The daily sickness allowance replaces the lost wages due to inability to work due to an accident, sickness, or pregnancy. Many employees are already sufficiently covered by insurance through the company. Workers who do not belong to such a group insurance, including the self-employed and stay-at-home mothers can take out a premium for a voluntary loss of income insurance:
The Health Insurance Act (KVG) provides the legal basis for the daily sickness benefits for this loss of income insurance. Under the KVG, the candidate wishing to be insured must be accepted by the health insurance, however, as a prerequisite for acceptance, the candidate must answer a series of health-related questions. It is possible for the insurer to attach reservations to the health insurance for existing conditions, but the reservations may not last longer than five years. It is possible to obtain a collective policy for this type of insurance.
There are several other notable features of the sick pay insurance under the KVG. First, men and women pay the same premiums. Second, the inability to work due to maternity is covered with up to 270 days before giving birth. Some health insurance companies offer the loss of income insurance, required under the KVG, but only offer an insufficient amount of the maximum daily allowance.
The Federal Law on Insurance Contracts (VVG) provides a legal basis for the daily sickness benefits of this loss of income insurance. Under this law, health insurance companies can reject the inclusion of a prospective customer on the basis of freedom of contract. Furthermore, it is permitted to base the cost of premiums on a person’s age, gender, health status, or other criteria. The inability to work due motherhood is often insurable only at an additional premium. For housewives , this (SG) insurance is not recommended, as the offered plans are often inadequate, because some health insurance companies require a proof of loss of earnings.