FAQ’s by Expats: What does "freiwillig versichert" mean?
I have recently changed jobs or received a salary raise. Now, I have received a letter from my insurance provider, and it mentions something about being "freiwillig versichert." I'm not quite sure what this term implies.
Our answer:
In Germany, there are two primary types of insurance: statutory and private.
If your income exceeds a certain threshold (which, in 2023, is 59,850.00 Euros), you have the option to enroll in private insurance. This income threshold is referred to as the "Beitragsbemessungsgrenze," and its specific level is determined annually. Generally, the more you earn, the higher your health insurance premiums, as they are calculated as a percentage of your income. However, once your income surpasses the Beitragsbemessungsgrenze, there is a maximum cap on the health insurance payments.
When your income exceeds the Beitragsbemessungsgrenze, you can choose to remain with your current statutory insurance provider or switch to private insurance.
Should I go private?
There are various advantages and disadvantages to consider when contemplating private insurance. If you have been dissatisfied with the quality of care or waiting times for medical appointments, private insurance might be a sensible option. In general, we believe that private insurance is a good choice for individuals who are young, healthy, and do not plan to spend their retirement years in Germany. This is because private insurance premiums are influenced by your health condition. If you are young and healthy, you are likely to pay less for superior services, but as you age, you should be prepared for increased premiums with statutory insurance.
Furthermore, switching back from private insurance to statutory insurance can be challenging, so it's advisable to carefully consider your options, especially if you plan to stay in Germany for an extended period.
If you are content with your current statutory insurance, you do not need to take any action in response to the letter regarding "freiwillig versichert." However, if you are contemplating a switch to private insurance, we recommend referring to our more detailed article on German health insurance.
Alternatively, you can request a private consultation with our dedicated health advisor from Allianz.
Christine is a co-founder of Jetztpat. She was raised in the so-called Schwabenländle but fell in love with travelling to random places very early in life. After living in Japan and Taiwan for several years, she finally went back home to stay in the German beer capital (where she survives by drinking wine). If she is not watching her favorite Japanese Netflix show aggretsuko, you can find her Googling answers to the real questions in life.