Should I consider obtaining supplemental health insurance coverage?
It's commonly understood that elderly individuals who rely on care services often need more assistance than what statutory long-term care insurance offers. Additional policies promise financial security, but with varying strategies.
A policy that covers the difference between state benefits and typically expensive care costs - sounds appealing. However, private long-term care supplements should be scrutinized thoroughly.
As per the North Rhine-Westphalia Consumer Advice Centre, these supplements rarely cover the anticipated need for home care services or a room in a nursing home.
The advice is: For individuals aged under approximately 50 years, a long-term care supplement might not be worth it, according to consumer advocates. Afterwards, one's financial situation in retirement should be evaluated: What can be anticipated from state pensions? Does one have a private pension? Any assets? Could or would family members be capable of covering care costs, partially or fully? And what could one actually afford for supplementary insurance?
Individuals, after self-evaluation, considering a long-term care supplement, should be well-versed in common models:
Care Allowance Insurance
This is the most popular choice. A daily allowance is paid in case of care dependency, regardless of care arrangement. However, the full daily allowance is typically only paid from care grade 5. Consumer advocates advise against tariffs without any benefit claims for outpatient care, as most people are cared for at home.
Three additional tips:
- Opt for a company offering a waiver of premiums in case of care dependency - not just in exceptional grade 5 cases.
- Choose a contract where confirmation of care need from statutory health insurance is sufficient - no regular medical assessments by the insurer are required.
- Compare prices, as the differences are considerable.
Subsidized Long-term Care Tariffs
Tariffs with certain conditions are subsidized by the state with €5 per month. The advantage: Anyone can be accepted, regardless of age and health status. Disadvantages include: Benefits are often minimal. The premium must be paid and reduces the payout. The consumer advice centre also advises against combining this with other insurances.
Care Cost Insurance
Only proven care costs are covered here. These are usually services from the statutory long-term care insurance catalogue, where the insurance covers part or all of the individual contribution. Accommodation and food costs in a nursing home are usually not covered. And payment is often not made for care grade 1.
Care Pension Insurance
Regardless of actual costs, an agreed care pension is paid out, which can be topped up by surplus participation. Whether the full or only a partial care pension is paid out depends on the care grade. The money can then be used freely. Compared to other long-term care supplements, the premium is often twice or thrice as high.
After evaluating one's financial situation, it may be necessary to consider a tax declaration to determine potential deductions or exemptions related to long-term care expenses. Subsequently, when deciding on a long-term care supplement, it's crucial to understand that Care Allowance Insurance is the most popular choice, often offering a daily allowance in case of care dependency.
