Pensions: Long Term Care Insurance Test

Pensions: Long Term Care Insurance Test

Close the gap in the case of nursing care with daily care allowance insurance
14.04.2015

The number of people in need of care in Germany is increasing. According to estimates by the Federal Statistical Office, around three million people in Germany will need help in five years. Statutory long-term care insurance alone is not enough for many. Private long-term care allowances are intended to close these gaps. Not everyone is equally good at it.

Statutory long-term care insurance is not enough for many. The need for long-term care in Germany is high. 2.6 million people in need of care in this country, 64 percent of whom are women. 70 percent of all people in need of care are cared for at home. The Ministry of Health announced these figures last summer. According to estimates by the Federal Statistical Office, around three million Germans will need help in five years. This maintenance costs money. The statutory long-term care insurance covers part of the costs. "But especially for people who cannot rely on private care from relatives, there is a large gap in care," explained the editor-in-chief of the magazine "Finanztest", Heinz Landwehr, according to a report by the dpa news agency.

Up to 2,000 euros must be paid between 540 and 2,000 euros - depending on the level of care - must be paid out of one's own pocket. "Of course, this calculation can look different in individual cases," explained Landwehr. "But it gives a realistic orientation on what people have to adjust to who want to provide for their care costs." Consumers can close this gap with daily care allowance insurance. For the current "Finanztest" edition (issue 5/2015), the goods testers examined 88 tariffs from 29 providers. Of these, 31 were without state funding, 29 were so-called subsidized nursing Bahr tariffs, and 28 tariffs were combined offers.

Nursing Bahr tariffs cannot close the gap One important finding from the test is that the pure nursing Bahr tariffs are in no case sufficient to close the gap across all nursing levels. It is said that they are more suitable for people with previous illnesses who would otherwise probably not be able to take out additional care insurance. They were therefore left out of the assessment. As early as 2013, “Finanztest” came to the conclusion that the so-called “nursing bahr” is in most cases not sufficient to cover the need for nursing care. Of the other tariffs, five were rated “very good”, 78 “good” and the rest “satisfactory”. The amount of the monthly contributions of the assessed tariffs depends, among other things, on the age of entry. For example, a 45-year-old customer pays around 56 euros per month for a “very good” contract. Depending on the tariff and level of care, the benefits here range from 540 euros to around 3,030 euros. It becomes more expensive for a 55-year-old. For a “very good” contract, he already has to pay around 87 euros per month. In case of care, he receives between 495 euros and 1,650 euros.

Long-term care allowance is not the most important policy. Project manager Sabine Baierl-Johna explained whether it makes sense to take out long-term care allowance as early as possible: "Younger prospective customers could get good coverage at a much cheaper price." for many years. "It is often not clear at a young age whether the contributions can be paid permanently." However, this is precisely what the experts believe is important, because if the contract is canceled, customers lose the paid-in money and are without protection in the event of care. In addition, long-term care allowance insurance makes sense, but experts believe that it is not the most important policy. "Private liability insurance and, depending on the situation in life, risk life insurance for the protection of the family have priority," said Landwehr. In addition, when in doubt, it is more important to make provisions for old age. (ad)

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