Health Insurance

German Private

Almost 8 million people in Germany have either decided or been forced to seek insurance cover with a private German company, the official term: "Private Krankenversicherung (PKV). With just 45 in 2019 the list of providers is managable, however the vast and nontransparent range of different plans & benefits is comparable to a jungle - without the right tools you will get lost!

What does a German health plan include

“Medical” placed together with the “mandatory long-term care” tariff make up the main construct of German private health insurance, known in Germany as: “Krankheitskostenvollversicherung”. There is no one-to-one translation for this term, yet it can be understood as comprehensive health insurance.

Adding optional benefits

In addition to the above, the policy can be extended with the following optional benefits, which are considered as separate contracts, hence can be added or removed without affecting the main insurance construct.

  • Curs
    The insurer pays a fix agreed amount for every day the insured person is required to go on cure (e.g. asthma patients)
  • Hosptial per diem allowance
    The insurer pays a fix agreed amount for every night the insured person is submitted to hospital
  • Precautionary medical examinations
    The insurer pays a fix agreed amount for medical check-ups that correlate with the German statutory ("public") health system
  • Premium Stability Scheme
    A tarif that can be added allowing the insured-person to save up necessary funds - a puffer - that will help to assure affordable premiums at old-age. Not only are these additional payments tax-deductible but are also not subject to German Settlement Tax (Abgeltungssteuer).

    The 2 most common credit forms - constant and dynamic
    • Constant
      The insured-person determines a fixed amount by whcih the premium increases month for month
    • Dynamic
      The insured-person determines the intervals in which the premium should be increased
  • Sickness Allowance
    The insured person can set up a payment scheme in which the insurer will pay a fix amount for each day of sickness.
    Different insurers have different programms but generally the insured person can define the an amount as from just one week or for several weeks to follow.

    In the following example the insurer would pay 200€ per day should the insured person still be written-off sick after 6 months.
    • As of week 6 => 50€ per day
    • As of week 13 => 50€ per day
    • As of week 26 => 100€ per day
  • Worldwide medical insurance
    Not all providers offer worldwide coverage as a standard, therefore it is advisable to include such a benefit as the costs are very little.

    Tip: Even if a policy includes worldwide cover, adding this tariff is a way to bypass the annual excess.

One other benefit, which the German calls "Optionstarif", allows a switch on renewal to a more comprehensive plan without having to undergo a new medical examination. This is highly recommendable to a person who has been accepted with a more serious pre-existing condition and needs the possibility to switch to better coverage, should future medical enhancements make curing treatment possible.

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