Critical illness insurance in Germany (Schwere-Krankheiten-Versicherung or Dread-Disease-Versicherung) pays a one-off lump sum when a listed illness such as cancer, heart attack or stroke is diagnosed at the defined severity. For EUR 50,000 a healthy 42-year-old pays about EUR 35 a month. Mental illness and back problems are usually not covered, so it does not replace disability cover.
Published premium example for an employed non-smoker aged 42, cover until 67, no pre-existing conditions, January 2026.
Example
Typical range
Sum insured EUR 10,000
about EUR 13 a month
Sum insured EUR 50,000
about EUR 35 a month
Sum insured EUR 100,000
about EUR 61 a month
Usual range by age and sum
about EUR 10 to 60 a month
For comparison: BU cover
about EUR 50 to 300 a month
Premium examples from a published German market overview dated 27 January 2026.
The calculation in the example is an estimate from quoting practice.
Your premium depends on age, health, sum and smoking; we obtain the exact quote.
Worked example
Self-employed woman, 42, with a mortgage
Because of earlier depression she cannot get BU cover and takes out critical illness insurance of EUR 75,000 until 67.
Premium in the example
about EUR 47 a month
Premiums over 25 years
about EUR 14,100
Heart attack at 50, after three months
EUR 75,000 at once
New depression at 50
EUR 0
A covered diagnosis pays more than five years of a EUR 1,200 mortgage rate. Against the most likely cause in her case it gives no protection.
How critical illness insurance works
Critical illness insurance pays a fixed sum once a covered illness is diagnosed. Whether you can still work does not matter. You can use the money freely, for example for your mortgage, home adaptations or time off.
It only pays if the illness reaches the severity described in the policy terms. Early stage cancer often does not count. Between diagnosis and payment there is usually a survival period of 14 or 28 days; for heart attack, stroke or coma it is often three months.
Which diagnoses are covered
Each tariff has its own list. Cancer, heart attack and stroke are almost always included because most claims fall into these groups. What matters is not the length of the list but how narrowly each illness is defined.
Diagnosis
What to check in the terms
Cancer
from which stage it pays; early forms are often excluded
Heart attack and stroke
which medical evidence is required and how long the survival period is
Kidney failure
often only covered if both kidneys fail
Deafness
often only from 80 percent hearing loss even with a hearing aid
Accident injuries
loss of limbs or severe burns, partly overlapping with accident insurance
The big gaps
Critical illness insurance does not cover the most common reasons why people stop working: mental illness such as depression, and back, joint and rheumatic problems. According to market analyses, mental illness alone accounts for more than a third of all disability claims in Germany.
The contract usually ends after the payout, so a second serious illness is no longer covered. And a lump sum of EUR 50,000 does not replace twenty years of income.
Critical illness or disability cover
Occupational disability insurance (Berufsunfähigkeitsversicherung, BU) pays a monthly pension for any health reason, including mental illness and back problems. It costs about EUR 50 to 300 a month depending on job and health. If you can get it, it protects you better.
Critical illness insurance makes sense if you cannot get BU or earning incapacity cover (Erwerbsunfähigkeitsversicherung), for example after mental health treatment. It also asks health questions: the insurer may add a surcharge, exclude an illness or decline.
When you do not need it
If you already have BU cover and enough savings for treatment and adaptations, extra critical illness insurance adds little. Cancer-only insurance, which pays for one illness only, is not a good stand-alone choice.
As a top-up it can help self-employed people who need to keep their business running, or families with a mortgage.
Step by step
First check whether BU or earning incapacity cover is possible.
Set the amount by need: remaining loan, adaptations, time off.
Compare terms: definition of each illness, severity, waiting and survival periods.
Answer the health questions fully and honestly.
Check whether the premium is fixed or may rise up to a gross premium.
Checklist
Cancer, heart attack and stroke clearly defined
Waiting period from the start known, often three or six months
Survival period after diagnosis no longer than 28 days where possible
Premium guaranteed or maximum premium stated
Sum matches loan and savings
Common mistakes
Treating the list of illnesses as full income protection
Buying critical illness cover without checking BU first
Not asking for a plain explanation of medical terms in the policy
Leaving out previous illnesses in the application
Questions and answers
Frequently asked
Does it pay for depression?
Almost never.
Mental illness is not among the covered critical illnesses.
Is the payout taxable in Germany?
No, the lump sum is generally tax free.
What happens after the first payout?
The contract usually ends, so a later second illness is not covered.
Are there health questions?
Yes.
Previous illnesses can lead to a surcharge, an exclusion or a refusal.
Is cancer-only insurance worth it?
Not as the only cover, because it pays nothing for any other illness.
How high should the sum be?
Enough for the remaining loan, adaptations and one or two years off, often EUR 50,000 to 100,000.
