Credit for the cost of orthodontic treatment: Your guide to financing
25 Apr 2025
5
Minutes
Katrin Straub
CEO at nextsure
Orthodontic treatment in adulthood can incur costs of over €6,000, which are seldom covered by health insurance. A targeted loan can make this financial hurdle manageable. This article shows you how to finance the treatment and even save on taxes in the process.
The topic in brief and concise terms
The cost of orthodontic treatment for adults often ranges between €2,500 and €10,000 and is seldom covered by statutory health insurance.
A bank loan often offers more flexibility and better conditions than direct installment payments at the orthodontist.
The costs borne by yourself can be deducted from tax as an extraordinary burden, provided they exceed the reasonable burden limit.
Cost Analysis: These are the expenses to expect for orthodontic treatment
Orthodontic treatment is an investment, with costs varying significantly depending on the method. You should expect to pay at least €2,500 for a conventional fixed brace. More discreet options such as clear aligner trays range from €3,500 to €6,000. In cases of complex misalignments or lingual braces, total costs can rise to over €10,000. Orthodontists are required to provide you with a detailed treatment and cost plan in advance. This plan transparently lists all planned services and their costs. These figures demonstrate why a financing solution becomes necessary for most patients.
Public health insurance companies are cautious when it comes to covering costs for adults, which underscores the need for private financing solutions.
Insurance coverage for adults: A reality check
For adults, coverage by the statutory health insurance (GKV) is an absolute exception. The GKV only pays for severe jaw anomalies that require a combined maxillofacial and orthodontic treatment. Purely aesthetic corrections or treatments of orthodontic indication groups (KIG) I and II must be paid for entirely out of pocket. Even for children and adolescents, benefits are only provided for KIG III to V. For over 90 percent of adults, this means full self-financing. An early dental supplementary insurance for orthodontics can help here, but it often has waiting periods of eight months.
In light of this coverage gap, alternative financing models are becoming the focus.
Three Ways to Finance: Loan, Instalment Plan, and Insurance Compared
If you have to bear the costs yourself, you essentially have three options available. Each has specific advantages and disadvantages, which you should carefully weigh.
Bank loan: A classic medical loan offers maximum flexibility in terms of duration and instalment amount. You can take out loans from 1,000 euros to over 10,000 euros and compare conditions.
Installment payment at the orthodontist: Many practices offer financing directly on site, often via external service providers. This is often interest-free for the first twelve months.
Dental supplementary insurance: This option is only sensible as a preventive measure. Insurance that covers braces must be taken out long before the start of treatment, as ongoing or recommended treatments are excluded.
Our expert tip: Compare the effective annual interest rate of a bank loan with the total cost of an instalment plan after the interest-free period. The loan often offers more transparency and better conditions over the entire term.
The bank loan often proves to be the most flexible and transparent option, which we will now examine more closely.
How the credit for orthodontic treatment works
A loan for the costs of orthodontic treatment is essentially an installment loan for personal use. You apply for the required amount, for example, 5,000 Euros, from a bank. Once approved, you can immediately pay the orthodontist's bill in full. Repayment to the bank is made in fixed monthly installments over an agreed term, such as 48 months. A longer term results in lower installments but potentially higher overall costs, as you can see with a long-term loan.
Here's a simple example calculation:
Cost of treatment: 4,800 Euros
Loan amount: 4,800 Euros
Term: 36 months
Effective annual interest rate: four percent
Monthly installment: approx. 142 Euros
A clear household budget is the foundation for any loan application. With a detailed online household budget, you can realistically assess your financial capability and determine the optimal rate.
In addition to direct financing, there is also an option to reclaim part of the costs from the state.
Expert Tip: How to Claim Treatment Costs for Tax Purposes
You can claim the costs of your orthodontic treatment as extraordinary expenses in your tax return. This applies to all expenses that have not been reimbursed by an insurance company and are medically necessary. The tax office deducts a so-called reasonable burden from your total costs. This threshold depends on your income, marital status, and the number of your children, and ranges between one and seven percent of your income. All costs exceeding this individual threshold can reduce your tax burden.
To deduct the costs, proceed as follows:
Gather all invoices and proof of payment.
Request a certificate of medical necessity from your orthodontist.
Enter the total costs in the 'Extraordinary Expenses' section of your tax return.
Smart planning can pay off here and noticeably reduce the overall financial burden.
The final step: Request an individual risk analysis
Financing orthodontic treatment is an important decision with long-term financial implications. Careful planning and comparing different options are essential. Whether a loan for your dental health, an installment plan, or insurance is the best solution depends on your individual situation. Professional advice protects you from making poor decisions and encountering unfavorable conditions. We support you in developing the optimal financing strategy for your new smile.
Request a personalized risk analysis now: Have your insurance situation reviewed free of charge and receive specific optimization suggestions.
More useful links
Die Verbraucherzentrale offers comprehensive information on personal contributions, health fund benefits, and additional costs for orthodontic treatments.
The Federal Ministry of Health provides a report on orthodontics.
The Tagesschau (NDR/WDR) offers an investigative report on braces and orthodontists.
The vdek (Association of Substitute Health Insurance Funds) highlights expensive private orthodontic services without additional benefit in a magazine article.
The Berliner Morgenpost informs about what parents need to know regarding additional costs for braces.
The Deutschlandfunk reports on the debate about the medical benefits and costs of braces.
The Verbraucherzentrale also provides information on children's orthodontics and the associated costs.
FAQ
Which financing option is better: instalment payments at the doctor's or a bank loan?
A bank loan is often more transparent and flexible. While instalment payments at the doctor's may initially be interest-free, they often incur high interest later on. A loan offers clear terms from the outset and allows you to find the best deal through comparisons.
What are the interest rates for a loan for orthodontic treatment?
Interest rates depend on your creditworthiness, the loan amount, and the term. Therefore, comparing different providers is essential. The effective annual interest rates for consumer loans currently typically range between three and seven percent.
What happens if the treatment ends up being cheaper than the loan taken out?
If you have taken out a loan for unrestricted use, you can use the excess amount for other expenses or make special repayments free of charge to shorten the term and save on interest costs. Check the possibility of special repayments before signing the contract.
Do I need an estimate from the orthodontist for the loan application?
Yes, the orthodontist's treatment and cost plan is the basis for your loan application. It confirms the amount required and serves as an important reference point for the bank's financial planning.
Does a dental supplementary insurance cover the costs if I take it out now?
No. Dental supplementary insurance does not cover treatments that have already begun or been recommended before the contract was concluded. Additionally, there are usually waiting periods of several months. It is a preventive measure, not a solution for an acute financial need.
What is the KIG classification and why is it important for me as an adult?
The Orthodontic Indication Groups (KIG) are a system ranging from one to five that assesses the severity of a dental misalignment. The statutory health insurance only provides coverage for children at levels three to five. For adults, the KIG classification is mostly relevant to support the medical necessity for tax declarations.
