Financial emergency plan

A financial emergency plan protects you and your family when something unexpected happens – job loss, accident, serious illness or death.

The 6 building blocks:

1. Emergency fund:

• 3–6 months' net salary in overnight money
• Available immediately, not in shares/ETFs

2. Insurance cover:

• Liability (a must!), occupational disability (income protection), term life insurance (for families)

3. Provision documents:

• Lasting power of attorney: who decides for you if you're incapacitated?
• Living will: what medical treatment do you want?
• Will: who inherits what?
• Guardianship provision: who gets the children?

4. Emergency folder:

• All account numbers, insurance policies, contract numbers
• Digital estate (passwords, online accounts)
• Emergency contacts (family, employer, lawyer, tax adviser)

5. Bank power of attorney:

• Authorise a trusted person at your bank (using the bank's own form!)

6. Emergency contacts:

• Blocking hotline: 116 116 (block cards/accounts, 24/7)
• Debt counselling: free at Caritas, Diakonie, AWO

Fact: only 28% of German households have a complete emergency plan. The other 72% would be in financial difficulty after a blow of fate.