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Disability insurance or disability pension
If you are well under 50 years of age, there is no serious protection from the disability pension from the German pension insurance . Even if working people can't work more than three hours a day in any (not your!) job, they get just 29 percent of their last gross income as a full disability pension - and taxes and health insurance contributions are deducted from that. If you work more than three but less than six hours a day, you are entitled to half the disability pension. Ideally, this is around 15 percent of the last gross income. If you can work more or if you are “only” unable to work, you will not receive any pension from the German pension insurance.
The low level of state protection makes it clear: You are only really protected with private disability insurance: it always seems to make sense, since you can easily secure 70 to 90 percent of your last net income with the benefits of the BU .
?Disability insurance or accident insurance
For many people, accident insurance is good protection to cushion the additional costs that often arise after such an incident: For example, the conversion of the house, the vehicle, financing of additional costs in everyday life due to the disability. However, accident insurance hardly protects your workforce as your most valuable asset. And that's because just 10 percent of all occupational disabilities are caused by accidents in the first place. In the remaining 90 percent , the accident insurance does not apply to a BU if it is triggered by burnout or a herniated disc, for example.
Therefore, the following applies: accident insurance makes sense for many who want to arm themselves against the financial consequences of accidents - but for those who really want to protect themselves comprehensively against the risk of occupational disability, only occupational disability insurance makes sense for them.
A comparison of the performance characteristics of the statutory entitlements with the benefits of private occupational disability insurance shows how little protection the state system offers.
?No BU pension despite disability insurance
Anyone who is unable to work receives a pension from their disability insurance – this is the basic rule. But even when taking out disability insurance, you should pay attention to clauses that can result in the insured pension due to disability not being paid out or only being paid out with a delay. These are the stumbling blocks that can lead to no disability pension despite being unable to work:
Exclusions from benefits: Disability insurance generally stipulates that anyone who commits a crime and becomes unable to work as a result is not also rewarded with a disability pension. However, there are exceptions to this rule for traffic offenses. Some insurers pay for traffic offenses regardless of the degree of fault.
Waiting periods: Almost all insurers provide the option of agreeing waiting periods. If you are unable to work, you will only be paid after these 3 to 12 months have elapsed, meaning that you have to fulfill a waiting period. Be careful with clauses that promise a saving in contributions: 12 months can be long if you need the support of disability insurance in the event of a disability.
Temporary acknowledgments: Most insurers reserve the right to pay a disability pension for only 12 or 24 months at first. Choose an insurer that does not issue such temporary approvals so that you do not have to fight to continue paying your pension shortly after you become unable to work.
Forecast period: Top disability insurance plans today provide that you will receive your pension if your disability is expected to last six months. Make sure that your contract offers such a clause and does not pay in the event of "probably permanent" occupational disability: This means a forecast period of three years, which means: You will only receive this if you are unlikely to be able to work in your profession for three years Pension.
Frequently asked questions about disability insurance
?Who needs disability insurance
The risk of becoming unable to work is higher than many people realize. One in four employees now has to give up their job before they reach retirement age. The statutory disability protection is usually not sufficient to maintain the accustomed standard of living. In principle, the need for physically employed people is higher than for "knowledge workers". Likewise, the self- employed , freelancers and employees in private companies have a larger pension gap than employees in the public sector and civil servants. But additional protection in the form of so-called disability insurance can also be worthwhile for the latter.
?When will the benefits from the BU insurance be paid
Basically from the day on which the occupational disability occurred - this can be the beginning of a more serious illness. The insurer should be informed as soon as possible if there is a risk of disability . Because the benefit decision can take a few months, since the insurance company first has to check the medical findings, the exact impairment of the ability to perform and any pre-contractual violation of the duty to notify.
?Who is responsible for determining disability
The incapacity is determined by the insurance company. The decision is based on the reports of the attending physicians; experts who are supposed to make an assessment of the existence of an occupational disability are rarely involved.
?What influence does my state of health have on the BU contract
Possible previous illnesses of the policyholder influence the premium amount of the insured person and can lead to an application being rejected or only being accepted under more difficult insurance conditions with a premium surcharge or an exclusion for certain illnesses. Existing previous illnesses are determined by the health questions for the forecast period in the application; depending on the amount of the pension, a medical examination may also be necessary. The health questions should always be answered truthfully, otherwise the insurer can refuse the BU pension in the event of a claim due to the violation of pre-contractual disclosure obligations.
?What happens if I have already been rejected for a BU
Who once a BU applicationwho, for example, would have been rejected due to previous illnesses or would have been accepted only with difficulties, must always state this fact in a further application! This increases the risk of being rejected by other providers and ultimately not receiving any disability insurance at all. It is therefore better not to apply for the desired occupational disability protection directly, but to make a preliminary risk inquiry or an Invitatio application: This asks the insurer to check the insurability of a customer and then to prepare an offer themselves. As a customer, you can accept this or reject it. Your advantage: An offer that is not accepted is not a rejected application and does not have to be specified for further applications. But also be careful if the insurers save the request data in the risk file HIS - participating insurers can then access your data. But fewer and fewer insurers are doing this! Anyone who still does not receive a contract or is dissatisfied with the insurance conditions can use alternatives such as these Check disability insurance , basic ability insurance, or dread disease insurance
?How long should I set the BU term
The insurance period, i.e. the period in which the risk of occupational disability is insured and the benefit period (time period in which the insurance company pays out the maximum BU pension), should be chosen up to the statutory retirement age, i.e. the age of 67, if possible. However, depending on the risk profile of the applicant, this is not always possible. People in risky professions often only receive contracts with insurance periods up to the age of 55 or 60. It is therefore worth making an intensive comparison of the products and their insurance conditions on the market.
?What does the so-called post-insurance guarantee mean
With the supplementary insurance guarantee (dynamic), working people can flexibly adjust the benefits of their policy
?What do I have to consider when changing jobs for disability insurance
The insurance usually insures the profession practiced before the onset of the occupational disability. Subsequent career changes therefore have no influence on the premium amount and do not have to be reported to the insurance company. Changing careers can be important if you become unable to work: Some insurers include the previously practiced occupation in the assessment of occupational disability - this may increase the risk that you will be expelled if you could still practice your original occupation.
?What is behind the term: abstract reference
The concept of "abstract reference" is a possible clause in the insurance contract. In this case, insurers refer to an equivalent job that the insured person could theoretically carry out despite illness and accordingly pay no BU pension. Whether the insured person can actually do the job and get a job is irrelevant. You should therefore choose an insurance company that does not have such a clause in the contract. In most societies, however, the abstract reference is no longer an issue. But even if this clause is not an issue during the initial review of the application, it can very well be an issue if you leave the job temporarily - for example due to parental leave: When examining disability, some insurers only refer to the profession practiced before leaving for three to five years and actually provide for an abstract referral after the period has expired. Younger people in particular – especially women who want to have children – should pay attention to this clause.
What happens if there is no occupational disability by the end of the term?
Disability insurance is basically a risk insurance that does not accrue any credit after the end of the insurance period. The situation is different with so-called invest policies, where the surpluses are not used to reduce the premiums directly, but where the surpluses are invested – mostly in funds. With these contracts, there is a credit balance at the end of the contract period, but the contributions are correspondingly higher.
?What does the so-called deferral of contributions in the BU contract mean
The deferral of contributions refers to the customer's right to have his contributions deferred interest-free upon request, as long as the insurer clarifies whether the condition is recognized as an occupational disability or not. In view of the fact that the insurer's decision can take several months and the allegedly disabled person has no income, this Mö