Occupational disability is one of the biggest financial risks employees in Germany face. Statistically, one in four employees becomes unable to work in their job at some point in their career. Contrary to what many assume, accidents are rarely the cause. Illnesses of the musculoskeletal system, mental health conditions and cancer are far more common. Occupational disability insurance (Berufsunfähigkeitsversicherung, BU) is one of the most important private protections, and every working person in Germany should consider it seriously. The earlier, the better.
State protection against occupational disability in Germany is unfortunately full of gaps. Anyone born on or after 2 January 1961 has no claim to a statutory occupational disability pension any more. The state reduced-earning-capacity pension (Erwerbsminderungsrente), which in theory applies if you can work less than three hours a day, is usually not enough to keep your accustomed standard of living. The gap between the state benefit and what you actually need has to be closed privately. BU insurance is the most suitable tool for that.
BU insurance pays a monthly pension if the policyholder can no longer work in the job they last held because of illness or accident. This pension is meant to replace the lost income and secure your usual standard of living. As a rule, the earlier you take out BU cover, the cheaper the premium, because health risk rises with age and pre-existing conditions can make cover harder to get or more expensive.
BU insurance is for everyone in work in Germany, and especially for the self-employed and freelancers who cannot use professional pension schemes (berufsständische Versorgungswerke), as well as for people starting out in their careers and young people in training who do not yet have a claim to substantial state benefits. For everyone, your ability to work is your most valuable asset, and it is worth protecting.
When you take out BU insurance, several points need attention: the amount of the agreed pension, the definition of occupational disability in the policy terms, the exclusion of abstract referral (abstrakte Verweisung) and the right to increase cover later without a new health check (Nachversicherungsgarantie).
We support you in choosing the right BU insurance and help you find cover that fits your life situation.
Occupational Disability Insurance Benefits
Monthly pension: Paid at a minimum of 50% occupational disability, continuous for 6 months. Covers living costs.
Premium waiver: Once occupational disability begins, premium payments stop.
Part-time protection: Full benefits if you can work under 3 hours a day, even if the degree of disability is below 50%.
Sick-leave benefit: A pension equal to the BU pension after 6 months of continuous sick leave (max. 36 months).
Immediate cancer aid (BU Premium): Immediate help for 18 months for certain cancers, with premium waiver.
Care benefit (with care option): Lifelong monthly care pension from care level (Pflegegrad) 2.
Assistance services: Medical second opinions, psychological support, social insurance advice.
Waiver of abstract referral: The insurer cannot refer you to a different occupation. You can take out cover from age 10. A term to age 67 is recommended.
