Why is my long-term care insurance premium going up?
In short
Why is my long-term care insurance premium going up? In Germany usually for two reasons: the insurer pays more benefits than calculated and may then adjust from a 10 percent deviation with an independent trustee's approval. Or your tariff has indexation (Dynamik) that raises benefit and premium regularly. Getting older alone is not a reason, ageing is built into the premium.
Premium examples for a care allowance of up to EUR 1,500 a month from published market examples, 2026.
Example
Typical range
Joining at 20
about EUR 9.70 to 14.10 a month
Joining at 30, strong tariff
around EUR 40 a month
Joining at 50, strong tariff
around EUR 100 a month
Joining at 60
about EUR 86 to 160 a month
Figures without later reviews or indexation.
How much a tariff will be adjusted cannot be predicted;
the legal basis is section 203 VVG and section 155 VAG.
Worked example
Care allowance policy taken out at 45, review after eight years
The insurer announces a premium review. What the policyholder can do.
Previous premium
EUR 60 a month
Announced increase
plus 15 percent, so EUR 69
Takes effect
from the second month after notification
Alternative
tariff switch with ageing reserve credited
Cancelling would be expensive, a new policy at 53 costs more. It makes sense to ask the insurer for equivalent tariffs with a lower premium.
Premium review: when care costs more than calculated
A long-term care daily allowance (Pflegetagegeld) from a health insurer is calculated like German private health insurance, on a lifetime basis. Every year the insurer compares actual and calculated benefits. If they differ by more than 10 percent, it must review all premiums in the tariff and adjust them if the gap is not temporary. A care pension from a life insurer follows different rules.
Your long-term care insurance gets more expensive this way when more policyholders claim or need care for longer than calculated. For mortality there is a separate threshold of 5 percent.
Indexation: the increase you chose
Many long-term care top-up policies raise the care allowance regularly so that it keeps pace with care costs. The premium goes up too. Assuming 2 percent cost growth, EUR 1,500 today equals about EUR 2,461 after 25 years.
Whether and how often you can decline an increase is set out in your policy wording. Check there whether future increase rights lapse after you decline several times.
Reason
Who decides
Your choice
Premium review after benefit deviation
insurer with trustee
pay, switch tariff or cancel
Indexation
agreed in the contract
usually accept or decline
Higher benefit at your request
you
loading or exclusion for the extra benefit possible
Getting older
built into the calculation
not a reason for a review
Your rights when the premium goes up
The insurer must notify you with reasons, and the increase only applies from the second month after that. Within two months of receiving the notice you may cancel with effect from the date of the increase. For long-term care insurance that is rarely wise, because a new contract starts at an older age with new health questions.
A tariff switch with the same insurer is often better. Under section 204 VVG you may move to tariffs with similar cover, and your ageing reserve (Alterungsrückstellung) is credited.
State subsidised Pflege-Bahr
The state subsidised Pflege-Bahr is also long-term care insurance calculated on a lifetime basis. The subsidy of EUR 5 a month stays the same, but your own share can rise after a review.
When a Pflege-Bahr premium goes up, check whether an additional unsubsidised tariff makes more sense than simply paying more.
Step by step
Check in the letter whether it is a premium review or indexation.
Note the deadline for declining or for special cancellation.
Ask the insurer about equivalent tariffs for a switch.
Consider a new policy elsewhere only with a confirmed offer after health questions.
Then decide whether to pay, switch or reduce the benefit.
Checklist
Reason for the increase understood
Two month deadline in the calendar
Tariff switch with the same insurer checked
Indexation accepted or declined consciously
New contract only once confirmed, before the old one ends
Common mistakes
Cancelling at once and buying a new policy at an older age
Confusing indexation with a premium review
Declining indexation without reading the consequences in the terms
Cutting the benefit without recalculating your care gap
Questions and answers
Frequently asked
Why is my long-term care premium rising although I was not ill?
Reviews apply to the whole tariff, not to you personally.
Your own health plays no role.
Can the insurer raise premiums as it likes?
No.
It needs a lasting deviation in the calculation basis and the approval of an independent trustee.
Can I decline indexation?
Usually yes.
Whether future increases lapse afterwards is set out in your policy wording.
Does a tariff switch help?
Often.
You keep your ageing reserve,
but for extra benefits the insurer may ask for a loading or an exclusion.
