How to Take Out a Private Health Insurance Policy

The insurance industry usually offers private health insurance through brokers and insurance agents. Legislators have therefore defined standards that must be met in the advice given before a contract can be entered into.

How do I find the best private health insurance for me?
When looking for suitable private health insurance, you should contact an independent broker representing several insurance companies. Brokers can pick out the most favorable offer from the entire market. Choosing a broker you trust is important.

What are the steps of good consultation?

• Firstly, the advisor should find out about your situation and wishes. They will explain the difference between statutory and private health insurance, and clarify whether private health insurance makes sense for you.
• Further, the important benefits will be explained. They will look at which benefit level suits you: Basic, Comfort, or Premium.
• The broker will then prepare a market overview for you, including the health insurance plans (called tariffs in Germany) of several companies. They will explain the advantages and disadvantages, and make a recommendation. You can then decide which company you want to take out a policy with.
•  Lastly, the advisor will fill out the application with you and go through the health questions with you. They will make you aware of the importance of answering these questions correctly.

In-person consultation, or do you prefer e-mail, telephone, or a video conference? You decide. The important thing is that the elements mentioned here are explained and discussed.

Consultation and minutes of the consultation
The consultation and the minutes of the consultation should contain these elements:

• The agent explains to you the difference between statutory and private health insurance. They check whether you are eligible for private health insurance.
• They will then clarify whether taking out private health insurance makes long-term economic sense for you.
• They discuss premiums, benefits, and the billing process of private health insurance with you.
• Together, you will identify benefits that are particularly important to you and determine the desired benefit level. The agent will draw your attention to any gaps in the coverage.
• The agent prepares a market analysis for you with suitable tariffs from various companies and recommends a tariff.
• You then select a tariff from one of the companies. The minutes of the consultation will show whether your choice corresponds to the agent’s recommendation. The minutes will also state the reasons for the choice.
• The agent discusses with you in detail the consequences of providing false information when answering the health questions (breach of duty of disclosure).
• The agent explains the importance of the choice of the insurance company and the consequences of changing insurance companies.
• You declare that you only wanted advice on taking out private health insurance. You explicitly exclude a comprehensive insurance analysis and offers of other insurance.
• After filling out the application, you will read the application again carefully. You confirm that you have understood the meaning of the individual points and wish to enter into the contract.

Answering the health questions correctly, do not conceal anything
Before a private health insurance company enters into a contract, it will obtain precise information about the applicant's health. When applying, the applicant must therefore answer questions about their state of health. One should always be honest when answering these health questions and not conceal anything. A medical examination is often required before a contract is signed.

Private insurance providers are not obligated to check the truthfulness of information regarding your state of health when you apply for insurance. Even a medical examination does not release the applicant from his obligation to answer all questions truthfully.

Insurance providers often only verify health information when a costly claim has been made. They will then trace the medical history of the affected person as far back as they can. If they discover concealed pre-existing conditions, benefits will be denied, right when the insured person is seriously ill. Under certain circumstances, the contract can be terminated and the person will lose insurance coverage altogether.