Krankentagegeld: Why It's Essential in Private Health Insurance
If you have private health insurance (PKV) in Germany, Krankentagegeld is one of the most important add-ons you can have. Without it, a prolonged illness could leave you with no income at all. Here's everything you need to know.
What Is Krankentagegeld?
Krankentagegeld (daily sickness allowance) is an insurance benefit that replaces your income when you cannot work due to illness or injury. It is a separate component within your private health insurance policy.
In Germany, your employer is legally required to continue paying your full salary for the first 6 weeks of sick leave (Entgeltfortzahlung). After that, you need another source of income — and this is where Krankentagegeld comes in.
The Dangerous Income Gap Without It
Weeks 1–6: Employer pays full salary
You receive your normal paycheck. No issues here.
From week 7: The gap begins
With GKV: Your Krankenkasse automatically pays Krankengeld (about 70% of gross).
With PKV and no Krankentagegeld: You receive nothing. Zero income.
With PKV + Krankentagegeld: Protected
Your private insurer pays the agreed daily rate — tax-free — for as long as you are unable to work.
GKV vs PKV: Sick Pay Comparison
This is one of the biggest differences between public and private insurance that many expats overlook.
| Feature | GKV (Public) | PKV (Private) |
|---|---|---|
| Income protection included? | Yes — Krankengeld is automatic | No — must add Krankentagegeld separately |
| Amount of sick pay | 70% of gross, max 90% of net (capped) | You choose the daily rate yourself |
| Employer sick pay (first 6 weeks) | Full salary from employer | Full salary from employer |
| After 6 weeks | Krankengeld from your Krankenkasse | Krankentagegeld from your PKV — only if insured |
| Maximum duration | Up to 78 weeks for same illness | Unlimited (until recovery or disability ruling) |
| Tax treatment | Tax-free but affects tax rate (Progressionsvorbehalt) | Tax-free, no Progressionsvorbehalt |
Who Needs Krankentagegeld Most?
Employed Expats in PKV
After the 6-week employer sick pay period, you have no safety net without Krankentagegeld. Set the waiting period (Karenzzeit) to 43 days to start immediately after employer payments end.
Freelancers & Self-Employed
You have no employer to pay you during illness — not even for the first 6 weeks. Choose a short waiting period (14 or 21 days) so coverage kicks in quickly.
High Earners
If you earn above the GKV contribution ceiling (BBG), the statutory Krankengeld would only cover a fraction of your actual income. Krankentagegeld in PKV has no such cap.
Single-Income Households
If your household depends on one income, an illness without Krankentagegeld could be financially devastating. It is your household's income safety net.
How to Choose the Right Krankentagegeld
- Calculate your daily rate: Take your net monthly income and divide by 30. This is the amount you need to cover your expenses if you cannot work. Remember that Krankentagegeld is tax-free, so you do not need to match your gross salary.
- Choose your waiting period: Employees should typically choose 43 days (to align with the end of employer-paid sick leave). Freelancers should choose 14–21 days depending on their financial reserves.
- Compare insurer tariffs: Premiums vary significantly between insurers for the same coverage. A broker can help you compare across providers and find the best value.
- Include it from day one: Adding Krankentagegeld when you first take out PKV means no additional health check. Adding it later may result in exclusions for conditions that developed in the meantime.
Common Mistakes to Avoid
Skipping Krankentagegeld to save on premiums
The savings are minimal (often 20-40 euros/month) compared to the risk of months without income.
Insuring too low a daily rate
Underinsuring means you will still face a significant income gap during illness.
Choosing too long a waiting period as a freelancer
Without employer sick pay, every day without income counts. A 42-day wait could mean 6 weeks with zero earnings.
Assuming your employer will always cover you
The 6-week employer obligation only applies per illness. Frequent or recurring conditions can exhaust this quickly.
Trying to add it after getting sick
Pre-existing conditions may be excluded or lead to premium surcharges. Always include it from the start.
Frequently Asked Questions
Krankentagegeld is a daily sickness allowance paid by your private health insurer when you are unable to work due to illness or injury for an extended period. It replaces the income you lose after your employer stops paying your salary — typically after 6 weeks of sick leave.
Yes, it is strongly recommended and in most cases essential. Unlike GKV, which includes Krankengeld (statutory sick pay) automatically, PKV does not include any income replacement by default. Without Krankentagegeld, you would have zero income after your employer's 6-week sick pay obligation ends.
You should insure roughly your net monthly income divided by 30. For example, if your net income is 3,000 euros per month, you would need about 100 euros per day. Keep in mind that Krankentagegeld payments are tax-free, so you do not need to cover the gross amount.
Most policies have a waiting period (Karenzzeit). For employees, this is typically set to start from the 43rd day of illness — right after the 6-week employer sick pay ends. Freelancers often choose shorter waiting periods (e.g., 14 or 21 days) since they have no employer-paid sick leave.
For employees, Krankentagegeld is relatively affordable — typically 20 to 60 euros per month depending on your age, daily rate, and insurer. For freelancers with shorter waiting periods, premiums are higher but still a fraction of the income loss you would face without it.
Without Krankentagegeld, you would receive no income at all from the moment you stop working. You would still need to pay your health insurance premiums, rent, and all other expenses. This can lead to serious financial hardship even after just a few weeks of illness.
Yes, most insurers allow you to add it later, but you may need to undergo a new health assessment. Any pre-existing conditions that developed since your original PKV application could lead to exclusions or surcharges. It is always better to include it from the start.
Krankentagegeld does not directly cover maternity leave in the same way as GKV Mutterschaftsgeld. However, some PKV tariffs offer maternity-related benefits. The specifics vary by insurer, so it is important to check your policy terms if you are planning a family.
Not Sure If Your PKV Includes Krankentagegeld?
A licensed broker can review your current policy, identify gaps in your sick pay coverage, and help you find the right Krankentagegeld tariff for your situation.