As soon as you start your professional life, everybody recommends you this insurance: the occupational disability insurance. But what does it cover? And does everyone really need disability insurance? Does this make sense for any profession? At what time it should be taken out? Here you can find out everything you need to know.
What is the risk of occupational disability?
On average, one in four people in Germany becomes unable to work before reaching retirement age. Depending on age and gender, this percentage ranges from 30 to 43. Only 10% of cases are due to accidents. The rest are all kinds of diseases, which in principle can hit anyone.
For which professions do you need occupational disability insurance?
Basically, occupational disability insurance is recommended for all professions, because occupational disability can affect anyone. In physically demanding occupations, there is an increased risk of injury and physical wear and tear. Office work can cause back problems due to constant sitting. Job burnout and depression are the main causes of incapacity for teachers, but can also affect office workers and managers.
Finally, an accident or serious illness that leads to inability to work can affect anyone.
Freelancers, such as z. B. Doctors, are usually covered by the relevant pension fund. But in contrast to private disability insurance, it only covers 100% disability.
What does the occupational disability insurance cover?
Disability insurance covers the situation in which you are unable to perform your job for an extended period of time or permanently. Unlike a disability, this is not about the inability to do something, but about the chosen profession. For example, a manager who can no longer hold his job due to burnout but can still work as a doorman at his company is not unable to work because he can perform any activity. In this case the occupational disability insurance comes to the rescue.
Incapacity to work can occur throughout working life, z. B. as a result of an accident or serious illness. The main causes are mental illnesses such as depression or burnout at work, but also physical ailments such as a hernia or serious illnesses, especially cancer.
If you have no other means of permanent coverage and depend on your ability to work, disability insurance makes sense in any case. Government assistance in these cases is very limited. Only in the case of disability, when you can no longer work, there is in some cases a small pension from the state. It is usually not possible to maintain your current standard of living with this annuity. Disability insurance, on the other hand, can cover up to 80% of your take-home pay. In any case, the consequences for the rest of your life need to be considered.
Especially if you have a family that depends on this income, you should insure them accordingly. The same is true if you have high fixed expenses and obligations, such as z.B. a loan for a property. In the latter case, an uninsured disability could even result in the family home having to be sold at a great financial loss.
When you should buy disability insurance?
It is advisable to take out disability insurance at a young age. On the one hand, the premiums are then much lower because of the lower risk. On the other hand, you insure yourself with a much higher amount, because it is the income of the rest of your working life. It is possible to take out occupational disability insurance for pupils or students. They too can become incapacitated even before they start their working lives due to stress, an accident or illness.
In addition, it is important to know that a health check is regularly carried out when taking out occupational disability insurance. Insurance company wants to make sure it doesn't have to pay for damages that have already been incurred. As a rule, the younger you are, the fewer illnesses you have. Once you've been treated for back pain or mental health problems, it can be difficult to hide these issues, which are often the main cause of your disability.
Can I take out disability insurance even if I have a pre-existing condition?
As a rule, insurance companies pay close attention to who and what they insure, so you don't take on too much risk. If you have a pre-existing condition, taking out disability insurance may be a good idea. Although sickness is usually excluded, you may be unable to work for a number of other reasons that are covered. In some cases it is also possible to include a pre-existing condition and pay higher premiums for it.
In many cases, there are also other insurances, such as long-term care insurance or accident insurance. However, these do not cover the same as an occupational disability insurance policy.
If you are not eligible for disability insurance due to pre-existing conditions, you may be able to cover certain risks with other insurance, z. B. with basic disability insurance, insurance for serious illnesses (dread disease insurance) or accident insurance. However, these are not as comprehensive as occupational disability insurance. They only cover certain risks and are therefore not an adequate substitute.