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Insurance for Freelancers

Self-employed individuals pay all insurance contributions themselves — without an employer covering half. Only health insurance (Krankenversicherung) is mandatory; professional liability (Berufshaftpflicht) and disability insurance (Berufsunfähigkeit) are additional but often critically important.

Mandatory​

Krankenversicherung (Health)​

In Germany, health insurance is mandatory for everyone.

Options:

TypeDescription (2025)
GKV (public)14.6% + ~2.5% supplement + 3.4% care = ~20.5% of income [1]
PKV (private)Fixed amount, depends on age/health at entry [2]

GKV for Self-Employed​

  • Minimum contribution: ~€260/month at income up to €1,248.33/month (2025) [3]
  • Maximum: ~€1,100/month at income above €5,512.50/month (2025) [3]
  • Can include family (Familienversicherung) at no additional cost [4]

PKV for Self-Employed​

  • Can be cheaper at high income and good health initially [5]
  • But: returning to GKV is difficult (after age 55 — nearly impossible) [6]
  • Family not automatically included — each member pays separately [5]
The PKV Trap
  • Premiums rise with age and medical inflation (on average 3–5% per year) [7]
  • Returning to GKV after age 55 is nearly impossible [6]
  • Family not included — each child pays separately [5]
  • Risk: high premiums in retirement with reduced income [7]

Criteria for PKV: Stably high income (above the GKV mandatory insurance threshold — €73,800/year in 2025), good health, setting aside the premium difference for future cost increases [8].

Künstlersozialkasse (KSK)​

For creative professions (artists, writers, musicians, journalists) [9]:

  • Pay only half of contributions to health and pension insurance
  • The other half is paid by KSK (financed from client contributions and federal budget)
  • Savings: ~€2,400–6,000/year depending on income [9]

Additional​

Berufshaftpflicht (Professional Liability)​

Covers damage caused to clients by your work (errors in consulting, missed deadlines, project defects) [10].

Important for:

  • IT consultants, developers
  • Designers, architects
  • Any consulting services for businesses

Cost: €150–500/year depending on profession and coverage amount [10].

Berufsunfähigkeit (Disability Insurance)​

If you cannot work due to health — no income. BU insurance (Berufsunfähigkeitsversicherung) pays monthly pension [11].

Self-employed have no protection from an employer — in case of illness or disability, you receive neither sick pay nor disability benefits (unlike employees) [11].

Pension​

No Mandatory Contributions​

Most self-employed are not required to pay into Rentenversicherung (state pension insurance) [12].

Exceptions:

  • Some professions (teachers, artists via KSK, craftsmen with Handwerkskammer) [12]
  • First 3 years of self-employment can pay voluntarily at reduced rates [13]

Savings Options​

OptionDescription
Rürup-RenteTax deductions (up to 100% of contributions from 2025), but no flexibility [14]
Depot + ETFFull flexibility, but no tax deductions [15]
Voluntary GRV contributionsGuaranteed pension, tax deductions [13]
Real estateLong-term investments, but low liquidity [15]

Priorities​

  1. Krankenversicherung — mandatory
  2. Privathaftpflicht — cheap and important
  3. Berufshaftpflicht — if working with clients
  4. Berufsunfähigkeit — income protection
  5. Pension — start saving early
Pension Planning

Without an employer paying contributions for you, financial advisors recommend allocating 15–25% of income to long-term savings (the later you start, the higher the percentage) [16].

Sources​

  1. GKV-Spitzenverband — Contribution rates and assessment limits 2025, https://www.gkv-spitzenverband.de/service/versicherten_service/beitraege_und_tarife/beitraege_und_tarife.jsp
  2. Verband der Privaten Krankenversicherung — PKV for self-employed, https://www.pkv.de/themen/krankenversicherung/selbststaendige/
  3. Techniker Krankenkasse — Contributions for self-employed 2025, https://www.tk.de/techniker/leistungen-und-mitgliedschaft/informationen-versicherte/veraenderung-berufliche-situation/selbststaendig/beitrag-selbststaendige-2008628
  4. Bundesministerium für Gesundheit — Family insurance, https://www.bundesgesundheitsministerium.de/service/begriffe-von-a-z/f/familienversicherung
  5. PKV Verband — Private health insurance: What you need to know, https://www.pkv.de/wissen/
  6. Bundesregierung — Switching from PKV to GKV: Requirements, https://www.bundesregierung.de/breg-de/themen/tipps-fuer-verbraucher/wechsel-pkv-gkv-2070650
  7. Stiftung Warentest — Private health insurance: Premiums rise with age, Test 10/2023, https://www.test.de/Private-Krankenversicherung-5054746-0/
  8. Bundesministerium für Gesundheit — Mandatory insurance threshold 2025, https://www.bundesgesundheitsministerium.de/themen/krankenversicherung/zahlen-und-fakten-zur-krankenversicherung/mitglieder-und-versicherte
  9. Künstlersozialkasse — Information for insured, https://www.kuenstlersozialkasse.de/versicherte/versicherung-und-beitrag.html
  10. Gewerbeversicherung.de — Professional liability insurance for self-employed, https://www.gewerbeversicherung.de/versicherungen/haftpflicht/berufshaftpflichtversicherung/
  11. Verbraucherzentrale — Disability insurance: What to look for, https://www.verbraucherzentrale.de/wissen/geld-versicherungen/weitere-versicherungen/berufsunfaehigkeit-wie-sie-sich-gegen-verlust-des-einkommens-absichern-13931
  12. Deutsche Rentenversicherung — Mandatory insurance for self-employed, https://www.deutsche-rentenversicherung.de/DRV/DE/Rente/Selbststaendige/selbststaendige_node.html
  13. Deutsche Rentenversicherung — Voluntary insurance, https://www.deutsche-rentenversicherung.de/DRV/DE/Rente/Azubis-Studierende-und-Berufseinsteiger/Freiwillig-Versicherte/freiwillig_versicherte_node.html
  14. Bundesministerium der Finanzen — Rürup pension: Tax support, https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Steuerarten/Einkommensteuer/ruerup-rente.html
  15. Verbraucherzentrale — Retirement planning for self-employed, https://www.verbraucherzentrale.de/wissen/geld-versicherungen/altersvorsorge/altersvorsorge-fuer-selbststaendige-diese-moeglichkeiten-haben-sie-13886
  16. Bundesverband Deutscher Versicherungskaufleute — Retirement planning recommendations for self-employed, 2024, https://www.bdv-web.de/service/tipps-zur-altersvorsorge/