Premium increase in private health insurance

Under § 204 VVG, you have the right to switch to another plan with similar insurance cover within your company. Your ageing reserves accumulated over the years are credited in full and kept. In many cases this makes the internal change the first option, because it can lower the premium without you giving up the capital you have built up.

A switch to another company is possible but has a decisive disadvantage: the ageing reserves built up with your current insurer are largely lost. Only a share limited by law is transferred. A switch of provider can still be worth it, but it needs careful calculation and is mainly worth considering for younger policyholders with a short contract term.

If your insurer increases the premium, you have a special right of termination under § 205 (4) VVG. You can cancel the affected plan within two months of receiving the notice of change, with retroactive effect to the time of the increase. You should only cancel if follow-on cover without any gap is secured.

A premium adjustment is bound to clear requirements under § 203 VVG. It is permitted if the calculated benefit expenditure or the mortality rates have changed permanently. In addition, an independent trustee must review the adjustment and approve it. Whether the formal requirements are met in the individual case can be checked against the specific letter.

Yes, a premium adjustment is provided for by law. It is permitted under § 203 VVG if the calculated benefit expenditure or the mortality rates have changed permanently, and it must be reviewed and confirmed by an independent trustee. An increase always affects all policyholders of a plan equally.

That depends on the route. With an internal plan change under § 204 VVG, your ageing reserves are kept in full. If you change company instead, most of the reserves are lost, and only a share limited by law is transferred.

After a premium increase, you have two months to exercise the special right of termination under § 205 (4) VVG. The deadline starts when you receive the notice of change. The termination takes effect at the time the increase would have become effective.

In most cases, the internal plan change is the better choice, because the ageing reserves are kept and the premium can still fall. A switch of provider is more of an option for younger policyholders with a short contract term. Which route fits can only be said after comparing premium and benefits.