Who needs occupational disability insurance? – Image: © RioPatuca Images #61088851 – stock.adobe.com
One's own labor power is the greatest asset we humans possess. Most employees in Germany earn well over a million euros in the course of their working lives. But this is only as long as one's own working capacity is fully available. However, it is not so improbable that this labor is at risk. Disability insurance is available for these situations.
For whom this makes sense and which cases are covered, you will learn in this article.
What does the BUV insure??
Occupational disability insurance (DI) essentially protects the current standard of living in the chosen profession. As a rule, it kicks in as soon as you can work less than 50% in your last job. Depending on the amount of the premiums, up to 80 percent of the last net salary can be covered.
Causes of occupational disability can be illness, bodily injury or a decline in strength that is more than commensurate with age.
Is not enough the statutory insurance?
Many people rely on the state's social security system in the event of a possible occupational disability. However, few are aware of what this coverage actually looks like in the event of occupational disability.
Since 2001 there is no state occupational disability pension.
Only disability is still covered by the state. However, this refers to the working capacity itself and not to a specific profession. Anyone who is unable to work is therefore not automatically incapacitated for work.
A reduction in earning capacity does not exist if any activity can be performed for at least 6 hours a day. Only those who are able to work less than 3 hours a day are considered to be fully incapacitated. If you are able to work between 3 and 6 hours on the general labor market, you are considered partially incapacitated and will only receive half of the reduced earning capacity pension.
Even if you are a highly skilled worker, in these cases you are forced to work any job you can, regardless of the type of job and the amount of pay you receive. There is no entitlement to maintain the standard of living or to exercise the learned profession. A department manager who is unable to work due to burnout does not have to be compulsorily disabled. For example, it could be that she can continue to perform a job on the assembly line. In these cases, she is forced to carry out this activity because she does not receive a state pension. A hairdresser who develops an allergy to hair dyes is forced to accept simple jobs that do not require training or to retrain.
Even in the case of disability, the payments are low compared to an adequate occupational disability insurance. You can find out what you are specifically entitled to in the event of disability from your pension statement. The average disability pension in 2020 was 840 euros.
Moreover, this state protection only applies to employees who have also paid into the pension insurance accordingly. The state pension for reduced earning capacity does not apply to the self-employed.
Special regulations also apply to civil servants.
How likely is an occupational disability?
In Germany, statistically every 5. Woman and every 3. Man incapacitated before retirement age. Causes are primarily nervous disorders, which include mental illnesses such as burnout. In second place are physical ailments, i.e. diseases of the skeleton and musculoskeletal system, for example after a slipped disc. In third place see cancers.
In addition, accidents, other illnesses and sudden allergies can also cause a career disability.
For which professions should a BUV be taken out??
As the statistics show, occupational disability is advisable for all professions. Some professions that are very physically or mentally demanding have a higher risk.
Sitting or standing for long periods of time every day, as well as challenging physical work, can also lead to severe stresses and strains that have a corresponding effect.
Last but not least, serious illnesses – such as cancer – or accidents can ultimately affect everyone.
At what age should a BUV be concluded?
It makes sense to insure your working capacity at any age. At a young age, one has a particularly high value that must be insured, namely the working capacity of the entire life. The older you get, the higher the risk of suffering from physical ailments. With more responsibility in the job, the psychological risks also increase.
If you start a family, you are no longer responsible for yourself and should therefore protect your working capacity. In particular, if a family model is chosen in which one person is the main breadwinner, this person should be particularly well insured. The financing of the family home often depends on the income of this person, so that an occupational disability can have serious consequences for the entire family.
The advantage of taking out an accident insurance policy at a young age is that the premiums are much lower and often no health check is required. Depending on the contract, the occupational disability insurance can be adjusted in such a way that it automatically grows along with the salary and higher salaries are also covered later on. No new contracts with higher premiums or a health check have to be concluded.
The older you get, the more pre-existing conditions you may have, which can limit or make a BU insurance impossible. Parents can take out appropriate insurance for their children with very low premiums.
Can you insure the working power in another way?
In addition to occupational disability insurance, it is also possible to insure against certain risks to one's ability to work in other ways.
- For example, there is a basic ability insurance, which covers basic skills such as speaking, hearing or driving a car.
- Dread disease insurance protects against the losses caused by serious illnesses such as cancer or multiple sclerosis.
- A private disability insurance can supplement the statutory coverage, especially for physically demanding professions.
- Private accident insurance helps in the event of accident-related limitations.
- Overall, however, these insurances are not as far-reaching as a classic occupational disability insurance and are only an alternative if BU insurance is not an option due to health checks or financial possibilities.