Capital coverage procedure

Financing form of assecurance. Every insurance policyholder saves the amount of the entitlement that is due at a later date themselves. Unlike social security, which uses the pay-as-you-go approach, every generation is responsible for building up its own capital. This makes individual insurance insensitive to demographic influences, above all in the form of mixed capital-based life assurance, private annuity insurance, private nursing care insurance, private health insurance and accident insurance where contributions are returned. Damage that has already occurred cannot be insured under the capital coverage procedure.