Pflegepflichtversicherung (PPV)

What the PPV is for

The Pflegepflichtversicherung (PPV) is the compulsory private long-term care insurance that accompanies every PKV full-cover contract. The legal basis is § 110 SGB XI combined with the insurer's specific PPV terms. You cannot have PKV full cover without a PPV; you cannot have a PPV without a PKV full cover.

It exists to guarantee that PKV members have long-term care protection equivalent to statutory Pflegeversicherung members. Germany's care-insurance system is mandatory for every resident, the PPV is the private-sector fulfillment of that mandate.

Benefits: identical in structure, funded differently

The PPV's payouts must mirror the statutory Pflegeversicherung by law. The same five Pflegegrade apply, the same benefit categories (Pflegegeld (home-care cash allowance), Pflegesachleistung, Tagespflege (day care), Kurzzeitpflege, stationäre Pflege, Entlastungsbetrag). The monthly amounts match the statutory scale as defined in SGB XI, including legislated updates like the 2023 PUEG increase.

The difference sits on the funding side:

• Statutory Pflegeversicherung: pay-as-you-go, contributions rate-based on income (3.6 % with children, 4.2 % childless ab 23, at BBG for high earners)

• PPV: risk-based, calculated like a PKV tariff, premium depends on age at entry, lifetime reserve, individual underwriting

For a young, healthy new entrant, the PPV premium is usually lower than the statutory 3.6 %-of-income alternative. For older entrants it can be higher. The comparison is individual.

The premium, and how it interacts with the PKV

A PPV premium is calculated at entry age and builds its own ageing provision. Over a working life, the PPV premium rises more slowly than a pure pay-as-you-go contribution because of the reserve mechanism. At retirement, the PPV premium does not disappear but typically drops alongside the PKV as the § 12a VAG reserve reduces the overall cost.

Typical orders of magnitude (market observation):

• Young entrant (age 25-30) in a regular tariff: PPV premium around €30-50 per month

• Mid-age entry (40s): PPV premium around €50-100 per month

• Older entry (50s+): PPV premium higher, reflecting compressed reserve accumulation

Premium cap: the Basistarif rule

For PKV members in the Basistarif, the PPV premium is capped at the maximum statutory Pflegeversicherung contribution, in 2026 around €209 per month with children, €244 per month for childless members (see the Beitragsbemessungsgrenze entry for the math). This cap does not apply to PPV in regular PKV tariffs.

Employer subsidy

Employees receive an employer subsidy toward their PPV premium under the same rules as for the PKV (§ 257 SGB V + § 61 SGB XI):

• Half of the actual PPV premium

• Capped at half of the statutory maximum (€104.63/month in 2026)

The PPV and PKV subsidies share a combined cap of €613.22/month. For most employees the full subsidy is paid, but very high PKV + PPV combined premiums can exhaust the cap.

Transfer value on switching insurers

Like the PKV's ageing provision, the PPV's reserve includes a transfer value when you switch insurers, typically around €2,700-€4,000 for full care cover (practice figures; exact value depends on age and time insured). Anything beyond the Basistarif-equivalent scope stays with the original insurer.

Common misconceptions

• "The PPV is a separate product I can skip": no, it is mandatory for every PKV member

• "I already pay Pflege via my employer, so the PPV is double": no, employees in the GKV pay statutory Pflege via payroll; PKV employees pay PPV as a separate line item, with its own employer subsidy

• "The PPV gives me premium care services": no, the benefits are identical to statutory by law, not enhanced. A Pflegezusatzversicherung is the separate product for additional care cover