The funding gap in long-term care
Germany's public long-term care insurance (gesetzliche Pflegeversicherung) was never designed to cover the full cost of care. It provides a fixed allowance based on care grade (Pflegegrad) — but real-world costs, especially for residential care, regularly exceed these allowances by a wide margin.
| Care grade | Public allowance | Typical out-of-pocket cost |
|---|---|---|
| Pflegegrad 1 | €131 | €385 |
| Pflegegrad 2 | €796 | — |
| Pflegegrad 3 | €1,497 | €925 |
| Pflegegrad 4 | €1,855 | €2,980 |
| Pflegegrad 5 | €2,096 | €2,980 |
Both columns refer to residential care (vollstationäre Pflege). Public allowances for home care (ambulante Pflege) differ. Actual costs vary significantly by region — in expensive regions, out-of-pocket amounts can be substantially higher. Source: general brochure, Jun 2025.
At Pflegegrad 4 or 5, the monthly out-of-pocket burden can reach €3,000 or more — month after month, indefinitely. Without private supplementary protection, this burden falls on savings, retirement income, or family members.
Long-term care product architecture
Four distinct approaches to closing the care funding gap are available. Each serves a different financial planning strategy:
Pflegekostenversicherung (Tarif 68)
Supplements the public allowance by a chosen percentage (20–200%). At 100%, the public benefit is doubled. At 200%, it is tripled. Covers actual care costs for all care types — ambulatory, day/night care, and residential.
Example: Age 35, 100% level → ~€55/month. Age 45 → ~€76/month.
Pflegetagegeld (Tarif 69)
Pays a fixed daily cash amount during residential care (from Pflegegrad 2). You choose the amount (€1–€100/day) and can use it freely — no cost receipts required. No waiting period.
Example: €50/day, age 35 → ~€16/month. Age 45 → ~€22/month.
FörderPflege (state-subsidized)
Government-subsidized supplementary care insurance ("Pflege-Bahr"). The state adds €60/year to your premium. No health assessment — anyone can enroll regardless of pre-existing conditions.
Minimum: €15/month (€10 own + €5 state). 5-year waiting period (waived for accidents or if Pflegekostenversicherung or Pflegetagegeld is also held).
IndividualPflege
Flexible, individually designed care protection. Choose your monthly benefit for each care grade separately. Available in Basis, Komfort, and Premium tiers. No waiting period. Benefits are freely usable — no care receipts required when family provides care.
Example: Komfort, age 35 → ~€39/month (up to €1,350/month at PG 5).
How to think about long-term care protection
Long-term care supplements serve three distinct purposes — understanding which applies to your situation clarifies the right product:
- Cost coverage (Pflegekostenversicherung): Directly reduces or eliminates your out-of-pocket share for actual care costs. Best for people who want their real expenses reimbursed, regardless of care type. Requires health assessment.
- Income / asset protection (Pflegetagegeld, IndividualPflege): Provides freely usable cash in case of care dependency. Protects retirement savings, prevents family members from having to contribute financially. Especially relevant for residential care. Requires health assessment.
- Entry-level / subsidized (FörderPflege): The minimum-barrier option. No health checks, state subsidy. Limited benefits relative to the other products — but better than no protection at all. Can also eliminate the waiting period when combined with one of the above.
It is recommended to combine Pflegekostenversicherung and Pflegetagegeld where possible — up to 100% cost supplement plus up to €50/day cash benefit. This covers both actual care costs and provides additional financial flexibility for residential care.
Frequently asked questions
Plan your care protection early
We help assess which care supplement — or combination — fits your financial situation and planning horizon.
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