Occupational disability insurance: your financial lifesaving!

Occupational disability insurance: your financial lifesaving!

Occupational disability is a risk that many employed people underestimate. In particular, accidents or serious illnesses can lead to permanent restrictions, which have far-reaching financial consequences. Loud br.de State benefits in the event of occupational disability are often low and are not sufficient to maintain the usual standard of living. In the event of illness, employers only pay wages for up to six weeks, followed by a maximum of 78 weeks of sick pay. After that, you could end up on unemployment benefits, which leads to financial bottlenecks.

Occupational disability insurance (BU) offers important protection here. It makes monthly pension payments if you can no longer work for health reasons. Insurance expert Merten Larisch recommends taking out such a policy to secure your own net income. Completing a BU early can be particularly useful for young people, such as students or pupils. In this context, parents should think about taking out insurance for their children, as they are generally healthier and the premiums are therefore cheaper.

Important considerations when choosing a BU

The terms and conditions for BU insurance can be complex, especially when pre-existing medical conditions come into play. Therapy, allergies or back problems can be considered “insurance problems” and health checks are often essential. This makes it all the more important to accurately document all medical treatments, as insurers can check this information. In addition, the abstract referability clause should be excluded so that in the event of an insured event, you are only insured for the specific profession.

Comprehensive advice from independent insurance advisors is advisable in order to avoid disadvantages and to understand the policies. Test.de reports significant price differences between insurance companies. An example is a 30-year-old controller who could choose between annual fees of 643 euros and 3,071 euros for a monthly pension of 2,000 euros.

Insurance coverage and benefits

Disability insurance is one of the most important types of insurance for anyone who relies on an income. A representative analysis of 67 offers shows that 38 of these insurance products were rated “Very Good” by Stiftung Warentest. Within these tariffs, up to 80% of your current income offers comprehensive protection as a monthly pension. However, the benefits depend heavily on individual requirements, and the younger and healthier the insured person is at the time the contract is concluded, the cheaper the insurance can be.

Despite the importance of BU insurance, some people cannot afford adequate protection because the risk increases depending on the level of work or physical stress. However, if you want to be comprehensively covered, you should find out about alternatives such as basic disability insurance or dread disease insurance. It is important to prepare well for the application, as around 80% of applications for a BU pension are approved - however, common reasons for rejection are a lack of evidence of actual occupational disability.