage.

-Travel health insurance: fully or partially covers medical and treatment costs abroad.

Insured or not?

Anyone who takes out travel insurance thinks they have made good provisions. If the insured cannot commence the trip or if he has to leave early, there is often a risk of trouble with the insurance company. If the insurance company refuses to cover the costs, you should contact the insurance ombudsman. In 2019, ‘Other Insurance’ – which includes travel insurance – was the only line of insurance where consumer complaints increased.

The good news: the success rate of complaints is high. Almost two-thirds of those insured who complained to the ombudsman about such insurance received the insurance benefit in full or were able to reach an agreement with the insurer.

Every detail counts

An insurance company often refuses the benefit because the illness was known when the insurance was taken out. As a rule, the insurance covers ‘unexpectedly serious illnesses’. For example, a couple canceled a booked trip because the husband had to be hospitalized shortly before the start of the trip because of a heart problem.

The man had been suffering from cardiac arrhythmias for a long time, but according to the doctor, he had been stable for several months and was active in sports. In this respect, the acute complaints occurred unexpectedly. The insurance company accepted the ombudsman’s explanation and assumed the cancellation costs.

Employer Funded Pension. Company pension schemes are becoming increasingly important in Germany. Which form of provision offers the individual the best protection at favourable conditions depends on various factors.

Company pensions have a long tradition in Germany. In the past, this form of retirement provision was a voluntary service offered by employers to their workforce in order to strengthen their loyalty to the company. In recent years, company pension schemes have been regulated in several steps. Today the company pension is an essential pillar of the pension insurance in Germany. The second pillar of the pension system is becoming more and more important for most employees, as the benefits from the statutory pension insurance are no longer sufficient to secure the accustomed standard of living in retirement. Every employee has a statutory right to a company pension.

Entitlement to a company pension

Since 2002 every employee has been entitled to a company pension if they are willing to convert part of their wages.

Part-time and marginally employed employees who are subject to compulsory statutory insurance also benefit from the right to deferred compensation.

Employees with salaries above the income threshold can also benefit from the company pension scheme.

How is the company pension funded?

There are differences in the design of company pension schemes in individual companies. If you are employed in a company in which the employer alone pays the contributions for the company pension, there is no reason to turn down this attractive offer. If the employer and employee share the contributions, this is usually also an advantage for the employee. If only a deferred payment is possible, you have to calculate exactly which contribution amount is worthwhile. In this case, you pay the contributions alone, but reduce your deductions from the gross wage. As a pensioner, you have to pay taxes and contributions to statutory health insurance for the company pension.

Forms of company pension schemes

How the employer regulates the implementation of the company pension is largely up to him. Five variants are established. External insurance models are direct insurance, pension funds, pension funds and relief funds. With these coverage models, the pension provider that provides the promised benefits is independent of your company.

In the case of company pension schemes through direct commitment, your employer has an obligation. He has to build up reserves to guarantee the financing of the company pensions. These reserves appear on the company’s balance sheet.

Optimization through the total remuneration approach

However, its full effectiveness only unfolds when a high wage and salary strategy is applied through wage optimization.

When optimizing remuneration using remuneration modules, the employer and employee can jointly decide to exchange part of the gross wage for tax and social security subsidies in kind and cash. This increases the employee’s net income, and the employer incurs fewer ancillary wage costs.

In combination with the company pension plan, it is possible to create a higher pension with significantly lower net expenditure.

The interplay of labour, tax, collective bargaining and social security law must be observed.

It is therefore advisable to turn to proven experts in this area.

Employer Funded Pension

Open a depot: How to get started

Online Broker: Part 2 Open a depot: How to get started. Of course, for securities trading you need an account through which securities transactions, i.e. buying, selling and transferring, are processed and through which the stocks are managed. Opening a custody account is in itself not a big deal. It hardly differs from opening another account, even if the product itself is a bit more complex than, for example, a call money account.

To open a securities account, you usually fill out an online form on the online broker’s website within minutes. As a new customer, you usually have to confirm your identity using the PostIdent procedure, i.e. present your ID card once at a post office.

Online Broker: Part 2, Open a depot: How to get started

Online broker comparison

As mentioned above, an intensive comparison should first be made. From the abundance of banks and brokers, you should select the most suitable offer and consider aspects such as order costs, trading options, types of securities, collateral and service.

Deposit application

Once you have found a suitable online broker, you can submit a deposit application. To do this, enter your contact details on the website according to the instructions. As part of the Securities Trading Act (WpHG), you can expect to be asked about your stock market experience. You will be checked for stock market knowledge and experience – the information you provide is voluntary. Once the securities account application has been completed, it must be checked and confirmed.


To check your personal details, you must have your identity confirmed via the Postident procedure. To do this, go to a post office and present the deposit application and your identity card. The employee in the branch then initiates all necessary steps and ensures that the identity confirmation and opening application are sent to the online broker.

Depot activation

It usually only takes a few days to receive a deposit confirmation. This is always sent by post and contains all the necessary information about the depot as well as the access data for the account. Be sure to keep the data in a safe place. You can use the data to log into the new account. After successfully logging in, nothing stands in the way of the first order.

How to buy your first securities

After you have activated your portfolio, you can place your first order at any time. To do this, go to the desired trading venue and search for the desired security. Every security has the so-called International Securities Identification Number (ISIN), which can be compared to an article number. Simply enter this code in the search function on your online depot and select everything else according to the online form.

Inform yourself before placing your first order with the online broker

As a beginner, you should find out about suitable trading venues and other aspects before placing your first order with your online broker.

Is it easy to change a depot?

Should you ever be dissatisfied with your provider or your depot account, you can simply switch. A distinction must be made between whether you are only changing the depot and staying with the same provider or whether you are changing the online broker.

Change of securities account with the same provider

Switching a portfolio with the same broker is usually very easy. As a rule, the brokers have forms for changing securities accounts in stock, so that everything can be done quickly and easily. A request to customer service initiates all steps.

Change of creditor

A change of creditor is also an option with minimal effort. The deposit remains in place, but the owner changes – often there is a change of creditor in the context of inheritance or donation.

Online broker change

If you change not only the depot but also the online broker, it becomes a little more complex. The deposit day is often controlled by a central securities depository. This serves as an interface between the online brokers. The securities depository bank Clearstream Banking AG holds securities for the German capital market. If a customer initiates a securities account transfer, the contents of the securities account are booked by the central securities depository from the old to the new online broker.
Before transferring a securities account, contact the new broker – they will usually provide you with a ready-made form for the transfer and give you all further information.

There are no costs for transferring securities accounts

No costs may be estimated for the transfer of the deposit, as confirmed by a judgment of the Federal Court of Justice (BGH) (AZ XI ZR 200/03). This applies both to changing an entire securities account and to transferring individual securities. It does not matter whether the transfer of the securities takes place when the securities account is closed or as part of a continuing business relationship. Only external fees from custodians can occur. However, many online brokers take on such external fees as part of good service.

Inquire with your online broker here and request a written list of all costs.

Avoid multiple taxations

When transferring the securities account, make sure that the acquisition data (purchase date and purchase price) are also transmitted from the old to the new broker. Otherwise, there could be unwanted multiple taxations, as the transferred securities could be viewed as new cases and taxed at a flat rate.

Who is an online broker suitable for?

An online broker is the cheapest and easiest way to access securities trading. In principle, any private person can hire an online broker. However, using an online broker is not suitable for completely inexperienced investors if the trades are carried out on their own. Without knowledge of the stock markets and experience in securities trading, as a complete beginner, you should not simply “trade on them”. As a beginner, use a reputable online broker who not only provides you with the depot but also actively supports you as a consultant and administrator. For absolute beginners, the account manager of the house bank, in the role of advisor, is possibly the better choice. If you have gained experience in trading, the step to an online broker can be the right one.

Deposit with a foreign online broker: makes sense?

A deposit with a foreign online broker may be cheaper than a domestic deposit. The reason for this is the final withholding tax for capital assets, which in Germany is 25 percent. This amount is automatically forwarded to the tax office after a share has been sold.

If you are now with a foreign online broker, this automatic transfer does not usually apply. You then usually have to pay the final withholding tax yourself via the annual tax return. Although this is associated with more effort, it also has the advantage that you can speculate with taxes until the end of the year. In principle, many foreign online brokers are cheaper on their respective home markets than German competitors. Here, too, you should first compare.

How to Compare LTC Insurance Policies. Long term care insurance policies help provide for the cost of long-term care required for an extended period of time due to old age, chronic illness or disability. It covers care not generally covered by Medicare or Medicaid. Insurance companies around the country offer different long term care policies, thus, it is vital to compare each policy from one provider to another. Here are some tips that will help you compare LTCi policies and find the best fit for you.

Cost of Insurance

Generally the cost of long term care insurance is based on your age at the time the coverage starts and the type of coverage you choose to have. Your place of residence also affects the premium. Another factor that adds to your LTCi cost is the inflation protection rider. Inflation protection is a very useful addition because it protects your policy against the rising cost of care. To compare costs, you can request for a long term care insurance quote online.How to Compare LTC Insurance Policies

Compare Long Term Care Insurance Coverage

How to Compare LTC Insurance Policies

Choose a long term care insurance provider that offers a wide variety of care options like assisted living, home health care, nursing home care and adult day care. Since caregiver costs are expensive, find out if the policy covers in-home care. Also, make sure that the “assisted living” clause is defined broadly in the policy.

Evaluate Payment of Benefits

Another important aspect you must consider when comparing LTCi policies is how providers pay the benefits. Determine from each provider the benefit eligibility criteria that you must meet before the company will pay the benefits. Usually, these are based on you function everyday like how many activities of daily living (ADLs) you are unable to perform or whether you have a cognitive impairment. Examples of activities of daily living or ADLs are bathing, eating, dressing, using the bathroom, continence, and moving from a bed or chair.

On a national scale, the median annual cost of a nursing home’s private room is $90,520. Since 2012, the cost of home health aide services also has risen by 2.3 percent. With long term care (LTC) costs becoming more expensive every year, it is important to plan ahead how you plan to pay for long term care services as early as possible. Aside from using your savings or qualifying for government funded long term care insurance like Medicaid, long term care insurance can help ease your worry about long term care expenses.

Have a Secure Life after You Retire. Are you retired already? Are you still working, but you are near retirement age? This is the time to make plans for your future when you cannot work anymore.

Retirement plans can be claimed from ages 62 to 70. You may be content with your retirement payments as a reward for your previous work and for reaching senility. However, you can even increase the money from your retirement plans. Emily Brandon, an author of retirement and social security articles in US News, shares these tips to secure your retirement. Have a Secure Life after You Retire

Have a Secure Life after You Retire

The stages

  1. Just Wait, and Get it Later
    The Social Security Administration notes that 66 years of age is the right time to get maximum amount of Social Security. If you claim it at a younger age, you will receive less. As a retiree, you do not have to rush with your retirement payments unless you need them immediately.

If you have a healthy body and lifestyle, you can even delay collection of your financial benefits. Daniel Goldie – the president of Dan Goldie Financial Services in California – mentions that as you get older, the amount of your retirement money increases. He adds that as years pass, this growth will not stop.

  1. Not One, but Two Claims
    You can benefit from two types of retirement payment. One is based from records of your previous work. The other is based on payments that can reach half the money received by the higher-earning spouse. This tip is applicable for people of married status. However, some retirement plan providers may require you to be married for at least 10 years.

In fact, you can claim them both – although not at the same time. One way is to receive spousal payments, and delay your retirement compensation. When the latter has accumulated, this may be the right time to acquire it.

  1. Take Care of your Medicare
    When you are eligible for retirement, sign up to Medicare as soon as possible. You may even subscribe three months before you turn 65. By delaying Medicare, you may increase your premium costs by 10 percent per year since the eligible retirement age. Your job before retirement may include health insurance plans. If you are still working, take note to sign up eight months before retirement to avoid penalties.
  2. Control Your Spending
    Retirement payments enable you to sustain yourself while not working. However, it is better to avoid constant or mismanaged spending. A time may come that you lack the money to sustain yourself, and consider that you are a retiree. Gordon Tutor, a certified financial planner for Wealth Analytics, advises to carefully assess your expenditure along with the retirement plan payments you receive.

Some retirees consider investing in stocks so they can get additional money. However, the stock market has an unpredictable nature. As an investor, you may even lose money instead of gaining more. It is recommended that you should pursue safer investments that guarantee financial security. Keep in mind that you are retired from work.

As you approach retirement, it may seem as the end of the road. Think of it as a beginning and as an opportunity. Life after retirement can be a pleasurable one, as long as you manage your retirement plan carefully.

Important Steps to Financial Freedom. Who hasn’t wished of winning the lottery and taking home millions of dollars to buy that new luxury car, a nice beach front house, or maybe finally go to that family dream vacation? It’s really wonderful to imagine that you have the financial resources you need to have a good, comfortable life. It’s everybody’s goal to have financial freedom and be able to do what they want without worrying about money and where they’ll get it.

However, simply raking in millions from lottery winnings doesn’t guarantee that you’re made for life. You still need to have a good spending and saving habit and follow a sound personal finance management plan in order to make your money work for you.

With that said, the question now is what is real financial freedom and how do we achieve it? Most financial experts and family financial planning books and articles would define financial freedom as having a continuous flow of money or income in your bank account, eliminating the need for you to put in hours and painstakingly work everyday of your life. This is referred to as “passive income”, or money that works for you, instead of you “actively” working for it.

Important Steps to Financial Freedom

Achieving passive income is possible through investements that you make early on while you’re young and have a full capacity to work and earn. As you know, as we get older, our ability to earn also decreases since we might not be as physically strong and healthy to do more work. That’s why retirement planning, healthcare insurance, and building a “nest egg” are all important financial matters we should deal with as early as possible so that whatever extra money we make or have can be placed in wise investments to create that passive income that will then lead to our true financial freedom.

Before diving into various personal finance workshops, seminars, or consulting with a financial adviser to start creating passive income, there are some important steps to financial freedom that we should do now, in the present, to make sure we get to follow a good path into creating that passive income in the future.

These are:

Get out of Debt
Create an “emergency fund” in your bank account equivalent to 2 months of your monthly household and personal budget.
Set aside another fund equivalent to 6 months of your income. This will be your “long-term” savings that you can invest in higher yielding investments.
After building up your emergency and long-term fund, you can now start creating passive income by looking at real estate investments, retirement plans or options, and other speculative stocks and high risk investments. Just a word of caution: don’t go into any investment that you do not fully understand or promises too high of a return or interest. Chances are you’re going to lose money and regret it in the future.

Things You Should Do Now for Your Retirement; Contrary to what many people believe, retirement planning doesn’t need to take place when you’re in your 50s or 60s. It’s actually best to start thinking about it the moment you’re able to get your first job or earn your first dollars. Why? Well, frankly it’s because nobody said that you’re supposed to retire only when you’re old. Early retirement is possible, though a lot of us only dream of it. It is something achievable by any average employee or working professional as long as he or she conscioulsy plans for it.

Here are some things you should do now in order to set the ball rolling for your early retirement:

Things You Should Do Now for Your Retirement

Do your homework and set out a retirement plan
A lot of us want to retire early, but few are able to make the necessary plans, strategies, and sacrifices in order to achieve that goal. Stop day dreaming and start laying down a plan that will work for you based on your income, lifestyle, and financial priorities.You have to have a savings plan, a good and realistic budget plan, and of course an investment plan that you can build up through the years leading to your retirement. Nobody gets to go on early retirement and be financially secure without putting considerable hours studying personal finance management books, talking to financial experts, and just really devoting a lot of their time and effort in figuring out a retirement plan they can stick to now and far ahead into the future.

Check your spending habits and try to spend less
This is probably the advise that people don’t like hearing the most. After all, we would like to enjoy our money since we worked so hard for it. But this is also one important sacrifice we should do now while we’re still young and able to earn good income. By spending less we get to have more to put away for savings and possibly future investments for early retirement.

Save and Invest

If you’re able to spend less, then you should have more money for savings and investments. The whole idea of retiring early is based on creating savings now, while you’re young, and letting that “pool fo money” grow on its own through the years so you could enjoy the fruits of your labor during retirement.
Create more income streams As an added back up plan to ensure you have the money to push your retirement savings, try to create more income streams besides your full-time job. Why not explore your hobby or passion and see if you can turn that into another potential money-earner. If you have a lot of spare time, then get a part-time work in your community. Having extra income gives you a better chance of saving more for your retirement.

Is a There a Perfect Time To Invest; Is a There a Perfect Time To Invest? It is almost impossible to tell when the perfect timing in investing is. Well, it is a different situation if you have a time machine or a crystal ball, but that does not exist. Waiting for the right time to invest is also hard to do because you might be waiting for that perfect moment but you did not realize that it just slips right by you giving you missed opportunities, and if you get too aggressive in investing, it might lead to regret. Instead of finding the right time, why don’t you just stick with staying power and discipline to achieve success in investing? Here are some tips one can use to help them about investing:

Is a There a Perfect Time To Inverst

Investment stages are as follows

• Choosing and owning a variety of investments will definitely be a smart move on your part. Many investments affect each other, like if bonds increases, it will affect other investment like shares to go down. If you own both of these investments, you can gain from bonds and you can absorb the losses from the shares.

• For those who do not want to take high risk in investments, you could try the “dollar costing averaging”. This requires you to contribute to your portfolio at different prices over a period of time. By making small and often contributions will spread out the cost of investment. This will even out the highs and lows of the average overall price.

Is a There a Perfect Time To Invest

• Is a There a Perfect Time To Invest; Is a There a Perfect Time To Invest? It is almost impossible to tell when the perfect timing in investing is. Well, it is a different situation if you have a time machine or a crystal ball, but that does not exist. Waiting for the right time to invest is also hard to do because you might be waiting for that perfect moment but you did not realize that it just slips right by you giving you missed opportunities, and if you get too aggressive in investing, it might lead to regret. Instead of finding the right time, why don’t you just stick with staying power and discipline to achieve success in investing? Here are some tips one can use to help them about investing:

Investment tip is as follows

• Is a There a Perfect Time To Invest? Review and research everything. You cannot just load investments in your portfolio. You must be smart to what kind of investment you are going to push through. Investments are like plants which need to take care of properly and should be nourished with much attention. If ever you made a mistake, everyone makes a mistake every now and then, better make sure you do not make the same mistake twice! A professional investor would never make the same mistake twice because they learn from it. It is wise to review your investments thoroughly every month or so or even weekly, just to make sure you know every inch of it.
So to sum this up, the secret to good investing is thinking ahead, discipline and make sure that your portfolio does not have any unrelated asset classes and better make sure to think long term. Do not wait for the right time, if you found an opportunity, seize it if you see it is worth it, and do not let this become a missed opportunity.

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