Consumer advocates and financial experts in Germany consider occupational disability insurance (Berufsunfähigkeitsversicherung, BU) one of the most important policies of all, right after health and personal liability insurance.

Why state support is not enough

The state reduced earning capacity pension (Erwerbsminderungsrente) pays the full amount only if you cannot work in any job for more than three hours a day, and even then it is often small. If a programmer loses her sight or an architect has a stroke, the state will point them towards other, simpler work.

How occupational disability is defined in a private policy

A BU policy pays an agreed monthly pension (for example €2,500 until retirement age) if, for health reasons, you are expected to be unable to carry out at least 50% of your current occupation for at least six months.

Why the health questionnaire is critical

When you take out the policy, the insurer asks detailed questions about your health over the last five to ten years. Concealing diagnoses, psychotherapy or back pain gives the insurer the right to withdraw from the contract without paying, even years later.

Waiver of abstract referral (Verzicht auf abstrakte Verweisung)

A key clause in a reliable BU policy is the waiver of abstract referral. It means the insurer cannot refuse to pay on the grounds that you could theoretically do another, simpler job.

What to check

  • Ask your health insurance fund for a list of your diagnoses before filling in the health questionnaire.
  • Take out the policy while you are young and have no serious chronic conditions to lock in a low premium.
  • Make sure the policy includes the waiver of abstract referral.
  • Set the monthly benefit at no less than 70 to 80% of your net income.

Example situation

An architect whose eyesight deteriorates so much that he can no longer draw plans receives a monthly BU benefit of €2,200 from his insurer until the age of 67.

Next step

A BU policy protects your most important asset – your ability to earn money; take it out while you are young and healthy.

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.