Why care insurance matters
Germany is facing a demographic challenge. According to official statistics from the Federal Statistical Office (Destatis):
- As of 2023, approximately 5 million people in Germany are classified as needing care (pflegebedürftig)
- By 2040, projections estimate this number will exceed 5.6 million
- By 2060, up to 6.2 million people may require long-term care
The statutory care insurance (Pflegepflichtversicherung) was introduced in 1995 as a "partial coverage" system — it was never designed to cover all care costs.
How Pflegepflichtversicherung works
Long-term care insurance is mandatory for everyone in Germany, regardless of whether you have GKV or PKV health insurance. The principle: Pflegeversicherung follows health insurance (SGB XI §20).
Contribution rates (2026)
| Category | GKV Rate | Notes |
|---|---|---|
| Standard (with children) | 3.40% | Of gross income up to BBG |
| Childless (age 23+) | 4.00% | 0.60% surcharge (Kinderlosenzuschlag) |
| With 2+ children under 25 | Reduced | 0.25% reduction per child (2nd–5th), per PUEG reform |
In PKV, the Pflegepflichtversicherung premium is calculated actuarially (by age at entry), not income-based. This means it is fixed and includes aging reserves.
Care levels (Pflegegrade) and benefits
Since the Pflegestärkungsgesetz II (2017), care needs are classified into 5 levels:
| Grade | Pflegegeld (home) | Sachleistung (professional care) | Full inpatient |
|---|---|---|---|
| Pflegegrad 1 | — | — | €125 subsidy |
| Pflegegrad 2 | €332 | €761 | €770 |
| Pflegegrad 3 | €573 | €1,432 | €1,262 |
| Pflegegrad 4 | €765 | €1,778 | €1,775 |
| Pflegegrad 5 | €947 | €2,200 | €2,005 |
Values as of 2024 (PUEG reform). Pflegegeld and Sachleistung amounts were increased by approximately 5% with the PUEG. Check current values at the Federal Ministry of Health.
The coverage gap: what statutory care doesn't pay
Full residential care in Germany costs between €3,000 and €5,000 per month depending on the facility and region. Even at the highest care level (Pflegegrad 5), statutory coverage pays only €2,005/month for inpatient care.
The remaining cost — often called the "Eigenanteil" (personal contribution) — must be paid from savings, pension, or family support. The average Eigenanteil for nursing home care in Germany is currently around €2,500/month.
This means: without supplementary coverage, a typical nursing home stay can consume over €30,000 per year from personal assets.
Private supplementary care insurance
There are two main types of supplementary Pflegeversicherung:
1. Pflegetagegeld (Daily care benefit)
- Pays a fixed daily amount based on your care level
- You can use the money freely — no receipt required
- Premiums depend on entry age and daily rate
2. Pflege-Bahr (State-subsidized)
- The state pays a €5/month subsidy (€60/year) if you contribute at least €10/month
- Open to anyone regardless of health status (Kontrahierungszwang)
- Benefits are limited — Pflege-Bahr alone rarely closes the full gap
3. Pflegekostenversicherung (Cost reimbursement)
- Reimburses actual care costs above the statutory level
- More comprehensive but requires receipts for reimbursement
PKV vs. GKV: care insurance differences
The statutory care benefits are identical in GKV and PKV — both systems provide the same Pflegepflichtversicherung benefits.
The key difference is in how premiums are calculated:
- GKV: Income-based (Umlageverfahren) — premiums rise with income and legislative changes
- PKV: Risk-based with aging reserves (Kapitaldeckungsverfahren) — premiums are more stable long-term
For supplementary care insurance, PKV policyholders often receive better conditions because their care premium already includes aging reserves.
Close your care coverage gap
We help you find the right combination of mandatory and supplementary care insurance.