News Higher costs with fewer benefits: Criticism for long-term care insurance

News Higher costs with fewer benefits: Criticism for long-term care insurance

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Thursday, 03.08.17 , written by Annabell Meyer Thanks to the Second Welfare Act, many people in need of care have benefited from better benefits since the beginning of the year. For some people with a private long-term care insurance, the change in care, however, brings disadvantages. According to the consumer center Baden-Württemberg, many providers demand higher contributions and at the same time offer fewer services. >  For insureds, the changes in care not only benefits

  • The second stage of the nursing reform provides for changes in the statutory long-term care insurance and supplementary long-term care insurance.

  • Since the beginning of the year, many insurers have increased their contributions and thereby cut benefits, criticize consumer advocates.
  • A provider change should indeed be considered. But with an individual comparison of the offers you can save money.

Long-term care has been redefined since the beginning of the year with the second Nursing Welfare Act. This means that many people in need of care often have better benefits. Others are entitled to care benefits for the first time. However, the more comprehensive need for long-term care with its five levels of care instead of the three levels of care forces private nursing insurers to act . They have to adapt their services to the new care system.

According to the consumer center Baden-Württemberg this does not happen only in the sense of the insured. Consumer advocates criticize procontra that many vendors have increased their contributions since the changes came into effect and often even cut benefits by as much as 30 to 60 percent . The Association of Private Health Insurance Association (PKV-Verband) justifies the action of insurers with the overall higher benefits for people in need of care, which lead to overspending.

Aging choice for insured: Less benefits or higher contributions

According to the private health insurance association, insurers would have two options to compensate for the rising costs of switching to the care system: premium increases or benefit reductions. Many companies are deciding to cut benefits first in order to minimize the premium adjustment . Because some customers would rather accept restrictions on the services than higher costs, according to the private health insurance association. The Stiftung Warentest advises, however, to calculate exactly whether, despite the lower payments, there is still enough money left over for the care.

If you do not want to risk a funding gap in the case of long-term care, you should take care to increase the reduced benefits again. The consumer center of Baden-Württemberg therefore demands that insurers inform their customers about this possibility and that their benefits be brought back to their current level – without renewed health checks. Whether the criticism of consumer advocates in the insurers heard, remains to be seen.

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Health status is crucial when changing nursing care insurance

Admittedly, people with supplementary long-term care insurance generally receive a special right of termination when the contributions and benefits are adjusted. A provider change, however, is not always the best option for several reasons. For example, a new health check is waiting for the new provider. This is a major disadvantage, especially for people who have been insured for some time and who have had health problems since the beginning of the hedge. Because both with increasing age as well as by possible illnesses increase the contributions.

In the worst case, the new provider even rejects those who are interested if their health status is too risky in his estimation. Therefore, before insureds cancel their old tariff, they should have a firm commitment to another supplementary long-term care insurance so that they do not suffer an insurance gap.

Stiftung Warentest advises to change tariffs instead of termination

If the old nursing supplement tariff is terminated, the contributions already paid will be lost . Likewise, the accrued pension provisions are usually not transferred. Thus insured persons have to start from the beginning with a new tariff, to build up a cushion, so that their contributions remain moderate even in old age or with higher power requirements.

Instead of a termination, the Stiftung Warentest advises to negotiate with the current insurer if he increases the contributions or cuts benefits. At best, a different rate may be chosen within the company that is cheaper or more comprehensive. In this case, the retirement provisions are retained.

What should be interested in private nursing care insurance?

Canceling the existing private long-term care insurance is recommended, if at all, for people who have recently been insured and therefore have not spent too much on it. Just like people who do not have any supplementary care insurance, they should not look for cheap contributions when looking for a new tariff. Because these are useless, if the benefits in case of nursing are not sufficient.

Above all, it is important that the insurance provides sufficient insurance at all levels . For example, some providers offer very good services with the highest care requirements. In the lower levels of nursing, on the other hand, there is a risk of underinsurance. Therefore, it is advisable to compare different offers. The comparison calculator for long-term care insurance helps to find a tariff with the best price-performance ratio.

  • Here you will find tips and more information on private nursing care insurance. >
  • Annabell Meyer
  • editorial staff

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Heidelberg. German civil servants conclude a private installment loan much more frequently than other employees. This is the result of a recent evaluation by tariff experts from Verivox. 7.8 percent of all loans given by Verivox go to civil servants. Thus, the share of civil servants among borrowers is more than twice as high as their share of total working population.

bilder 115247 article 

Do not be afraid to borrow

But not only do civil servants use a loan above average often. In addition, public servants sometimes differ significantly from other borrowers. For example, they apply for significantly higher loans – on average 15,861 euros. This is 29 percent more than for other credit seekers. Every fifth civil servant wants to buy a car or a motorcycle with the money.

57 percent of all civil servants applying for a loan already have at least one other loan. Among the remaining borrowers, it is only 43 percent. “Officials have a particularly secure income,” says Oliver Maier, Managing Director of Verivox Finanzvergleich GmbH. “You can calculate exactly and you do not have to worry about not being able to repay the loan installments.”

Banks prefer officials

Banks also appreciate this predictability: In more than 90 percent of the cases, civil servants receive an offer on their loan request. The high proportion of civil servants among borrowers is also due to this high commitment rate.

On the other hand, their interest rate brings little advantage in terms of the interest rate. On average, public servants have to pay 6.6 percent less interest than other borrowers for their loans.

“Thus, the influence of civil servant status on interest rates is relatively low,” says Oliver Maier. “With a comparison of providers, borrowers save on average over 35 percent – regardless of their employment. In comparison, the interest rate advantage of civil servants hardly matters. “

methodology

The analysis included all loans that were closed within one year via Verivox. Mortgage lending was not included.

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The Public Treasury places the maximum expected debt and manages to reduce interest

The Public Treasury places the maximum expected debt and manages to reduce interest

Tesoro Público

The Treasury has held a new auction. FNMT / BANCO DE ESPAÑA

After a week of calm in which the risk premium, which measures the confidence of the market in Spanish sovereign debt, has fallen significantly, Spain has managed to come out with a fresh review of the markets.

Thus, the Public Treasury has achieved its maximum objective and has captured 4,514 million euros in the Auction of Letters to 12 and 18 months held this Tuesday that, in addition, has been settled with marginal interests of 3.20% and 3, 45%, lower than in the previous bid of these denominations.

According to market data, investors have acquired a total of 3,532 million euros in 12-month bills, for which they will charge an interest of 3.20%, lower than the 3.99% recorded in the previous auction, which took place on July 17. Also, the Treasury has placed another 981.6 million euros in Letters to 18 months, with an interest of 3.45%, significantly lower than 4.35% of the aforementioned auction.

Expectations, in the ECB

Since last week, Spanish sovereign debt yields have plummeted due to expectations that the European Central Bank (ECB) will intervene to calm the market, even if Spain has to ask for a ransom.

For example, the yield on the 10-year Spanish bond (the yield offered to investors to buy Spanish debt at 10 years) has dropped to 6.2%, after reaching 7.165% at the beginning of August (still below of the maximum of 7.62% from July 24). In the case of the two-year bond, where operations are focusing more, profitability has fallen to 3.58%, after having reached above 6% at the end of July.

Spain, before a rescue?

After remaining more than a month and a half above 500 basis points and even going so far as to shoot up to around 650, the Spanish resigo premium, the extra cost that investors demand to buy sovereign debt, took a little respite last Thursday, for the proximity of the aid to the bank that the European Union will lend to Spain.

Until we know what decision the ECB takes, we will not take any “ This relaxation in the pressure exerted by investors on our debt is due in large part to the fact that the Government, which takes up its agenda this week after the holidays, has He was willing to ask for help from the Eurogroup, beyond the rescue of the banking already agreed, in exchange for an intervention by the ECB , although it would require new conditions that Spain would have to comply with and which could, according to the analysts, new adjustments.

The ECB announced on 3 August that it was willing to act, but as long as the governments of those countries first asked for help from the rest of the Eurogroup, which could in turn set conditions for that aid . Last week, after dispatching with the king at the Palace of Marivent, in Palma de Mallorca, Rajoy, who a month ago was reluctant, was willing to do so. In June a ransom was requested for the Spanish bank, he said then, adding: “If it seems reasonable, now we will do the same”.

However, the president wants to wait for the European Central Bank to clarify what he is willing to do. “Until we know what decision the ECB takes, we will not take any,” he insisted a week ago from Marivent. For his part, the Economy Minister, Luis de Guindos, said this weekend that the intervention of the European Central Bank (ECB) in the markets to alleviate the pressures on the Spanish debt must be forceful and not have a fixed limit in advance. neither of amount nor duration.

Germany cools expectations

However, the German Central Bank, the Bundesbank, threw a jug of cold water at the markets on Monday and cooled expectations by being very critical of the possibility that the European Central Bank (ECB) makes selective purchases of sovereign bonds. As an argument, he wields “the considerable risks” for the stability that would represent, in his opinion, the intervention in the debt markets by the issuing institute of the euro zone, as pointed out by the president of the entity, Mario Draghi, in his opinion. last press conference.

The consequences of the German criticism did not wait, and the Spanish risk premium slowed down its fall, so that despite reaching the 459 basic points, finally closed the day on Monday at 477. Although that is 17 points less that the 494 of the previous session, are much less than they would have been if there had been no criticism of the Bundesbank. However, this Tuesday continues to fall and at 11.35 it is at 469 points.

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Chechnya: Yeltsin ready for dialogue. Russian President agrees to meet with the Chechen leader to Moscow.

Moscow, correspondence

Yeltsin agreed yesterday for the first time since the beginning of the war in Chechnya, direct talks with the leader of the Chechen separatist Zelimkhan Iandarbaïev in Moscow. The latter would have been “confirmed” agreed to this meeting. It said the Kremlin not to attempt to resolve the conflict could revive talks stalled since last fall. And also a good point for the head of the Russian state, candidate for his own succession to the presidential election on June 16

The two parties should meet “in the coming days” in Moscow, said Tim Guldimann, the head of the mission of the Organization for Security and Co-operation in Europe (OSCE) in the Chechen capital, which served mediator to reach this agreement. But “the exact date is not announced for security reasons,” he added. Yeltsin, however, suggested that the Moscow meeting would precede his own movement in Chechnya. The statement of the OSCE representation reported a “prémliminaire agreement on the need to resume negotiations on the basis of the agreement for the peaceful settlement of the situation in the Republic.” Signed on July 30, following lengthy negotiations between Russians and Chechens, the text on military and not political issues had allowed relative peace by establishing a ceasefire. It also provided for a gradual withdrawal of Russian troops and the disarmament of combatants, both measures remained unfulfilled. At the time the two parties negotiating thanks to the use of their representatives had failed to reach an agreement on the status of the Republic, the separatists demanding full sovereignty that Moscow denies. The war had then taken in the fall, ending any dialogue.

So far, the Russian president had refused direct talks demanded by the separatist leader Dzhokhar Dudayev, killed April 21 by a Russian rocket. And the coming to power of Zelimkhan Iandarbaïev, his successor at the irreducible independence reputation, left little hope for bending the Kremlin leader to refuse to talk to “bandits”. But with the approach of the first round of elections, Boris Yeltsin declared himself ready to meet “some officials separatists”.

As the Kremlin opts for conciliation, Russian troops announce overcoming the resistance of Bamut. For several days, helicopters succeed in pulling their rockets on the village became a symbol of the Chechen resistance. General Troshev, commander of the 58th army besieging the town for four days, announced yesterday that his troops were captured after taking strategic hills around. In seventeen months of the war, Bamut, though emptied of its inhabitants and reduced to ruins had never been taken by Russian forces. Yesterday, the separatists had planned to “leave the village” if it became too difficult to defend.

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