Occupational disability insurance

Occupational disability insurance (Berufsunfähigkeitsversicherung, BU) protects your most important asset: your ability to work. It pays a monthly pension if you can no longer do your job for health reasons.

Why is it so important?

• One in 4 employees becomes occupationally disabled at some point in their life
• Most common cause: mental illness (41%), ahead of back problems (12%) and cancer (12%)
• State reduced earning capacity pension: on average only ~€950/month – not enough to live on

What should the BU provide?

• BU pension: 75% of your net income
• Term: until retirement age (67)
• Increase option guarantee: later increase without a health check
• Exclude abstract referral: the insurer must not refer you to another occupation

Typical costs:

• Office clerk, 30 years old: approx. €60–100/month for a €2,000 BU pension
• Roofer, 30 years old: approx. €150–250/month (physical job = more expensive)
• Engineer, 25 years old: approx. €50–80/month (young + graduate = cheaper)

Important: take it out early! At 25 and healthy: the cheapest premiums. After an illness: exclusions or rejection possible.