What is it?
When comparing Private Krankenversicherung (PKV), look beyond the initial monthly premium. Ask how the tariff is structured, which benefits are included, how premium adjustments are handled and what happens to the provisions if you change tariff, insurer or country. An internal tariff change may treat the existing insurance relationship differently from a move to another insurer. The term Altersrückstellungen can therefore help explain why cancelling an established contract may have financial consequences. It does not, by itself, show whether one tariff is affordable or suitable. Your health needs, income, family arrangements and plans for retirement also matter. Written information is especially important because sales illustrations and general explanations may not describe every contractual detail.
Why it matters
This concept matters because a low starting price is only one part of the cost of PKV. Understanding Altersrückstellungen can help you ask better questions about future affordability, tariff changes and a possible move abroad. It can also prevent a common misunderstanding: these provisions are not the same as a transferable cash balance. Before changing cover, request written figures and independent advice. Do not cancel an existing policy until the replacement arrangement is confirmed and you understand the financial and benefit consequences.
Practical example: Imagine Priya, a self-employed designer, comparing two PKV tariffs. Both show a similar starting premium and both cover ordinary outpatient treatment, but their benefit limits and reserve arrangements differ. One tariff offers broader benefits with a higher contribution, while the other has tighter limits and a lower initial price. Priya asks each insurer how Altersrückstellungen are treated during an internal tariff change and what information would be available if she later moved abroad. She does not assume that the cheaper starting option will remain cheaper or that all accumulated reserves would follow her automatically. Instead, she compares the contract wording, expected budget and long-term flexibility before deciding.
Expert tip
Insurers build ageing provisions to help stabilise premiums in later life. The amount can vary depending on the tariff: good tariffs sometimes set aside more than 20%, while weaker tariffs may set aside only 10%. This is why choosing the right insurer matters. In addition, there are the statutory provisions of 10%.
Related terms
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