Disability and manpower

REQUIREMENT
It makes sense to take care of occupational disability insurance at an early stage. If you are young and healthy, you get good protection at the best conditions.

PRE-EXISTING CONDITIONS
Health questions must be answered completely and truthfully. Please do not hesitate to include diseases that you think are basically insignificant. Incorrect or incomplete information may release the insurer from its obligation to contract.

TERM OF TERMINATION
Do not let the contract end too early, even if this seems less expensive. A term agreement up to your retirement age – up to the age of 67 in the case of employees – is highly advisable to avoid payment gaps.

PENSION LEVEL
Calculate your needs taking into account other income you are entitled to. It is advisable to look for a supplementary insurance guarantee so that you can increase your pension later without a health check.

WHY SHOULD YOU TAKE OUT AN OCCUPATIONAL DISABILITY INSURANCE
Statistics show that one in five people in employment become disabled before they start their retirement pension. In the handicraft sector even every fourth person becomes unable to work. Since the occupational disability pension has been replaced by the reduced earning capacity pension for all those born after 1961, there is a particular need here. The possibility of being referred to another profession means that any activity in the general labour market must be accepted. The statutory disability pension is so small that it does not even cover the basic needs of a working person. Every responsible professional should close this gap in provision.

WHO SHOULD TAKE OUT AN OCCUPATIONAL DISABILITY INSURANCE
In general, every working person should consider private coverage of occupational disability as an absolute must, as the benefits from the statutory disability pension will not come close to being sufficient to secure their livelihood in the event of a reduction in earning capacity. Insurance against occupational disability is particularly needed by blue-collar workers, white-collar workers and craftsmen, but also by trainees and young professionals. Most self-employed persons and freelancers are not entitled to the statutory reduced earning a capacity pension. Even housewives, pupils and students are often not covered at all. However, occupational disability insurance is essential. The same applies to civil servants, who should take out additional insurance, as the benefits in the event of disability have also been reduced considerably.

WHAT CAN WE STILL EXPECT FROM THE STATUTORY PENSION INSURANCE TODAY?
For those born after 1961, the model of the occupational disability pension has been replaced by the reduced earning capacity pension: they only receive the full reduced earning capacity pension (approx. 34% of their last gross income) if they are capable of working for less than 3 hours a day. If you are capable of working 3-6 hours a day, you can only count on half the reduced earning capacity pension (approx. 17% of the last gross income). If you are ready to work for more than 6 hours, no benefit is payable, since the learned profession is not taken into account and pure workability counts in any possible gainful employment. If you were born before 02.01.1961, you will be slightly better off and receive half of the reduced earning capacity pension even if you cannot work more than six hours a day in your learned or comparable occupation.

HOW HIGH SHOULD YOUR OCCUPATIONAL DISABILITY PENSION BE PER MONTH?
The optimum amount of the occupational disability pension depends on your personal needs. However, you should cover at least one-third of your current net salary; the optimum would be 60% to 80%. When calculating your pension, you should take into account any payments from occupational pension schemes or rental and interest income, as the lower you can calculate your pension. The occupational disability pension should always be high enough to enable you to pay pension contributions even in an emergency. It is also possible to arrange for an exemption from your pension contributions in the event of occupational disability.

WHAT SHOULD YOU PAY ATTENTION TO DURING THE HEALTH CHECK?
The questions on health must be answered completely and truthfully in order not to risk the existing insurance cover. Insurance companies often ask for medical check-ups within the last five years. In the case of hospitalisation, the last ten years are asked. Especially in the case of a claim, the insurance company reserves the right to check your details carefully. This is done by releasing the attending physician from the duty of confidentiality. In addition to health issues, precise information on hobbies and profession is also required. If your profession changes during the contract period or you start a risky hobby, this does not have to be reported.