I have, with interest, again just read through the recently recommended "Insurance in Germany" post. Although being just a general info block, it does raise some excellent points about potential insurances that are unnecessary for many people. Where one particular insurance fits the needs of some people, it doesn't mean to say it will fit the needs of everybody. I have been advising ex pats as an independent financial adviser for 5 years now, and I can't stress enough, that when it comes to German insurances and trying to understand German insurance law, surfing the web is one thing but obtaining professional and unbiased advise is another. I strongly recommend that you seek the help of an independent financial adviser when it comes to trying to find out what is best for you as an individual or as a family here in Germany. Get second, and third opinions if need be, just to be on the safe side. Financial advice should normally be free of charge here, so beware of anybody asking for an up front fee, and also ask right at the start whether or not the advice that you receive will indeed be free. It should be.
I hope this helps