Occupational disability can affect anyone. In the event of illness or accident, the insurance company then pays an agreed monthly pension – provided you have taken it out.
Occupational disability insurance can be useful for many working people. It takes effect when you can no longer work in your profession and thus secures the insured financially if the job no longer does.
Incapacitated or incapacitated: what's the difference?
The difference between occupational disability and incapacity for work is already explained in the word. Disability insurance only applies if the insured person is really completely unable to work. This applies not only to the job previously performed, but to any work activities. For example, a roofer can no longer work on the roof because of a stiff leg, but can do simple – and often lower-paid – helper jobs in his or another company. Since he can still do certain work, he is not considered unfit for work. Accordingly, the insurance does not pay either.
Occupational disability insurance takes effect if you can no longer do your previous job. © Imago
In the event of occupational disability, the insurance is always paid out on the basis of the last occupation exercised. If the insured person from the example above is no longer able to work in his last profession as a roofer, the insurance company must pay – regardless of whether the person could possibly carry out other activities. According to § 172 of the Insurance Contract Act, a person is considered to be incapacitated for work if he or she is likely to be permanently unable to exercise his or her profession due to an accident or illness. Pure old age is not a reason for insurance to pay out the sum insured.
The right time: Who should take out disability insurance and when?
Disability insurance can give every working person a security, because no one knows beforehand how his life will turn out. If an illness or an accident means that a person can no longer work in his or her profession, the issue of lack of money is often not far away. This supplementary insurance can also be useful for self-employed people who do not pay into the pension fund. Anyone who is otherwise adequately covered for an emergency, for example through civil servant status or other investments, does not necessarily need occupational disability insurance.
In order for occupational disability insurance to be worthwhile, you should take it out at a young age if possible. An advanced age or pre-existing illnesses, which make it likely that the insured will either soon have to make use of the insurance or will not pay in for much longer, drive up the costs. As a general rule, the earlier in your professional life you take out occupational disability insurance, the better – and cheaper.
Costs of disability insurance: Other factors that make it expensive
Age as well as health status and any illnesses therefore play a role in the calculation of monthly or annual insurance premiums.
0
Also Read
Six expensive habits of Germans – they each cost around 4,600 euros a year
READ
If civil servants are paid too little money, it is unconstitutional
READ
How much savers have on the high edge – are you above or below average?
READ
Do I need it? How to check your insurance properly
READ
How much money have you saved – and are you above average?
READ
Fancy a voyage of discovery?
My Area
In addition, there are other factors such as the profession practiced. People who work in dangerous jobs, such as roofing or war reporters, or who work physically demanding jobs, will have to pay more each month. The reason is that some professions have a higher probability that insured persons will really have to make use of the policy at some point.
The same goes for dangerous sports or hobbies. For example, anyone who states that they do free climbing or cave diving or that they race motorcycles as a hobby will probably also have to pay higher contributions.
This is how the insurance works: What happens in the event of occupational disability
The best way to get advice on disability insurance is to go to an insurance office. This can adapt the policy to the respective needs of the insured and make affordable monthly premiums possible. The insured person can then choose how high the sum insured, i.e. the monthly pension, should be, which he will receive in the event of occupational disability. The higher this sum, the higher the contributions.
If you are no longer able to work in your profession – whether because of a physical, mental or mental illness or because of an accident – then you will first be given sick leave by the doctor and your employer and health insurance company will step in. However, if the occupational disability becomes a permanent condition, the occupational disability insurance takes effect. From then on, the BU pension will be paid to the insured person on a monthly basis until the agreed contract expires or, in the best case, until recovery.