28.03.2025

Insurance against Professional Disability: Protect Your Income

The insurance against professional disability (BU) is your financial safety net in times of uncertainty. Imagine your career as a carefully built house of cards, and an unforeseen event threatens to make it collapse. The BU is the invisible framework that protects you from falling. In this article, we will explore the importance of BU for your financial security and provide you with valuable tips for choosing and concluding the contract. Our two chapters will guide you through the most important aspects to secure your financial future.

The role of insurance against professional disability for financial stability

A worker with a protective umbrella as a symbol of financial security.

The insurance against professional disability (BU) is an indispensable pillar for financial security, especially for people who directly depend on their income. This insurance comes into play when someone can no longer practice their profession for a long period due to an accident or illness. It ensures that financial stability is maintained despite a potential dramatic change in life circumstances.

The central function of BU insurance is the payment of a monthly pension. This is granted as soon as it is proven with a medical certificate that a person can no longer work in their profession for at least 50% due to health restrictions. This highlights the importance of timely protection through BU insurance, to maintain the usual standard of living even in times of crisis. While state disability pensions often provide only modest support, BU fills an essential gap in assistance.

The need for this insurance becomes even clearer in light of the statistic that every fourth worker becomes disabled during their professional life. Often, psychological illnesses and physical disorders play a significant role. Therefore, it is important to address this insurance in advance. Taking out the contract early can be advantageous, as insurance premiums at a young age are often lower due to reduced health risk.

An essential advantage of insurance against professional disability is its flexibility. It can be tailored to individual life circumstances, either by the possibility of adjusting the pension amount or the contractual conditions based on a change in personal situation. This not only offers security but also adaptability: an essential factor in our dynamic world.

BU insurance does not only cover physically demanding professions, such as those of craftsmen. Office employees, at risk due to stress or inactivity, as well as freelancers and self-employed individuals, who do not have state coverage, also benefit from this protection. It is also sensible for students and interns to have insurance against professional disability, as they usually do not have rights to state pensions.

Ultimately, insurance against professional disability is an appropriate strategy to ensure individual income and, consequently, the standard of living. With careful selection and timely adjustment of insurance, one can ensure adequate protection even in difficult times.

Individual Protection: Choosing the Right Insurance against Professional Disability

A worker with a protective umbrella as a symbol of financial security.

When choosing insurance against professional disability (BU), crucial questions arise: how can I ensure that the protection meets my financial needs? It is essential to have a clear understanding of the selection criteria. First, the pension payment should cover about 75% of previous net income, to ensure significant income compensation. This is particularly indispensable for singles, as they often do not have additional sources of income. Additionally, the duration of benefits is crucial: it should extend up to retirement age to avoid gaps in assistance.

Wise planning also relies on a dynamic premium structure. An annual increase of premiums of 3-5% can offset the effects of inflation and salary increases, keeping the payouts realistic in the event of a claim. The medical visit and risk assessment should not be underestimated in this process. Pre-existing conditions and lifestyle factors significantly influence premium costs.

The contractual structure highlights the true flexibility of your BU coverage. Various product options, such as combinations with investment options or attractive starting rates for young people, offer customized solutions. Incorporating a disability clause into the contract can also allow for quicker payments if prolonged incapacity is expected. For example, the insurance already pays in case of incapacity to work for four months, provided further incapacity of at least two months is anticipated.

Another essential feature is the revaluation guarantee. It allows for an increase in the insured amount following significant life events such as marriage or birth, without a new medical examination. However, care must be taken regarding any waiting periods. It is also important to avoid abstract provisions, which allow the insurer to refer to other occupations, which could complicate the recognition of professional disability.

Moreover, corporate solutions offer advantages, such as fewer health inquiries, but are often limited in terms of amount and less advantageous from a tax and legal perspective. For an informed decision, it is always advisable to rely on professional advice, accompanied by online tools such as premium calculators and anonymous risk inquiries, to check insurability without negative consequences for databases.

Frequently asked questions

The main purpose of BU is to provide financial security, particularly for those who directly depend on their income. It triggers when someone cannot practice their profession for an extended period due to illness or accident, ensuring financial stability even when life circumstances radically change.

The need for BU insurance becomes apparent when considering that about one in four workers becomes disabled during their career. This need is further highlighted by the often modest support from state disability pensions. To address this gap, it’s recommended to take out BU insurance early, when premiums are often lower due to a reduced health risk.

Yes, BU insurance is flexible, allowing for adjustments to the pension amount or the contractual terms based on changes in personal circumstances. This adaptability offers security in a dynamic world and can be beneficial for everyone, including office employees, freelancers, self-employed individuals, students, and interns.

Key considerations when choosing BU insurance include the amount of the pension payment, which ideally should cover about 75% of previous net income, and the benefit duration which should extend to retirement age. A dynamic premium structure, existing medical conditions, lifestyle factors, and flexibility in contractual terms are also important factors to consider.

The revaluation guarantee allows for an increase in the insured amount following significant life events, such as marriage or birth, without needing a new medical examination. However, it’s important to be mindful of any associated waiting periods and avoid abstract provisions that could complicate the recognition of professional disability.