Minimum contract term in private health insurance: what you need to know before you sign

The minimum contract term in private health insurance is the period for which the contract stays binding after it is concluded. Ordinary termination before this period ends is not possible. The legal basis is § 205 (1) VVG, which allows an agreed minimum contract term of up to two years.

Two years from the start of the contract are the standard. After that, the contract can be canceled with ordinary notice under the notice period of § 205 VVG. Separate rules apply to extraordinary termination.

The minimum term varies by insurer and plan. The standard is 24 months, and individual insurers offer plans with a shorter minimum term of 12 months. Very rare exceptions with longer periods of 36 months exist, but they are not the rule.

The exact minimum term is stated in the terms and conditions of the insurance, not always in the overview of the offer. If you want to know before signing how long you are bound, you should look up this point explicitly in the terms and conditions or clarify it in an advice session.

Under § 205 VVG, ordinary termination is possible after the minimum contract term has ended. The typical notice period is three months to the end of an insurance year or calendar year. The insurance year usually begins with the month in which the contract starts and ends after twelve months each time.

The termination must be in writing. If you want to cancel, you also need proof of follow-on insurance, otherwise the insurer does not accept the termination. The right of withdrawal in the first 14 days is a different instrument.

§ 205 (4) VVG gives insured people the right to extraordinary termination if the insurer raises the premiums. The deadline is two months from the notice of the adjustment. The termination takes effect on the date of the adjustment, not on a later date.

The special right of termination applies regardless of the minimum contract term. If you only concluded a contract six months ago and now receive a premium increase, you can still use this right.

Important: the special right of termination applies to an increase by the insurer. It does not apply to a premium increase that results from your own changes to benefits or from a plan change.

Besides the special termination after a premium increase, there are other situations in which extraordinary termination is possible without regard to the minimum contract term. The main case is the start of compulsory insurance in statutory health insurance. If an employee's income falls below the Jahresarbeitsentgeltgrenze (i)JAEG · JahresarbeitsentgeltgrenzeThe annual income threshold in Germany. Employees who earn more than this per year may leave statutory health insurance and switch to private health insurance.More about JAEG → or a job subject to compulsory insurance begins, statutory compulsory insurance applies automatically. In this case, extraordinary termination is possible as of the start of compulsory insurance.

Several scenarios show how this works in practice:

• Contract from June 1, 2024: ordinary termination is possible at the earliest as of May 31, 2026, with a notice deadline of February 28, 2026.
• Premium adjustment as of July 1, 2025: special termination under § 205 (4) VVG is possible until August 31, 2025, effective as of July 1, 2025.
• Job change with an income below the JAEG from March 1, 2026: extraordinary termination as of March 1, 2026 is possible, regardless of the minimum contract term.

Some points deserve special attention:

• Date the contract is concluded: it affects exactly when ordinary termination is possible. If you plan to return to statutory health insurance in two to three years, you should choose the contract date with care.
• Check premium notices immediately: in our advice work we often see that the special termination after a premium adjustment is overlooked, because it only leaves two months from the notice. We recommend that you check premium notices immediately and get advice if in doubt.