January 2019

“Incapacity insurance” and “Disability insurance” refer to the same thing. It is an enormously important safeguard that provides financial assistance in the event of permanent incapacity for work. Without them, a life on the verge of poverty threatens, because the state benefits are very low in occupational disability. However, the insurance company pays a pension, the amount of which insured persons determine themselves.

Why is a disability insurance important?

One in four employees becomes permanently disabled before retirement. Because the profession can no longer be practiced, for example due to illness or accident, it is not just the regular income that falls away. Affected persons also receive very little financial assistance from the state, which is subject to strict conditions. This achievement is by no means sufficient to maintain the usual standard of living. In addition, if there are financial obligations such as the payment of a loan, not only health but also serious economic problems are attributed to the persons affected.

However, the right contract for disability insurance or occupational disability insurance offers sufficient protection and can keep the financial burden low in the long run.

Unable to work – what does that mean?

Although disability insurance is usually the same as disability insurance, there is an important difference between disability and disability. The first describes the state of being unable to perform certain occupational activities at times. Employees are then usually paid for a maximum of six weeks.

People who become incapacitated for work, for example due to a flu illness, are usually quickly fit again and can continue to work. However, if this becomes a permanent condition, then there is an occupational disability. This can affect anyone, regardless of whether the profession is mentally or physically oriented. Causes of the permanent leaving the job are mainly mental and physical stress. Only with every 10th disability is an accident the reason.

Example: A fitness trainer can not move a leg due to illness. He is declared incapacitated for work in his profession. If this becomes a permanent restriction, he could still exercise his office work, for example. From the point of view of the statutory pension insurance the fitness trainer is therefore not incapacitated. He is not entitled to a disability pension.

However, a disability insurance or occupational disability insurance generally starts already when the person concerned can no longer work only in his last job. The insurance protects him in this way from having to take on another job or to get into financial distress.

Editor’s Choice

Who chooses a tariff with Nachversicherungsgarantie, can after certain events (for example, marriage, birth or change of occupation) increase the insurance coverage without retesting health. This is beneficial because it can not lead to any health-related surcharges or rejections.

Incapacity insurance in the test

Before those who are interested in an offer, it is advisable to compare the numerous tariffs in the market in terms of price, services, contract terms and service. To get an overview of the advantages and disadvantages of individual offers, it is worth taking a look at current tests and test winners. There are several studies on disability insurance or occupational disability insurance. Among other things, the Stiftung Warentest regularly checks which tariffs are best suited for apprentices and students. But Focus-Money also determines its own test winner. An overview of all relevant investigations can be found on the overview page of the occupational disability insurance tests.

Editorial Tip

You must provide information about your health before you take out the insurance. It is important that you answer the health questions in the insurance application completely and truthfully. The questions differ between the applications. If your details indicate errors, the insurance company can withdraw from the contract.

Is there a disability insurance without health issues?

As insurers assess the individual risk of occupational disability on the basis of health, inter alia, interested parties can not avoid having a health check. In some cases, however, there are special promotions by the providers in which consumers are asked, for example, to shorten their health issues.

Who knows that due to his pre-existing illnesses, he might have difficulty completing a disability insurance, should contact an insurance expert for advice. Because this has the opportunity to make an anonymous request to the insurer. If this is negative due to the health examination, for example, the refusal will not be deposited in the information system of the German insurance industry. Other providers can not check whether the applicant has ever been rejected by a company. Thus, the chances of taking out insurance with another company increase.

Alternatives to disability insurance

Those who can not take out disability insurance or who are expensive can choose from a few low-cost alternatives that are less powerful. For example, a disability insurance provides protection against disability. However, this insurance is not beneficial for all groups of people. You can read more about this on the disability insurance theme pages.

Another insurance, Dread Disease Insurance, on the other hand, is provided if insured persons fall ill with a serious illness. This is specified in the contract. It is irrelevant whether the profession can continue to be exercised or not.

Private accident insurance can also be an alternative. However, this only pays if an accident leads to disability of the customer.

Combine contract with other insurance?

Disability insurance can be combined with other pension plans. These are called occupational disability insurance. However, those interested should consider carefully whether they want to combine the protection of the worker with a pension.

It makes more sense to have two separate contracts. For example, in the case of financial bottlenecks, only the pension agreement can be made free of contributions. The insurance against occupational disability, however, remains unchanged. Even if you want to terminate a contract, this does not end at the same time the other policy.

Editorial Tip

From the point of view of consumer advocates, only the combination of occupational disability and term life insurance is conceivable, since the coverage for death is often very favorable.

How much is the disability insurance?

The cost of disability insurance or occupational disability insurance depends heavily on individual factors. For example, how old are people interested in signing a contract and which profession do they currently practice? Are there pre-existing conditions that can lead to risk premiums or even to the refusal by the insurance? What pension level do customers want? Should the contract run until regular retirement or end earlier?

As a rule, the earlier the degree, the cheaper the insurance costs. Because at a young age insured people are usually healthy. In addition, contributions to those working in a physically demanding job are often higher than those for a desk job, as they are more likely to divorce the job because of physical discomfort.

Since the cost of insurance depends on many criteria, an individual price-performance comparison is not only useful, but also essential to find an optimal tariff.

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