In public health insurance, your contribution is based on your salary. Whereas in private health insurance, the contribution depends on your state of health and your desired benefits. Here you can find out why your entry age also plays a role.
Reviewedby our insurance experts
If you've ever filled out an application for private health insurance, you know that we're curious by nature. The fact that we ask you some private questions is not just because we want to get to know you better. There are also legal reasons behind it.
What is checked when taking out a private health insurance?
In order to protect the insured group from excessive charges, we conduct a health check - just like any other private health insurance. We also ask you about your salary, because only those who earn more than the annual income threshold (€69,300ƒ) are allowed to take out a private health insurance in Germany. We are also interested in how old you are when you decide to take out a private health insurance.
Contribution factors for privately insured persons
While public health insurance collects a percentage of your salary as a contribution, the private health insurance system has a different calculation basis.
Three factors count here:
your health condition at entry
your desired scope of services
your age at entry
Private health insurance insures you against health risks and charges a contribution that corresponds to your individual risk. A "risk factor" and basis for the calculation is your age of entry.
Why is the age of entry so relevant?
Still the dream of eternal youth is unfulfilled, so we have to face the fact: As we age, the body breaks down and is more susceptible to disease. The older you get, the more likely you are to fall ill.
The higher the age of entry, the higher the risks of an insured person. That's why it's almost impossible to switch to private health insurance after 55. However, this does not mean that your contribution automatically increases with age. That is why private health insurance has developed the age reserves: If you are young and healthy, you pay a little more than necessary to compensate for rising health costs as you get older and into retirement.
Now it's also clear why we generally recommend that you opt for private health insurance as early as possible. The earlier you join, the more ageing provisions you build up. Our savings calculator clearly shows the difference a higher entry age makes.
Determination of the age of entry in private health insurance
You are as old as you are, there is no doubt about that. Nevertheless, there are subtle differences in the private health insurance actuarial age of entry. Private health insurances can use different calculation methods to determine your entry age.
3 common methods of calculating your age in private health insurance:
Actual insurance age: Your actual age at the start of insurance counts.
Age by calendar year: Private health insurance deducts your year of birth from the year in which you take out your private health insurance. If you were born in 1993 and take out PKV in 2022, your entry age is 29.
Group age: For young people under 20, there are rates that target different age groups, for example, children up to 16. Since young insured persons often incur fewer costs, the insurance companies thus save on administrative expenses.
FAQ's on the age of entry:
There are different calculation methods. For example, the insurance company either bases its calculation on your actual age at the start of the insurance or deducts your year of birth from the year in which the insurance begins.
In the private health insurance, the age of entry is the age of a policyholder at the beginning of the insurance coverage?
Just like the state of health of an insured person, age is also a risk factor. Statistically, the older an insured person is, the more costs he or she incurs. That's why it pays to take out a private health insurance early. This way, you build up sufficient age reserves for later and start with favorable contributions.
HIER SCHREIBTEspen Markus Mjøs
Espen Markus - originally from Norway - is sales agent in ottonova's <english sales team. He's in contact with potential customers every day and answers Expats' questions about German health insurance.