Loan for the costs of orthodontic treatment: Your guide to financing
25.04.2025
12
Minutes
Katrin Straub
Managing Director at nextsure
An orthodontic treatment in adulthood can cost more than €6,000, which is rarely 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 tax.
The topic in brief and concise terms
The cost of orthodontic treatment for adults often ranges from €2,500 to €10,000 and is only rarely covered by statutory health insurance.
A bank loan often offers more flexibility and better terms than instalment payments directly with the orthodontist.
Costs borne personally can be deducted for tax purposes as exceptional expenses, provided they exceed the reasonable threshold.
Cost analysis: These are the costs you can expect with teeth straightening
Orthodontic treatment is an investment whose cost varies considerably depending on the method. For a conventional fixed brace, you should expect to pay at least €2,500. More discreet options such as clear aligner trays cost between €3,500 and €6,000. In cases of complex misalignments or lingual braces, total costs can even rise to over €10,000. Orthodontists are required to provide you with a detailed treatment and cost plan in advance. This plan lists all planned services and their costs transparently. These figures illustrate why a financing solution becomes necessary for most patients.
Statutory health insurers are reluctant to cover costs for adults, which underlines the need for private financing solutions.
Health insurance coverage for adults: A reality check
For adults, coverage by statutory health insurance (SHI) is the absolute exception. SHI pays only in cases of severe jaw anomalies that require a combined maxillofacial surgery and orthodontic treatment. Purely aesthetic corrections or treatment for orthodontic indication groups (KIG) I and II must be paid for entirely out of pocket. Even for children and adolescents, coverage is provided only for KIG III to V. For more than 90 per cent of adults, this means paying the full cost themselves. A dental supplementary insurance policy for orthodontic treatment taken out early can help here, but often involves waiting periods of eight months.
Given this coverage gap, alternative financing models are moving into focus.
Three ways to finance: loan, instalment payments and insurance compared
If you have to cover the costs yourself, there are essentially three options available to you. Each has specific advantages and disadvantages that you should weigh carefully.
Bank loan: A classic medical loan offers maximum flexibility in terms of term and instalment amount. You can borrow from 1,000 euros to over 10,000 euros and compare the terms.
Instalment payment at the orthodontist: Many practices offer financing directly on site, often through external providers. This is often interest-free for the first twelve months.
Dental supplementary insurance: This option only makes sense as a preventative measure. Insurance that covers braces must be taken out well before treatment begins, 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 has ended. The loan often offers greater 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 in more detail.
How the loan for orthodontic treatment works
A loan to cover the costs of orthodontic treatment is essentially an unsecured instalment loan. You apply to a bank for the amount you need, for example €5,000. Once approved, you can settle the orthodontist’s bill in full straight away. Repayment to the bank takes place in fixed monthly instalments over an agreed term, for example 48 months. A longer term leads to lower instalments, but potentially higher total costs, as you can see with a long-term loan.
Here is a simple calculation example:
Cost of treatment: €4,800
Loan amount: €4,800
Term: 36 months
Effective annual interest rate: four per cent
Monthly instalment: approx. €142
A clean household budget is the basis for every loan application. With a detailed online household budget calculation, you can realistically assess your financial capacity and determine the optimum instalment.
In addition to direct financing, there is also a way to reclaim part of the costs from the state.
Expert tip: How to claim treatment costs for tax purposes
The costs of your orthodontic treatment can be claimed in your tax return as extraordinary expenses. This applies to all expenses that were not reimbursed by insurance and are medically necessary. The tax office deducts so-called reasonable expenses from your total costs. This threshold depends on your income, marital status and the number of your children, and ranges between one and seven per cent of your income. All costs that exceed this individual threshold reduce your tax liability.
To deduct the costs, proceed as follows:
Collect all invoices and proof of payment.
Request a medical certificate confirming the medical necessity from your orthodontist.
Enter the total costs in the “Extraordinary Expenses” schedule of your tax return.
Careful planning can pay off here and noticeably reduce your overall financial burden.
The final step: Request a personalised 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, instalment payments or insurance is the best solution depends on your individual situation. Professional advice protects you from poor decisions and unfavourable terms. We support you in developing the optimal financing strategy for your new smile.
Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive specific suggestions for improvement.
More useful links
The Consumer Advice Centre provides comprehensive information on co-payments, statutory health insurance benefits and additional costs for orthodontic treatment.
The Federal Ministry of Health provides an expert opinion on orthodontics.
The Tagesschau (NDR/WDR) provides an investigative report on braces and orthodontists.
The vdek (Association of Substitute Health Insurance Funds) examines expensive private services in orthodontics with no additional benefit in a magazine article.
The Berliner Morgenpost explains what parents need to know about additional costs for braces.
The Deutschlandfunk reports on the dispute over the medical benefits and costs of braces.
The Consumer Advice Centre also provides information on orthodontics for children and the associated costs.
FAQ
Which financing option is better: instalment payments with the doctor or a bank loan?
A bank loan is often more transparent and flexible. While instalment payments at the doctor’s surgery may initially be interest-free, high interest rates often apply later. A loan offers clear terms from the outset and enables you to find the most affordable offer by comparing options.
What are the interest rates on a loan for orthodontic treatment?
Interest rates depend on your creditworthiness, the loan amount and the term. Comparing different providers is therefore essential. The effective annual interest rates for consumer loans currently typically range between three and seven per cent.
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 surplus amount for other expenses or make free special repayments to shorten the term and save on interest costs. Check whether special repayments are possible before signing the contract.
Do I need a quote 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 guide for the bank when planning the financing.
Will dental insurance cover the costs if I take it out now?
No. Dental supplementary insurance does not cover treatments that were already started or recommended before the contract was concluded. In addition, there are usually waiting periods of several months. It is a preventive measure, not a solution for an acute need for financing.
What is the KIG classification and why is it important for me as an adult?
The orthodontic indication groups (KIG) are a system from one to five that assesses the severity of a misalignment of the teeth. Statutory health insurance only pays for children in stages three to five. For adults, KIG classification is usually only relevant for substantiating medical necessity for tax purposes.
