Long-term care insurance: Protecting your future in Germany
- Max Faller
- Aug 14
- 3 min read
By 2035, the number of people, in Germany, aged 67 and over is expected to rise from 16 million (2020 figure) to 20 million, according to calculations by the Federal Statistical Office. With the aging population on the rise, it is important to consider long-term care insurance.
This article provides an overview of the key points to properly prepare for your future in the event of a loss of autonomy.
1. What is long-term care insurance?
Long-term care insurance is part of the German social security system. It is funded by contributions and managed by the long-term care insurance funds (Pflegekassen).
It covers the long-term care needs of individuals in a dependent situation. Whether for home care or institutional care, this insurance provides partial coverage of the costs associated with the necessary assistance. It is mandatory in Germany, and employees are automatically covered through their health insurance (public or private). However, the basic coverage may sometimes be insufficient to meet all needs in the event of a loss of autonomy.
Mandatory long-term care insurance is public for those earning up to €62,100 annually. The mandatory contribution is 3.4% of gross salary, split equally between the employer and the employee. Individuals without children must pay an additional 0.6% contribution.
Note: The status of a dependent person does not only apply to the elderly. It also includes individuals with disabilities.
2. How does it work?
Long-term care insurance is based on a system that evaluates the level of dependency, classified into five degrees (Pflegegrade). Depending on the degree of dependency, the duration of care, and the type of services required, financial assistance is provided in the form of in-kind benefits (home care services or institutional care) or monetary allowances.
In addition, there are private long-term care insurance options that allow you to supplement the basic coverage by offering additional benefits such as personalized support or more comprehensive care in an institution.
To be eligible for benefits, you must have been insured for at least two years before the need for care is recognized. For children, this period is considered fulfilled if one of the parents has met this requirement. You must apply to your health insurance fund.
3. Why should you subscribe to long-term care insurance?
Subscribing to long-term care insurance is a way to preserve your autonomy and relieve your loved ones in case of a loss of abilities. Here are some key reasons why it is crucial to protect yourself:
Prevent unexpected financial burdens: The costs of long-term care can be high, especially in institutions, and public assistance may prove insufficient.
Lighten the burden on loved ones: In Germany, family members may be asked to contribute financially to the care of a dependent relative. A suitable insurance policy helps reduce this burden.
Prepare for a peaceful retirement: For expatriates, living in retirement in Germany often means preparing in advance for reliable support solutions in case of need.
By anticipating these needs with long-term care insurance, you create a more stable living environment, even in a dependent situation.
4. How to choose the right one?
Choosing the right long-term care insurance is essential to meet your needs as an expatriate . Here are some points to consider:
Evaluate the benefits offered: Some insurance plans provide more comprehensive services, such as specific support services or coverage in institutions.
Analyze the exclusions and limits: Some policies may have limits on certain types of care or waiting periods. Understanding these aspects fully is crucial to avoid surprises.
Compare premium levels: Premiums may vary based on the coverage chosen. Assessing your budget and priorities is crucial for making an optimal decision .
Seek guidance from an advisor: Consulting with a specialist in expatriate insurance can help you understand the German system details and make an informed choice .
Conclusion
Subscribing to long-term care insuranceis pivotal in safeguarding against the financial risks linked to a loss of autonomy and ensuring a higher quality of life for both you and your loved ones.
Make an appointment with our advisors for personalized assistance .
