There are situations where it may become necessary or advisable to temporarily discontinue private health insurance (PKV). If it is foreseeable that this will only be temporary and the private health insurance will be resumed later, it is often recommended to take out a "Anwartschaftsversicherung" (dormancy insurance). This ensures that the current insurance conditions are essentially "preserved" and can be resumed under the same terms at a later date. The following explains what to consider when opting for an Anwartschaftsversicherung.
What happens after canceling and resuming private health insurance?
Generally, it is not an issue to terminate private health insurance and later resume it, as long as the necessary conditions are met. The contract simply needs to be canceled, and upon reapplying, a new contract must be signed. This could be either the original or a different plan. However, insurers typically treat this as if private health insurance were being taken out for the first time, which usually comes with several disadvantages:
- Increased premiums due to age: The premiums will always be higher due to the higher entry age compared to the original policy. Any age-related reserves that were accumulated during the original policy are lost after cancellation. Starting a new contract without these reserves can have a negative impact on the premium and its future development.
- Health examination: When reapplying, a new health check will be required. If there have been any health issues or additional risks during the interim period, they will be factored into the premium through risk surcharges or exclusions of benefits. In some cases, the application could be rejected entirely.
- Waiting periods: New contracts also come with waiting periods, during which coverage is not available.
The concept of the Anwartschaftsversicherung
An Anwartschaftsversicherung (dormancy insurance) helps avoid these disadvantages. It grants the right to take up insurance under the same terms that apply today or that would apply if the policy were signed today. This is akin to having an option: you can exercise it (i.e., sign an insurance contract under guaranteed terms), but you don't have to.
The only actual benefit of the Anwartschaftsversicherung is this right. It does not provide any further benefits, particularly not health insurance coverage. For that, a separate health insurance contract is always required.
Different types of Anwartschaftsversicherung
There are two main types of Anwartschaftsversicherung: the "small" Anwartschaft and the "large" Anwartschaft. In some situations, it is also possible to suspend the private health insurance contract entirely.
"Small" Anwartschaftsversicherung
The small Anwartschaft simply provides the right to later resume the original plan without requiring a new health examination or imposing waiting periods. There are no risk surcharges or exclusions of benefits due to newly developed health conditions or risks. Additionally, an application cannot be rejected.
However, the small Anwartschaft does not grant any further rights. No age-related reserves are accumulated during this period. When the insurance is resumed, the premium will be based on the age at the time of resuming coverage, meaning it will always be higher than the original premium. On the plus side, the small Anwartschaft is inexpensive.
"Large" Anwartschaftsversicherung
The large Anwartschaft offers the same rights as the small one but includes the added benefit of using the original entry age when calculating the premium upon resuming coverage. The insured is essentially treated as though they never left the original plan. This helps to keep premiums lower in the future. However, because the large Anwartschaft also requires the accumulation of age-related reserves based on the original entry age, it comes with significantly higher premiums, which can be up to 25% of the full health insurance premium.
Suspended Contract
In certain situations, such as unemployment or if a policyholder is assigned to the emergency tariff due to premium arrears, it may be possible to suspend the private health insurance contract. The contract does not automatically end but becomes dormant and can be reactivated when the suspension reason no longer applies. Coverage can then resume under the originally agreed terms. However, no benefits can be claimed while the contract is suspended.
When is Anwartschaftsversicherung worthwhile?
An Anwartschaftsversicherung is worth considering whenever a private health insurance contract is canceled due to switching to another insurance system, and there is a good chance that private insurance will be resumed later.
The large Anwartschaft makes sense when there is a very high probability of returning to private health insurance. Otherwise, the higher premiums may be seen as wasted money.
The small Anwartschaft is more suitable for shorter breaks from private health insurance, where the slight increase in age at re-entry will not significantly impact premiums. For longer periods away from private insurance, it is worth weighing whether the small or large Anwartschaft is the better option.
Common groups for Anwartschaftsversicherung
There are two main groups who frequently benefit from Anwartschaftsversicherung:
- People with long stays abroad who have international health coverage during that time: if it is clear that after their stay abroad they will return to private health insurance (and are not subject to compulsory public insurance).
- Civil servants with access to healthcare provided by their employer, such as police officers or, in some cases, correctional officers and firefighters (depending on the state regulations). These individuals do not need health insurance while they are actively employed, but they will need it once they retire. The Anwartschaftsversicherung helps ensure they can secure favorable terms for private insurance when they retire.
Other situations where Anwartschaft may be relevant
- Unemployment: In some cases, private insurers may require an Anwartschaft instead of allowing the contract to be suspended.
- Employees with incomes below the compulsory insurance threshold: Such employees can later return to private health insurance on their original terms with an Anwartschaft, once their income surpasses the threshold again. However, in many cases, it is also possible to maintain private health insurance by opting out of public insurance, making the Anwartschaft unnecessary.
- Former freelancers and self-employed individuals who switch to employment subject to compulsory insurance may use Anwartschaft to retain favorable terms for possible later return to private insurance, though this is rare.
- Students: Students who were privately insured before their studies and switch to public insurance can use Anwartschaft to secure favorable terms for potential later private coverage. However, they also have the option to remain privately insured during their studies.
Consideration of the insurance plan
Whether Anwartschaftsversicherung is worthwhile also depends on the price and benefits of the original or target plan. Therefore, the decision should not be made without evaluating the plan in question. A comparison of insurance options can help identify market alternatives that might be more favorable in terms of price and benefits.