Four things set your premium
| Factor | How it works |
|---|---|
| Age at entry | The single biggest lever. The younger you join, the longer the ageing reserve has to build. Joining at 30 and at 45 are different products at different prices. |
| Your health at that moment | Assessed once, at the start. Existing conditions can mean a surcharge or an exclusion. After that, your health no longer changes your premium. |
| The cover you choose | Single room and consultant treatment, dental cover, alternative medicine, worldwide protection. Every element has a price. |
| Your deductible | An excess you carry yourself each year lowers the premium immediately. It also means you pay more when you are ill. |
Note what is not on that list: your income. This is the structural difference from the statutory system, where the contribution is a percentage of earnings up to a ceiling.
What your employer paysHalf, up to a ceiling
If you are employed, your employer pays half of your private premium, capped at what they would have paid into the statutory system. For 2026 that ceiling is 613.22 € per month for health and long-term care combined, of which 508.59 € is health cover.
The practical effect: up to a premium of roughly 1,226 €, you and your employer split it evenly. Above that, every further euro is yours alone.
The cheapest premium is rarely the best contract. A low price usually means one of three things: a high deductible, thin benefits, or a tariff calculated in a way that catches up with you later. Ask which of the three it is.
Where it gets expensive
| Situation | Why it costs |
|---|---|
| Children | Every family member needs their own contract and their own premium. The statutory system covers children at no extra cost under certain conditions. This is the clearest case where staying statutory can be the better decision. |
| A non-earning partner | Same reason. There is no free co-insurance in the private system. |
| Retirement | Your income falls, the premium does not follow it down by itself. There are instruments that reduce it in advance, and they have to be chosen early to work. |
Common questions
Is private cover cheaper than the statutory system?
Sometimes, and that is the wrong question. The statutory maximum contribution in 2026 is around 1,226 € per month including long-term care, split between you and your employer. A private premium can be lower for the same person, but the two are not buying the same thing. Compare what is covered before you compare what it costs.
Does my employer contribute?
Yes. An employer pays half of your private premium up to a legal ceiling, which in 2026 is 613.22 € per month for health and long-term care together. Above that ceiling the rest is yours.
Will the premium rise as I get older?
Not because you age. Ageing is priced in from the start and pre-funded through an ageing reserve. Premiums rise because medical costs rise, and adjustments are only permitted when the deviation exceeds a legal trigger and an independent trustee agrees.
What is an ageing reserve?
In German, Alterungsrückstellung. In your younger years you pay more than you consume, and the difference is invested to hold down the cost of your later years. Across the German market this reserve stood at roughly 366 billion euros when last checked on 2 September 2026.
Send me your situation, I will tell you where you stand
No form, no obligation, and an answer in plain English. If the statutory system is the better fit for you, I will say so. I only work on private health insurance, so I have no reason to sell you anything else.
This page is general information on German law and market practice as at September 2026. It is not legal or tax advice. Figures are stated with their source and date in the German version of each topic.