Direct insurance is one of the most well-known and commonly used methods of implementing occupational pension schemes. In this arrangement, the company takes out a life or pension insurance policy on behalf of its employees. The contributions, which can be funded either solely by the company or jointly with employees through salary conversion, flow directly into this insurance contract. The goal is to provide additional retirement income or a lump-sum payment for life after employment.
A major advantage of direct insurance lies in its simplicity: It's easy to set up, requires minimal administrative effort, and in many cases can be transferred when changing employers. Additionally, both employers and employees benefit from tax advantages and, in some cases, social security savings. Here's an overview of further benefits:
- Contributions are tax-exempt and free from social security contributions up to certain limits
- Risk coverage available (e.g., disability insurance or survivor's benefits)
- Contractual Security Through External Insurance Companies
- Minimal organizational barriers for small and medium-sized enterprises
For employees, this form of retirement provision means financial relief in old age and greater planning security. At the same time, it demonstrates the company's social responsibility and strengthens its position in the competition for qualified professionals. In modern benefit systems like HelloBonnie, direct insurance can be integrated as part of a flexible complete package – digitally managed and individually combinable with additional benefits. This makes retirement planning not only simpler but also more attractive.