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Disability insurance: The most important questions and answers

2022-06-29T08:26:50.271Z


Whether for physical or mental reasons: no one is safe from disability. In order for a corresponding insurance to really take effect, you should avoid these mistakes.


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Disability can affect anyone.

Corresponding insurances are sometimes difficult to penetrate.

(icon picture)

Photo: Anchiy/Getty Images

How do I finance my life if I suddenly can no longer work?

Not only accidents, but also mental illness or overwork can lead to incapacity to work.

In many cases, it is therefore worth thinking about disability insurance early on.

We explain who should insure themselves against occupational disability and when - and how not to stumble over contract clauses and health issues.

When should I take out disability insurance?

The tariffs are based on age, occupation and medical history.

The earlier I take out disability insurance, the cheaper it will be.

Sandra Klug from the Hamburg consumer advice center says: "To put it bluntly: from the age of 30 you are old for an insurance company, from 40 you are very old and after that you are practically dead." The insurance cover is then at the latest hardly affordable, says Klug.

It can therefore make sense to take out BU insurance while you are still at school, training or studying.

Because with age, the pre-existing conditions usually do not decrease.

As a pupil or student you have to be able to afford a corresponding policy, but you also get a particularly cheap tariff, says Klug.

The choice of profession is also decisive for the time of the conclusion of the insurance.

If the dream job entails a particularly high risk – if I want to join a special task force or the German army, for example – then it makes sense to take out insurance before you start your career.

Because: You don't necessarily have to tell the insurance company about a new career path.

Here it is important to ensure that the contract allows for supplementary insurance without a new health examination.

It's the same with pre-existing conditions.

If it is already foreseeable that certain medical risks will arise, it can also make sense to take out insurance early on.

For example before psychotherapy.

If I have just had a certain illness, it may be advisable not to submit an application yet, since some insurance companies only look back on the last five years.

What do you need for disability insurance?

If occupational disability insurance is an option, it is important to be well informed and not to make any mistakes when submitting the application.

Therefore, before a degree is completed, all data must be thoroughly collected in order to be able to submit complete work and medical histories.

When answering the questions about the state of health, it makes sense to ask a doctor for help.

At the very least, the medical record should be requested.

In addition, a so-called patient receipt should be obtained from the health insurance company.

Such information from insured persons goes back at least 18 months and provides an overview of all diagnoses and treatments.

It is important to state every ailment.

If incorrect information comes up later, the insurance company does not have to pay in the event of disability and the contributions were for nothing.

What costs can be expected?

How much disability insurance costs can be based on the following criteria:

  • age

  • profession

  • Pre-existing illness

  • Hobbies and lifestyle habits (e.g. high-risk sports or nicotine consumption)

The classification into a risk group is anything but uniform among the various providers.

"Insurers sometimes form over 50 different occupational, activity and risk groups for calculating premiums," says Constantin Papaspyratos, chief economist at the Association of Insured Persons (BdV).

The most expensive professional groups usually include people who do physical work, such as a hairdresser, a roofer or a nurse.

»The problem is that the professions that need the most security often have the lowest incomes.

But it's the most expensive for them," says consumer advocate Klug.

In this area in particular, it can be helpful to take out insurance before you start your career.

Some professions are also considered to be de facto uninsurable, such as pilots, flight attendants or professional athletes.

Examples of premiums in brochures or on insurers' websites are often "shop window prices," says BdV economist Papaspyratos, they say nothing about the individual premium.

The different risk groups, as well as the factors of previous illnesses, age and hobbies are much more important for the actual amount of the contribution.

However, the individual weighting always depends heavily on the provider.

What should BI insurance pay me?

In order for the disability insurance to be worthwhile, the monthly pension should exceed 1000 euros, advises Sandra Klug from the consumer advice center.

Otherwise you are just releasing the state from its duty of care.

Because with government support such as basic security and housing benefit, you can also get almost 1000 euros.

"The best thing would be for the disability pension to be based on net income," advises Klug.

Most insurers insure about 80 percent of net income.

Can I have my disability insurance paid out?

Disability insurance is risk insurance, similar to liability insurance for a car.

In the event of termination or retirement, there is usually no money back.

Why can I be rejected for disability insurance?

No provider is obliged to take out BI insurance.

Career choice, medical history and the risk factors listed above can result in not only high premiums but also the rejection of a contract.

The problem: Anyone who has been rejected ends up on a so-called "black list," explains Klug.

"Any other insurer who looks in there can see: Ah, the person has been rejected before, we don't want them either."

It is particularly difficult to get a cheap policy if you have a previous mental illness.

"If you have just been or are in therapy, you will not be insured," says Klug.

Anyone who does get insurance should expect high premiums.

Chronic diseases such as type 1 diabetes or diseases such as cancer are also often rejected by those affected.

How do I avoid being rejected?

To avoid this, you can make a so-called anonymous request before the actual application.

Insurance brokers or consultants can help with this.

They record health questions, send them anonymously to insurers and rattle through the various offers.

"Real estate agents or consultants who submit many disability applications also know which pre-existing conditions are the best to go to which provider," says Klug.

What do I have to consider when concluding the contract?

With or without a broker – when taking out disability insurance, according to Klug, there are a few details to consider:

  • Abstract references

    : Klug advises that they should be avoided in the contract.

    »As an example: A painter can no longer paint walls, but he could, depending on his training and salary, sell paints in a hardware store.

    Then, regardless of whether he finds a job at the hardware store or not, he would not get a disability pension.”

  • Six-month prognosis

    : As a rule, a doctor must prognosticate a disability of at least six months for the insurance to take effect.

    However, some contracts contain the wording "permanently" in the forecast.

    Caution is advised here.

    Because that means that a doctor has to say that you cannot work for at least three years.

  • Also take out legal protection insurance:

    It may seem absurd to take out insurance for insurance.

    In fact, it is always advised to do so.

  • Post-insurance guarantees

    : They are particularly important for young policyholders.

    Because they guarantee that you can increase the sum insured in certain situations without having to undergo another health check.

    For example, when you get married, have children or become self-employed.

  • Coupled offers

    : Klug advises against combined contracts such as capital-forming pension insurance coupled with disability insurance.

    Capital-forming insurance is expensive and poor in returns.

    In addition, the contracts cannot be decoupled if you no longer want to build up capital.

    Both types of insurance would have to be canceled in case of doubt and the protection from disability insurance would no longer apply.

Source: spiegel

All news articles on 2022-06-29

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