You have to earn that much to insure yourself privately

If you want to take out private insurance, you not only have to meet a number of professional and health criteria, you also have to exceed a certain income limit. We explain to you how much money you have to earn in order to take out private insurance and explain when it is worth changing health insurance.

In Germany there are two different types of insurance in the healthcare system: statutory and private health insurance. In contrast to statutory health insurance (GKV), private health insurance (PKV) privately organized. In Germany are noisy Federal Ministry of Health slightly more than ten percent of people have private health insurance.

Who can take out private insurance?

Anyone in Germany who does not have access to private health care has access to § 6 SGB V is compulsorily insured in the GKV. These include, for example, the self-employed and freelancers, as well as soldiers and civil servants who are entitled to benefits. Students also have the option of opting for private health insurance for the duration of their studies.

In addition, all employees with an income above the compulsory insurance limit insure privately. It is also known as the annual income limit (JAEG) and is the decisive factor for classification into private health insurance. This means: You have to show a certain income to insure them privately.

You have to earn that much to insure yourself privately

For the year 2023 the legislator has set the limit for compulsory insurance at 66,600 euros per year – or a monthly income of 5,500 euros. If your annual salary is above this value, you are exempt from insurance. You can then choose whether you want statutory or private insurance.

The compulsory insurance limit does not apply to everyone, but initially regulates the limits for all employees who are subject to social security contributions. For the occupational group of the self-employed who are not subject to compulsory insurance or for civil servants who are exempt from insurance, it does not apply.

If the respective requirements are met, for example in relation to age at entry or state of health, members of these groups can always take out private health insurance.

In addition, there are some exceptions for people for whom the compulsory insurance limit is simply not relevant, such as students and housewives or househusbands. The JAEG does not apply to doctors in private practice either.

Should you get private insurance?

But not only because you are allowed to take out private health insurance does it also mean that this step makes sense for you. Private health insurance means access to more comprehensive medical services in many areas. At the same time, it is also very expensive.

Because the contributions are increasing, especially for older people – regardless of how much you earn or what you get as a pension. Private health insurance only makes sense if you are absolutely sure that you can afford the contributions in the long term.

These factors play a role in the decision

When considering whether to switch, it pays to five factors consider:

• Your age: If you are younger than about 40 years old, interest and compound interest will still play into your hands. Because over the years, private health insurance is getting more and more expensive. Thanks to the so-called age reserve, however, this increase is subject to a limit. However, you need to have saved as much money as possible for as long as possible. If you change late, you won’t have time to save.
• Your health: Unlike in statutory health care, private insurers are allowed to choose their customers themselves. Before admission, there is a thorough health check. Because those who already have previous illnesses will probably incur higher costs for the insurer than a healthy person and will therefore find it more difficult to take out private health insurance.
• Your family planning: If you are single, there are probably no problems with private health insurance. However, if you want a family, you must also insure your children privately, for example. Because there is no free family insurance like the GKV. Even during parental leave, you usually have to continue paying your private health insurance contributions. So you should be sure that you can afford it.
• Your earnings and wealth: You have to be able to afford the contributions not only now but also in the future. Because once privately, always privately – returning to statutory health insurance is often very difficult or even impossible. This means that even with a small pension you have to pay similarly high contributions. And if you have a family, you pay for them too.
• Your job: Some professional groups find it difficult to insure themselves privately. Because if your job is associated with a particularly high risk to your health, you must also expect an increased risk premium. And even if you have a job that outwardly appears insecure as far as your income is concerned, most insurers could decide against you.

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