Care affects almost everyone at some point, whether it's because you need support yourself or because a relative is in need of care. But hardly anyone is prepared for the financial consequences. Although statutory care insurance provides basic cover, it only covers part of the actual care costs. If you want to live independently and relieve the burden on relatives in the event of care, you should consider supplementary care insurance at an early stage.
Supplementary long-term care insurance helps to close the gap between the benefits provided by statutory long-term care insurance and the actual costs. Whether home care, nursing home care or support from relatives, several thousand euros per month can quickly add up in an emergency. Suitable supplementary insurance can significantly reduce this financial burden and allows you to decide on the type and scope of care yourself.
What is supplementary long-term care insurance?
Supplementary long-term care insurance is a voluntary, private supplement to statutory long-term care insurance. It is intended to close the financial gaps that arise if the benefits provided by the statutory long-term care insurance fund are not sufficient to cover the actual costs of care.
This is because several thousand euros can quickly be incurred each month in the event of care, for care at home, a stay in a care home or professional support from care services. Without additional cover, people in need of care or their relatives have to pay these sums from their own income or assets.
Supplementary long-term care insurance can help here: depending on the tariff and level of careadditional cash benefits that can be used freely. Insured persons can use the money, for example, to
- to pay for an outpatient care service,
- to purchase care aids,
- hire domestic help or
- to remunerate relatives for their care work.
Aim and benefits of supplementary long-term care insurance
Supplementary long-term care insurance primarily serves to provide financial relief. It ensures that people in need of long-term care are
- be able to decide on their own form of care,
- Do not overburden relatives financially,
- and maintain their quality of life in the long term.
It also protects your own assets, such as savings or real estate, from being used up by care costs.
The interplay between statutory and private long-term care insurance
The statutory care insurance only covers part of the costs. Private supplementary long-term care insurance fills this gap. Together, both insurances form a solid long-term care provision that creates security and scope for planning.
For whom does supplementary long-term care insurance make sense?
Basically for anyone who wants to insure themselves and their family in the event of long-term care. It is particularly useful for:
- Working people who want to make early provision,
- Families with their own home or savings,
- People who value care at home,
- and anyone who would like to relieve relatives.
The earlier the policy is taken out, the lower the premiums and the more comprehensive the insurance cover.
Why supplementary long-term care insurance is becoming increasingly important
The number of people in need of care in Germany is rising steadily. According to the Federal Statistical Office, more than 5 million people are currently dependent on care, and the trend is still rising. As the population ages, so does the risk of being affected at some point. At the same time, it is becoming clear that statutory care insurance is often not enough to cover the actual costs of care.
Many people believe that they are financially secure if they need long-term care. But the reality is different: Statutory long-term care insurance is merely compulsory long-term care insurance that only covers part of the costs. The personal contribution that people in need of care have to pay themselves has risen continuously in recent years.
Private supplementary long-term care insurance covers this gap in provision. It helps to protect your own savings and relieve the burden on family members. Without additional cover, children or partners often have to step in financially if income and statutory benefits are insufficient.
In addition, supplementary long-term care insurance allows you to decide for yourself where and how you would like to be cared for, for example at home, in a retirement home or with the help of professional care services. This freedom is a decisive reason for many people to make provisions in good time.
Investing in supplementary long-term care insurance is therefore not just a question of financial security, but also an investment in dignity, self-determination and quality of life in old age. Those who take care early on benefit from lower premiums and more comprehensive insurance cover.
Statutory long-term care insurance - a basis with gaps
Statutory long-term care insurance has been compulsory in Germany since 1995. It is designed to ensure that people receive basic financial support if they need care. Everyone who has health insurance, whether statutory or private, automatically pays into the long-term care insurance scheme.
Basic principle of statutory long-term care insurance
The system works on a pay-as-you-go basis: The insured persons' contributions are used directly to finance current care cases. No capital accumulation takes place. As a result, the performance of the long-term care insurance funds depends heavily on the number of contributors and people in need of care, and this is becoming an increasing problem in view of demographic change.
Statutory long-term care insurance generally provides benefits for those in need of care from care level 1. Depending on the classification into a care level, those affected receive monthly benefits, either in the form of
- Care allowance,
- Care benefits in kind for a care service or
- Subsidies for a stay in a nursing home.
Long-term care allowance from statutory long-term care insurance
| Degree of care | Care allowance (home care) |
|---|---|
| 1 | No payment |
| 2 | 347 € |
| 3 | 599 € |
| 4 | 800 € |
| 5 | 990 € |
Where statutory long-term care insurance reaches its limits
Statutory long-term care insurance is only intended as partial cover,
It only covers a fraction of the actual care costs. The remaining personal contribution must be paid privately.
Costs are also incurred for home care by relatives, for example for aids, travel, conversions or professional support. These are only partially covered by statutory insurance.
Daily care allowance insurance - flexible and popular
Daily long-term care insurance is the best-known and most flexible form of supplementary long-term care insurance. It is particularly suitable for people who want to decide for themselves how to use the benefits in the event of long-term care.
What is daily care allowance insurance?
With daily care allowance insurance, insured persons receive an agreed amount of money per day or per month in the event of needing care, regardless of the actual care costs incurred.
This means that there is no check on what the money is spent on. Insured persons can decide for themselves whether they want to use it for home care, household help, care aids or to relieve relatives.
Advantages of daily care allowance insurance
Daily long-term care insurance offers several decisive advantages:
- Freedom of use: The money paid out can be used flexibly for any type of care.
- Can be combined with other benefits: It can be drawn in addition to care allowance or benefits from statutory long-term care insurance.
- Support for relatives: The daily allowance can also be used to provide financial relief for family carers.
- Affordable premiums at a young age: Those who take out insurance early often only pay a few euros per month, but receive a high level of protection in the long term.
Amount of benefit - individually selectable
The benefit is based on the agreed daily rate and the level of care. The higher the level of care, the higher the payout. Many insurers offer graduated payments, an example to illustrate this would be:
| Degree of care | Performance per month |
|---|---|
| 2 | 600 € |
| 3 | 1.200 € |
| 4 | 1.800 € |
| 5 | 2.200 € |
For whom is daily care allowance insurance useful?
This variant is particularly suitable for people who value independence and flexibility. It is ideal if you
- would like to be cared for at home in the event of nursing care,
- want to relieve the financial burden on relatives,
- or prefer a free hand when using the power.
Long-term care insurance - direct assumption of costs
In addition to daily care allowance insurance, long-term care cost insurance is also a common form of supplementary long-term care insurance. In contrast to the daily allowance variant, it does not pay out a fixed amount of money, but directly covers the actual care costs incurred that are not covered by statutory long-term care insurance.
How does long-term care insurance work?
Depending on the tariff, care cost insurance reimburses a percentage of the remaining care costs.
This means that the insurance takes over exactly where the statutory long-term care insurance stops paying.
Example:
A person with care level 3 lives in a nursing home. The monthly costs amount to 3,800 euros. The statutory care insurance pays around 1,300 euros.
Depending on the tariff, private long-term care insurance covers 50 to 100% of the personal contribution, i.e. between EUR 1,250 and EUR 2,500 per month.
Advantages of long-term care insurance
This type of supplementary insurance is particularly useful for people who are dependent on professional care services or are being cared for in a nursing home.
Your advantages:
- Direct assumption of costs: The insurance company pays invoices for care services directly to the provider or reimburses them on presentation.
- Secure calculation: the actual care costs are covered.
- Relief for relatives: no complicated billing or documentation for the care insurance fund.
- Flexible tariffs: Many insurers offer different reimbursement rates, e.g. 50%, 75% or 100% of the co-payment.
Disadvantages compared to daily care allowance insurance
Despite its advantages, long-term care insurance is not the best choice for everyone. It usually requires proof of invoices, which means more bureaucracy. It is also more closely tied to actual care services - so the free use of the money is limited.
Who should take out long-term care insurance?
This form is particularly suitable for people who
- expect inpatient care in a home,
- attach importance to an exact assumption of costs,
- or already know that they will require professional care services when they need care.
Long-term care pension insurance - lifelong security
Long-term care pension insurance is the third major type of supplementary long-term care insurance. It combines the idea of provision with long-term capital accumulation and offers a monthly pension in the event of long-term care, the amount of which depends on the respective level of care.
What is long-term care pension insurance?
With this form of insurance, policyholders pay regular premiums, similar to life insurance. If the need for long-term care is later established, they receive a monthly long-term care pension.
This pension is paid for life as long as the need for care exists. The amount of the benefit depends on the agreed tariff and the care level determined.
Example:
A person takes out long-term care pension insurance at the age of 40 and pays 50 euros per month.
If they reach care level 3 at the age of 70, they will receive a monthly pension of around EUR 1,500.
Advantages of long-term care pension insurance
Long-term care pension insurance offers several advantages that make it particularly attractive for people who want to plan for the long term:
- Lifelong payment: The pension is paid monthly for as long as care is required.
- Capital accumulation: Anyone who does not require long-term care receives a repayment or maturity benefit, depending on the tariff.
- Flexibility of use: The care pension can be used freely for care, household help, relatives or leisure activities.
- Independence from care costs: Payment is made regardless of actual bills or forms of care.
- Stable premiums: Premiums generally remain constant and calculable.
Differences to other supplementary long-term care insurance policies
Compared to daily care allowance insurance or care cost insurance, long-term care pension insurance is more expensive as it also includes savings and risk components. However, it also offers the advantage of guaranteed life cover.
For whom does long-term care pension insurance make sense?
This variant is particularly suitable for people who:
- want to build up a comprehensive pension plan at an early stage,
- value capital preservation or payout in the event of inheritance,
- want stable premiums and guaranteed benefits in the long term,
- and financial security in old age.
Bahr long-term care insurance - the state-subsidized supplementary long-term care insurance
Not everyone can afford private supplementary long-term care insurance with high premiums. This is precisely why the Pflege-Bahr was introduced, a state-subsidized supplementary long-term care insurance that is also open to people with health restrictions.
What is the long-term care insurance?
Pflege-Bahr is a state-subsidized daily care allowance insurance that has been on offer since 2013.
The name goes back to the then Minister of Health Daniel Bahr.
It is intended to help everyone, regardless of income or pre-existing conditions, to build up private long-term care provision.
The state pays each insured person who takes out such insurance a monthly subsidy of 5 euros, provided that their own contribution is at least 10 euros per month.
This results in a minimum contribution of EUR 15 per month for state-subsidized supplementary long-term care insurance.
Who can take out the long-term care insurance?
In principle, anyone aged 18 or over who lives in Germany can take out the long-term care insurance, regardless of their income or state of health.
A decisive advantage: there is no health check.
Even those who are already ill or have previous care experience can take out the contract.
Requirements for state funding
The following conditions must be met in order to receive funding:
- The monthly personal contribution is at least 10 euros.
- The benefit starts from care level 1.
- You have statutory or private compulsory long-term care insurance.
- The contract must not contain a waiting period that delays benefits.
The subsidy is automatically applied for via the insurance company, so insured persons do not have to do anything else.
Advantages of the long-term care insurance
- No health check: anyone can take out insurance, even with pre-existing conditions.
- State subsidy: Monthly subsidy of 5 euros.
- Simple application: Funding runs automatically via the insurer.
- Premium security: The premiums usually remain stable over the entire term.
- Combinable: The long-term care insurance can be combined with other private supplementary long-term care insurance policies.
Disadvantages and limits
Despite the advantages, the long-term care insurance also has weaknesses:
- The benefits are comparatively low, covering only a small part of the actual care costs.
- There is usually a waiting period of up to five years before the full entitlement arises.
- For older policyholders, the premium can be relatively high in relation to the benefits.
For whom does the long-term care insurance make sense?
The long-term care insurance is particularly suitable for:
- People with pre-existing conditions who do not receive any other supplementary long-term care insurance,
- People with low incomes who benefit from state subsidies,
- Younger people who want to build up basic cover early and at low cost.
If you want more comprehensive cover, you can combine long-term care insurance with additional private long-term care insurance
Degrees of care - basis for benefits
The classification into a care level is the most important basis for benefits from statutory long-term care insurance and also for the payment of supplementary long-term care insurance.
Depending on the severity of the need for care, those affected are divided into five care levels, from mild impairment to the most severe need for care.
What does care level mean?
The care level describes the extent to which a person's independence in everyday life is restricted.
It is determined by the Medical Service (MD) or a private long-term care insurance assessor using a points system.
Not only physical limitations are decisive, but also mental and psychological impairments, for example in the case of Dementia or Alzheimer's disease.
The experts assess six areas of life:
- Mobility - How independently can the person move?
- Cognitive and communicative skills - e.g. orientation, understanding, memory.
- Behavioral and psychological problems.
- Self-care - What can the person do themselves (e.g. personal hygiene, nutrition)?
- Coping with and independently dealing with illness- or therapy-related requirements.
- Organization of everyday life and social contacts.
The care degree is calculated from the sum of the points.
The five care levels at a glance
| Degree of care | Points range | Description | Exemplary situation |
|---|---|---|---|
| 1 | 12,5 – < 27 | Minor impairment of independence | Help needed with individual tasks |
| 2 | 27 – < 47,5 | Significant impairment of independence | Regular support required |
| 3 | 47,5 – < 70 | Severe impairment of independence | Daily care and support required |
| 4 | 70 – < 90 | Severe impairment of independence | Comprehensive help in all areas of life |
| 5 | 90 - 100 | Severe impairment of independence with special requirements for nursing care | Round-the-clock care required |
Importance of care levels for supplementary long-term care insurance
The amount of benefits from private supplementary long-term care insurance depends directly on the level of care.
The higher the care level, the higher the monthly payment.
Many tariffs only pay from care level 2some already pay proportionately from care level 1.
How do I apply for a care degree?
- Submit an application: to the long-term care insurance fund (statutory) or to the private insurer.
- Assessment: by the Medical Service or MEDICPROOF (for privately insured persons).
- Assessment: based on the areas of life mentioned above.
- Notification: The long-term care insurance fund officially informs you of the care level.
Important: If the application is rejected or rated too low, an appeal can be lodged within four weeks.
The cost of care - a financial challenge
Care is not only an emotional burden, but also a financial one. The actual costs of care are often underestimated. Whether home care, care by relatives or inpatient care in a nursing home, high monthly sums can be incurred in the event of care, which are only partially covered by statutory care insurance.
Care at home - when relatives help
Around 80 percent of people in need of care in Germany are looked after at home, mostly by relatives, supported by outpatient care services.
Although home care is cheaper than a nursing home, it also incurs considerable costs.
Typical monthly cost factors:
- Nursing service (several times a day)
- Aids (e.g. care bed, wheelchair, hygiene articles):
- Conversions in the home (barrier-free)
- Loss of earnings for family carers
The statutory care insurance pays care allowance or benefits in kind, but usually only one third to one half of the actual expenses.
The remainder must be borne by the person in need of care or their family.
Care by relatives - the invisible cost factor
Many relatives provide care out of love, not for financial reasons. But they often bear indirect costs:
- Reduced working hours or termination of the job
- Own health burden
- Additional travel and supply costs
Supplementary long-term care insurance can provide financial relief here by paying out money each month that can be used freely, e.g. for support from home help or to finance care aids.
Supplementary long-term care insurance costs
The cost of supplementary long-term care insurance depends on several factors. Above all, the age at the time of taking out the policy, the state of health, the chosen tariff and the amount of the desired benefit. As a general rule, the younger the insured person, the lower the monthly premium.
While many consumers think that supplementary long-term care insurance is expensive, in practice it turns out that good cover is possible for just a few euros a month, especially if you take it out early.
Factors influencing the contribution
- Age at the time the policy is taken out:
The earlier you take out supplementary long-term care insurance, the lower the premium. Insurers calculate according to risk and this increases with age. - state of health:
Many tariffs are subject to a health check. Pre-existing conditions can lead to risk surcharges or make it more difficult to take out a policy.
Exception: long-term care insurance, which can be taken out without a health check. - Selected benefit amount:
The higher the desired daily care allowance or monthly pension, the higher the premium. - Type of supplementary long-term care insurance:
- Daily care allowance insurance: usually the cheapest way to start, flexible use
- Long-term care insurance: contribution depends on actual care costs
- Long-term care pension insurance: more expensive, but with capital accumulation
Why early action pays off
Many people put off making long-term care provisions, often for too long.
But those who act early benefit twice over:
- Lower premiums at a young age
- Higher benefits in the event of long-term care
Example:
A 30-year-old policyholder often pays only half of what a 55-year-old would have to pay for the same benefit.
Supplementary long-term care insurance in old age
As a general rule, the older the insured person is when they take out the policy, the higher the premiums.
Insurers calculate the risk that a nursing care case could occur soon. Anyone who takes out private supplementary long-term care insurance at the age of 65 often pays between €70 and €100 per month, while younger policyholders pay significantly less.
Nevertheless, it can be worth taking out a policy if:
- care costs are already known in the family environment,
- certain assets are to be protected,
- or relatives should be financially relieved in the event of care.
For older people with pre-existing conditions, long-term care insurance can be particularly interesting, as it can be taken out without a health check.
Which types of insurance are suitable in old age
- Long-term care insurance: state-subsidized, no health check, good basic cover even in old age.
- Daily care allowance insurance: Flexible benefits, money that can be used as required, ideal if relatives are involved in the care.
- Long-term care insurance: Recommended if it is already clear that professional inpatient care will be necessary.
Many insurers offer senior rates with simplified conditions that are tailored to the needs of older people.
What older policyholders should look out for
- Check the waiting period: Some tariffs stipulate waiting periods of up to five years. Make sure that the cover takes effect as quickly as possible.
- Premium stability: The premium should remain affordable in old age. A tariff with a stable premium is better than one with dynamic adjustments.
- Start of benefits: Ideally, the insurance pays out from care level 1 or 2, not only when the need for care is severe.
- Flexibility: Free availability of the payment is important, e.g. to organize domestic help or outpatient services yourself.
Supplementary long-term care insurance and financial planning in old age
For many senior citizens, asset protection plays a central role.
Supplementary long-term care insurance helps to protect their own savings or property assets.
Without additional provision, children or spouses often have to step in, or there is a risk of selling the home to cover care costs.
Private supplementary long-term care insurance ensures that you remain financially independent and can decide for yourself how and where you would like to be cared for, at home, in a nursing home or with outpatient support.
