What Is Krankentagegeld?
Krankentagegeld (daily sickness benefit) is an income-replacement benefit you can add to private health insurance (private Krankenversicherung, PKV). If illness or injury makes you unable to work, it pays an agreed fixed amount for each day you remain unfit, helping you cover living costs while you recover. It is distinct from your medical cover — it protects your income, not your treatment.
Who needs it most: the self-employed and freelancers, who receive no employer sick pay and no statutory sick pay. For them, Krankentagegeld is not a luxury — it is essential income protection.
How It Works for Employees vs the Self-Employed
The right design differs by employment type:
- Employees continue to receive their salary from the employer for the first six weeks of illness (Entgeltfortzahlung). Krankentagegeld therefore usually starts from day 43, replacing income once employer pay stops.
- The self-employed have no such buffer, so they often set a much earlier start — for example from day 15, day 22 or day 43 depending on how long they could self-fund.
Choosing the Daily Amount and Waiting Period
Two figures define your policy:
| Choice | How to set it |
|---|---|
| Daily benefit (Tagessatz) | Cover your actual daily net income; do not over-insure beyond it |
| Waiting period (Karenzzeit) | The earlier it starts, the higher the premium — match it to your reserves |
A longer waiting period lowers the premium, so if you have savings to bridge the first weeks, a later start cuts cost. The daily amount should reflect your genuine income need: insurers will not pay more than your lost earnings, so over-insuring simply wastes premium.
Tax Treatment
A notable advantage in Germany: Krankentagegeld from a private policy is generally tax-free, because the premiums are paid from taxed income. This means the daily benefit you receive is the amount you keep — another reason to size it to your net rather than gross income.
Krankentagegeld vs Krankenhaustagegeld
Do not confuse the two. Krankentagegeld replaces lost income while you are unfit to work, whether at home or in hospital. Krankenhaustagegeld is a separate, smaller benefit paid only for days spent as a hospital inpatient, intended to cover incidental costs (parking, phone, comforts) rather than income. Many policyholders hold both, sized very differently.
Review It Periodically
As your income grows, your Krankentagegeld should grow with it, or a long illness could leave a gap. Review the daily amount every couple of years, and whenever your earnings change significantly, to keep your income protection aligned with your real needs.
Frequently Asked Questions
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