Which insurance do retirees in Germany need, and which can they drop?
In short
Retirees in Germany still need personal liability, contents and, if they own a house, buildings insurance, together often EUR 550 to 800 a year. Which can they drop? Disability insurance ends with retirement, and term life cover often ends with the paid-off mortgage. Long-term care moves to the front: care home residents pay on average EUR 3,364 a month themselves in the first year.
Published premiums and costs that matter in retirement in Germany.
Example
Typical range
Personal liability, single, cover EUR 10 to 50 million
about EUR 40 to 120 a year
Buildings insurance, detached house with good cover
about EUR 400 to 500 a year
Own share in a care home, first year, national average
EUR 3,364 a month
Funeral insurance, starting at 70, sum EUR 7,000 to 8,000
about EUR 54 to 63 a month
Subsidy to private health insurance on a EUR 1,800 pension
EUR 157.50 a month
Figures from published tariff examples and official sources, as of October 2026.
Your premium depends on age, location and cover; we obtain the exact quote.
Worked example
Retired couple, house paid off, 75 square metres in use
This is the basic cover once disability and term life policies have run out.
Personal liability as a couple
about EUR 60 to 180
Contents, medium tariff zone
about EUR 90 to 120
Buildings with good cover
about EUR 400 to 500
Disability and term life
EUR 0, expired
About EUR 550 to 800 a year in total; long-term care provision comes on top if you want to protect savings and the house.
Which policies retirees in Germany should keep
Liability for damage you cause to others does not stop when you retire. Personal liability insurance (Privathaftpflicht) stays the most important policy for retirees, usually EUR 40 to 120 a year for a single person. If you now live alone, you can switch from a couple to a single tariff.
Contents and buildings insurance stay as long as you have furniture and own a house. If you move to a smaller flat, the living space and the sum insured for contents go down; tell the insurer, or you keep paying for space you no longer have.
Policy
In retirement
Personal liability
keep, maybe switch to a single tariff
Contents
keep, update living space after a move
Buildings
keep while you own the house
Disability (BU)
ends at the agreed final age
Term life
often unnecessary once the loan is repaid
Long-term care
check early, cheaper the sooner
Policies you can drop in retirement
Disability insurance (Berufsunfähigkeitsversicherung) protects your earned income. Once your pension starts there is no such income left, and the policy usually ends at the agreed final age anyway. Nobody in retirement needs a daily sickness allowance (Krankentagegeld) either.
Term life insurance (Risikolebensversicherung) matters while someone depends on you or a loan is open. With the house paid off and your partner provided for by pension and savings, retirees can let it run out. Funeral insurance (Sterbegeldversicherung) makes sense only for a few; a separate savings account is often cheaper.
The long-term care gap in old age
Statutory long-term care insurance (Pflegeversicherung) pays only part of the cost. In a care home, residents pay on average EUR 3,364 a month themselves in the first year, as of July 2026. If the pension is not enough, savings and later possibly the house go towards the bill.
A private daily care allowance (Pflegetagegeld) is more expensive at retirement age and depends on health questions. With existing diagnoses you may not get cover at all. Look at it before you retire, not when care is already in sight.
Accident, car and health insurance in retirement
When working life ends, the statutory accident cover for work and the commute ends too. For retirees living alone, an accident policy with practical help after a fall, such as shopping, cleaning and transport, is often worth more than a large lump sum.
Car insurance gets more expensive with age, usually from 65 to 70, because insurers price age into the motor liability premium. Compare every year. If you have private health insurance, the pension fund pays a subsidy of 8.75 percent of your pension, at most half your premium, but only if you apply.
When retirees need to change little
If you rent, do not drive and have statutory health insurance, personal liability and contents insurance are enough in retirement. Private long-term care cover pays off little with very small savings, because social assistance steps in anyway.
Norman Nammert works as an insurance broker (Versicherungsmakler) and reviews with you which policies to keep in retirement, which to cancel and where a gap opens. The insurer pays the commission, so the review is free for you.
Step by step
List all policies with premium and end date.
Find the policies that protect earned income and let them run out.
Compare term life cover with the remaining debt and cancel once the loan is repaid.
Adjust contents and liability to your living space and household.
Work out the care gap: care home costs minus pension and care insurance.
With private health insurance, apply for the subsidy together with your pension application.
Checklist
Personal liability with at least EUR 10 million cover
Contents with current living space
Buildings with natural hazard cover if you keep the house
No more disability premium after the pension starts
Care gap calculated and decided on purpose
Car tariff compared every year from 65
Common mistakes
Cancelling personal liability because you no longer work
Paying for term life cover when nobody needs protecting any more
Leaving long-term care until 75, when health questions block cover
Applying for the private health insurance subsidy too late
Questions and answers
Frequently asked
Which insurance is compulsory for retirees in Germany?
Health insurance and, for a registered car, motor liability.
All other policies are voluntary.
Do retirees still need liability insurance?
Yes.
If you harm someone, you are liable regardless of age, including with your savings.
Can I cancel disability insurance in retirement?
It usually ends at the agreed final age anyway.
If you retire early, you can cancel because there is no earned income left to protect.
Is funeral insurance worth it for retirees?
Only for a few.
If you live long, you often pay in more than is paid out.
A separate savings account for the funeral is often cheaper.
Are there special tariffs for retirees?
Some insurers offer senior tariffs for liability and accident cover.
What counts is the scope, not the name; compare cover and premium.
