Occupational disability insurance in Germany: what to review

Occupational disability insurance, known as Berufsunfähigkeitsversicherung or BU, is designed to replace part of your income if illness or injury prevents you from performing your occupation under the policy definition. Whether it fits depends on the income at risk, available reserves, occupation and the terms an insurer is prepared to offer.

Define the income gap first

Start with essential household costs and other reliable income. Then consider how long savings would last and which statutory or employer benefits may apply. This gives a more useful target than choosing a monthly pension in isolation.

Read the definition of disability

Important points include how the policy describes your current occupation, the required degree and expected duration of incapacity, the benefit period and whether the insurer can refer you to another occupation. Rules on part-time work, career changes, parental leave and time abroad may also matter.

Prepare health information carefully

Applications normally ask about diagnoses, treatment, medication and periods of incapacity over defined time frames. Obtain records where necessary and answer the exact questions completely. Do not omit information because it seems unimportant. Anonymised preliminary enquiries may help clarify possible terms without turning every first contact into a formal application.

Compare the offer, not only the standard tariff

An insurer may offer normal terms, a premium loading, an exclusion or no cover. Compare what is actually offered, including escalation options, review rights and the process for claiming benefits.

Useful questions before applying

• How much net income would be missing each month?
• Until what age should the benefit run?
• Does the occupation description reflect the real work performed?
• Can the monthly pension increase later without new medical questions?
• Are exclusions narrow, clear and acceptable?

Alternatives such as basic disability or accident cover protect different risks and should not be treated as identical replacements.

The occupational disability page can help organise the first review.