Introduction

Life has plenty of surprises in store for us and not always positive ones. Unemployment, a serious accident or the sudden loss of our partner can often put us in a difficult financial situation. And who will take care of us when we get old? Only within the framework of a comprehensive system of social benefits like the German social insurance can each individual be protected from these kinds of threats to his livelihood. German social insurance is based on legal foundations first formulated in the 19th century, with principles that are still valid today.

With his "Imperial Decree of 17 November 1881, Emperor Kaiser Wilhelm I officially launched the development of an insurance system for people working in Germany based on the initiative of Imperial Chancellor Otto von Bismarck. Henceforth the state was to take responsibility for securing the livelihoods of its citizens, based on the following principles:

• Financing pensions through contributions paid into the system over time by those insured,
• Supervision of and participation in social insurance by the State,
• Principle of self-government: employers and insured have full co-determination rights in the system through an assembly of elected representatives,
• Participation of the employer in contributions paid into social insurance.

In 1883 Bismarck introduced health insurance, in 1884 accident insurance and from 1889 onward employees could for the first time insure themselves against the consequences of old age and invalidity. In the following years the social system was continually expanded: in 1912 a social insurance for white-collar employees was added, and in 1927 unemployment insurance went into effect. The most recent branch of German social insurance is the social long-term care insurance, gradually introduced starting in 1994.

German social insurance is a statutory insurance system, which plays a predominant role in Germany's overall social security. Based on the solidarity of the community of the insured, it provides effective financial protection against the major life risks and their consequences, including illness, unemployment, old age, industrial accidents and the need for long-term care. Social insurance guarantees a stable standard of living for every individual. Coverage encompasses the following branches, referred to as insurance funds or funds:

• Accident insurance
• Long-term care insurance
• Health insurance
• Pension insurance and
• Unemployment insurance

The insurance funds are self-governing  corporations under public law that have joined together to form national associations. The funds take full responsibility for fulfilling the tasks assigned to them by law. The federal ministries in charge are:

• the Federal Ministry of Health (Bundesministerium für Gesundheit) . English website available.
  Among the central tasks of the Federal Ministry of Health (BMG) is to ensure the performance capability and continuing development of the statutory health insurance system as well as the long-term care insurance.
• the Federal Ministry of Labour and Social Affairs (Bundesministerium für Arbeit und Soziales) . English website available.
  The central concern of the Federal Ministry of Labour and Social Affairs (BMAS) is to ensure the performance capability and continuing development of the statutory insurances as follows: pension, occupational accidents and unemployment.

Employees below a certain income level are as a rule automatically compulsorily insured. The social insurance funds are generally financed by contributions from insured fund members and their employers. To find out exactly who is insured, see the descriptions of each insurance fund under "Who is insured?".