If you are forced to leave your profession due to illness or accident before reaching retirement age, you face a serious problem. For those born after 1960, the statutory pension system only pays a small disability pension in cases of total incapacity to work.

The consequence: You receive these minimal state benefits only if you are almost entirely unable to work. If you could theoretically perform any type of work, even a lower-paid job, you receive nothing.

To protect yourself from financial collapse in the event of accident or illness, it is essential to take personal responsibility, ideally through private occupational disability insurance. But which policy is right? What should you consider when signing the contract? How high should the benefit be in an emergency? This website provides initial answers to these questions.

Disability pension

The most important benefit of occupational disability insurance is the monthly pension, which begins when you are unable to work due to an accident or illness.

Often, insured individuals are only partially disabled, so full pension benefits may be paid even if the disability is less than 100 percent.

The insurer may also assist with reintegration into the workforce, for example through:

• Disability-adapted workplace modifications

• One-time payments at the end of a temporary disability period

• Assistance services that go beyond financial support, such as rehabilitation planning

Financial protection for increasing needs

Through indexation — regular increases in pension benefits and premiums — you can adjust your occupational disability coverage to rising living costs and growing financial needs.

If a guarantee of subsequent insurance was agreed upon at contract inception, you can increase your coverage without a new health assessment in situations such as marriage, childbirth, or property acquisition, ensuring that any future disability pension meets your increased financial requirements.

Occupational disability insurance is not only necessary for people who are currently employed. To ensure reliable protection in case of incapacity, it is also recommended for students, apprentices, homemakers, and university students to take out coverage.

Important: You should secure occupational disability protection while you are still young and in good health. Insurance companies often reject applications for even minor pre-existing conditions or offer less favorable terms.

Few people want to think about the possibility of being unable to continue in their profession at a young age. Yet, approximately one in four workers becomes occupationally disabled before retirement, due to an accident or serious illness. It is therefore important to inform yourself early about appropriate precautionary measures.

Since January 1, 2001, all workers born after 1960 receive essentially no statutory pension payments in the event of occupational disability. Instead, the reduced earning capacity pension was introduced, which is only available to those unable to perform even three hours of any work per day. Moreover, these government benefits are so low that they cannot protect you or your family from financial collapse.

Comprehensive protection at affordable premiums

The cost of occupational disability insurance depends on several factors, including the scope of benefits offered by the insurer and your personal risk of becoming prematurely disabled.

Comprehensive occupational disability coverage is cheaper for office employees, due to their lower health risk, than for construction workers or teachers. A policy that pays benefits only in the event of total incapacity to work is less expensive than one that pays immediately upon occupational disability, even if you could still work in another profession.

The price alone is not decisive when determining which occupational disability insurance is best for you. The policy terms and conditions are equally important. It is advisable to seek professional advice: especially regarding benefits, you should carefully review which policy best meets your individual needs.

Secure low premiums

By arranging coverage at a young age, you can lock in lower premiums and avoid exclusions due to pre-existing conditions. Take your time to compare offers carefully.

When reviewing policies, pay attention not only to price but also to the contract terms. Instead of accepting an outright exclusion for certain illnesses, it may be better to agree to a premium surcharge, clearly documented with the insurer, so that the surcharge is removed once the condition is cured.

Your profession should remain the reference for recognizing occupational disability, even during parental leave. For homemakers, coverage is typically more limited.

Don’t underestimate your needs

The contract should not expire too early, as many people become occupationally disabled around age 50. The disability pension should be sufficient — a common guideline is 75 percent of net income at age 45. The policy should also allow for increasing coverage without a new health assessment, so the pension can be adjusted after life events like marriage or childbirth.

Important: Always answer the insurer’s health questions truthfully. Providing false information can result in the loss of coverage.

How to find the right occupational disability coverage

Once you decide to privately insure against your personal risk of occupational disability, you are faced with a large number of providers, an almost unmanageable variety of products and tariffs, and widely varying prices and benefits.

You should therefore not rush the decision when selecting a specific occupational disability insurance policy. Purchasing a policy online without professional advice is not recommended — this is a complex subject with many important details to consider.

Seek professional advice to analyze your personal risk situation and compare the wide range of available policies carefully.