Long-term care supplementary insurance: actively shape financial security in the event of care needs and close gaps in care provision
09.05.25
4
Minutes
Katrin Straub
Managing Director at nextsure
Statutory long-term care insurance often covers only a fraction of the actual care costs. Private supplementary long-term care insurance closes this gap and protects your assets. Find out how to choose the right cover for your needs.
The topic in brief and concise terms
Statutory long-term care insurance covers only part of care costs; private supplementary long-term care insurance is therefore essential to avoid high out-of-pocket contributions of often more than EUR 1,500 per month.
There are various forms of long-term care supplementary insurance (e.g. care daily allowance, care costs, Pflege-Bahr), and the choice depends on individual needs and financial circumstances.
Factors such as waiting periods, health questions and specific benefits (e.g. for dementia) must be carefully checked before the contract is concluded in order to ensure optimal protection.
Understanding the care cost trap: figures and facts
The costs of a nursing home place are significant and continue to rise. In January 2024, the national average out-of-pocket contribution in the first year was €2,576 per month. This amount is made up of care costs, accommodation, meals and investment costs. Statutory long-term care insurance is designed as partial cover and therefore does not cover all expenses incurred. Many underestimate the coverage gap, often of more than €1,500. Those needing care or their relatives must bear this financial burden themselves. Without private supplementary long-term care insurance, this can quickly become overwhelming. The need for additional provision is thus clear.
Benefits of care levels: What basic coverage offers
Since 2017, there have been five care levels that reflect the need for support. Care level 1, for example, offers a relief amount of 125 euros per month. At care level 2, benefits for in-kind care services increase to up to 796 euros. For full inpatient care in a care home, the care insurance fund pays 1,319 euros at care level 3. At the highest care level 5, up to 2,096 euros can be provided for inpatient care. However, these amounts only partially cover the actual care costs. An overview of the statutory care benefits is important for determining needs. The remaining gap illustrates the importance of supplementary long-term care insurance.
Types of supplementary long-term care insurance: choosing the right option
There are various types of long-term care supplementary insurance to close the coverage gap. The best known are:
Long-term care daily allowance insurance: Pays an agreed daily rate, regardless of the actual costs. This is the most flexible and most common option.
Long-term care cost insurance: Reimburses the verified remaining costs after the statutory fund has made its prior payment.
Long-term care annuity insurance: Pays out a monthly pension in the event of long-term care, often only from higher care levels onwards.
State-subsidised Pflege-Bahr: Offers a subsidy of five euros per month with a personal contribution of at least ten euros.
The choice depends on your risk appetite and financial situation. A comparison of supplementary long-term care insurance tariffs is essential. This is how you find the cover that is right for you.
Practical example: This is how long-term care supplementary insurance works in the event of a claim
Suppose Mrs Müller (75 years old) requires full inpatient care (care level four). The nursing home costs amount to 3,500 euros per month. Statutory long-term care insurance pays 1,855 euros for this (as at 2025). This leaves a coverage gap of 1,645 euros. If Mrs Müller has taken out daily care allowance insurance with a daily rate of 50 euros, she receives an additional 1,500 euros (50 euros x 30 days). Your out-of-pocket cost is therefore reduced to just 145 euros. Without this cover, she would have to pay the 1,645 euros from her pension or assets. This example shows the immense relief provided by health and long-term care provision. The financial worry in the event of needing care is significantly reduced.
Expert depth: waiting periods, health questions and Pflege-Bahr
When taking out long-term care supplementary insurance, there are a few details to bear in mind. Many policies include health questions; pre-existing conditions can lead to risk surcharges or rejection. Some insurers offer policies with no waiting period, so cover applies from the start of the contract. Others have waiting periods of up to three or five years. The state-subsidised Pflege-Bahr does not require health questions, but does have a general waiting period of five years. Our expert tip: Clarify these points carefully before signing the contract. The conditions for dementia benefits are also an important aspect, as special rules often apply here. Addressing these issues at an early stage ensures you get the best protection.
Optimise contract terms: termination and adjustment
A long-term care supplementary insurance policy can usually be cancelled with three months’ notice to the end of the insurance year. Many insurers waive their ordinary right of cancellation during the first three years, which gives you additional security. In the event of premium increases, there is often a special right of cancellation. However, it is rarely advisable to cancel an existing policy without an adequate replacement, as contributions already paid and rights acquired may be lost. Instead, check options such as an adjustment of premiums or a change of tariff within the company. A compulsory insurance is the statutory one, the private supplement is your choice. A careful review of the contract details is crucial.
The complexity of long-term care provision requires an individual assessment. There is no one-size-fits-all recommendation. Your personal circumstances, financial options and individual wishes are decisive. Use our expertise for a tailored solution. At nextsure, we help you make sense of the maze of tariffs and find the long-term care supplementary insurance that suits you. Comprehensive advice can help you effectively close the care gap in the event of long-term care needs. This not only protects your assets, but also your independence in later life. The right provision gives you the freedom to focus on what matters most.
Request your individual risk analysis now: Have your insurance situation checked free of charge and receive specific suggestions for optimisation.
More useful links
Federal Ministry of Health offers comprehensive information on German long-term care insurance.
Federal Ministry of Health provides a detailed overview of the benefits of long-term care insurance.
Federal Statistical Office (Destatis) provides up-to-date statistics on long-term care in Germany.
Federal Statistical Office (Destatis) offers a comprehensive statistical report on long-term care outcomes in Germany.
Consumer Advice Centre provides information about supplementary long-term care insurance as sensible protection in old age.
Consumer Advice Centre gives advice on taking out supplementary long-term care insurance with state funding.
National Association of Statutory Health Insurance Funds offers basic information on statutory long-term care insurance.
PKV (Association of Private Health Insurers e.V.) explains how private long-term care insurance works.
PKV (Association of Private Health Insurers e.V.) provides a brochure on private mandatory long-term care insurance.
Wikipedia offers a comprehensive overview of long-term care insurance in Germany.
FAQ
How much does long-term care supplementary insurance cost per month?
The costs vary greatly depending on the age at entry, health condition and desired scope of cover (e.g. the amount of daily allowance). Younger people often pay only 20 to 50 euros a month for good cover.
Do I have to answer health questions when taking out supplementary long-term care insurance?
Yes, for most tariffs. An exception is the state-subsidised Pflege-Bahr, which can be taken out without a health check, but it has a five-year waiting period.
What happens if I can no longer pay the premiums for supplementary long-term care insurance?
Many contracts offer options such as a premium waiver or a reduction in benefits. Cancellation should be the last option, as insurance cover and paid-in contributions may be lost.
Does the long-term care supplementary insurance also provide cover abroad?
Benefits abroad depend on the tariff. Some insurers provide cover worldwide, others limit benefits to the EU or provide specific arrangements. This should be clarified in advance.
Can I also take out long-term care supplementary insurance for my parents?
Yes, you can take out supplementary long-term care insurance for your parents, provided they agree and answer the health questions truthfully. You would then be the policyholder, and your parents would be the insured persons.
What role does the care level play in the amount of benefits?
The level of care is crucial for the benefit amount. As a rule, the payout increases with a higher level of care. Many tariffs already provide benefits from care level one, and some even for diagnosed dementia without a care level.
