Disability insurance calculator

Disability insurance calculator

Disability insurance

BU tariffs necessarily compare: Cheap alone is not enough

One in four workers does not make it to the retirement pension. Unable to work – this is the diagnosis for those affected. But that’s not all: state benefits in the event of reduced earning capacity are far from sufficient. If you want to protect yourself from the financial risk, you need a disability insurance. But: The policies for this elemental protection are expensive. Therefore, only 17 million of the nearly 43 million employees have taken out occupational disability insurance. And even those who have a contract in their pockets, can not be sure that will be paid on the occurrence of disability. Because cheap policies refuse the benefits in an emergency.

What does occupational disability mean?

The definition of disability is regulated in the insurance conditions of the respective insurance policy. These are definitions of the private insurance industry, in the statutory pension insurance exists the concept of occupational disability for those born after 1961 no longer exists.

As a rule, being unfit for work is who his previous occupation for a period of time six months and can no longer exercise more. It is a permanent condition in which it is questionable whether an improvement occurs.

This is different from the incapacity for work, which is temporary nature. In the disability is a complete inability to perform any professional activity. In civil servants one speaks of invalidity.

The occupational disability must be proven by a medical certificate. No matter what cause has led to it.

The definition of occupational disability is given in the respective insurance conditions. A typical formulation is: "Full disability is defined as the presumption that the insured person is incapable of exercising his or her last practiced profession as a result of illness, personal injury or loss of energy that is medically proven for six months without interruption. “

Disability causes

The diseases leading to occupational disability have changed in recent decades. In the 1960s, BU cases were mainly due to physical ailments, so are nowadays mental illness at the top of the most common causes of disability. This is evident from a statistic of the German pension insurance. Also disorders of the musculoskeletal system and cardiovascular diseases provide many cases of BU.

Why should I take out occupational disability insurance??

The occupational disability insurance is one of the existential insurance in addition to the liability and health insurance. Only those who have a large fortune and financially sufficient, need not hedge his workforce. However, most of the workforce will be dependent on earned income.

In the absence of income, the state benefits are far from sufficient to make a living. Thus, the full earning capacity pension is only just under 30 percent of the gross income. In addition, the state can refuse to pay the pension, as long as another activity can be carried out for at least 6 hours a day. Therefore, a private insurance of disability is indispensable.

When should one take out occupational disability insurance??

Basically applies to the occupational disability insurance: Je earlier to conclude the contract, the more better is the post. Because that entry age is an essential criterion for the amount of the premium. Older applicants pay a higher premium than younger ones.

In addition, there is a risk of health complaints or diseases, the older you are. The insurance company may in such cases one higher contribution request or even reject the application

What should the monthly pension benefit be??

The amount of the pension benefit to be insured is based on previous income and the monthly fixed costs. These include costs for rent, car, lifestyle, loans and insurance.

The decisive factor for employees and self-employed persons who pay into the statutory pension insurance is first of all the calculation of the right to a disability pension. The difference between the monthly net wage and the statutory claims results in the so-called pension gap, which has to be secured privately. As a rule of thumb, pension experts recommend a hedge of 65 to 75 percent of the current net income. It should be noted, however, that the pension benefits from an occupational disability insurance are taxable.

What term should a contract have?

When making your application, you must decide how long the insurance cover will last and until when the BU pension will be paid. It is clear that a longer term means a higher contribution.

For most employees, the regular retirement age is 67 years. If the disability insurance ends at the age of 60, you have seven years "bridge", if the case occurs. Basically, the BU payment should end only when the benefits from the statutory pension insurance use.

Anyone who retires earlier pays less on statutory, occupational and private pension contracts. Thus, the retirement pension is significantly lower. Therefore, the recommendation can only be the term of the BU insurance until the legal retirement age to choose.

Safeguarding occupational disability in a targeted manner: The path to the best contract This guidebook provides information on the optimal contractual clauses and insurance cover in sufficient amounts.

How are the contributions calculated for the BU policy??

The premium includes numerous factors. Personal factors are entry age, job, of the health status of the applicant and his Hobbies and Recreational sports. In addition, the influence also insured Services the premium amount. These include the amount and duration of benefits of the BU pension, the period of insurance, the guaranteed pension increase in the event of occupational disability and the chosen insurance conditions.

What should the insurance policy contain?

Hardly any insurance company is as complex in terms of terms as a BU policy. It is important for you as a customer if the fine print is uncomplicated and easy to understand. A good contract should therefore include the following points:

  • Abandonment of abstract referenceIf the insurance case occurs, the insurance company waives the reference to another activity. This also applies if employment in the other profession would be possible.
  • scope: The protection of the insurance is valid worldwide – also for holiday and business travel, no exclusion of liability for negligent traffic offenses or other offenses.
  • Forecast period: The BU pension should be paid if the doctor forecasts at least 6 months of incapacity for work. Unfavorable tariffs provide for a permanent incapacity to work, which equates to a period of three years.
  • No contribution increase with changed risk: Private or professional changes should not lead to a premium increase.
  • NachversicherungsgarantieFor certain events, e.g. Marriage, the birth of a child or the acquisition of a property, the monthly disability pension should be increased without re-examination to take into account the increased need for protection.
  • Retroactive paymentIf the occupational disability is determined only later, the BU insurance should still provide retroactive benefits.
  • Free choice of medical doctors: The decision as to whether or not you have an occupational disability is with your doctor and not with an insurance company doctor. If a second opinion is required, the insurance provider should cover the costs.
  • Waiver of doctor order clause: The insurance company refrains from obliging the customer to carry out medical treatment and operations or to order medical visits.
  • No registration required in the case of health improvement or reduction of the BU or resumption of a professional activity.
  • health check: The insurance provider should provide customer-friendly and understandable health issues as well as request periods.
  • dynamics: The insurance contract should include an annual inflation-equalization mechanism. Then contribution and performance are increased at regular intervals (contribution dynamics). This makes the insurance inflation-proof. In addition, some companies still offer the performance dynamics. If the insured event occurs, the pension benefit will be increased by the agreed percentage.

What should you consider before concluding the contract?

In addition to the difficult-to-understand contract provisions, potential new customers are above all concerned with the health issues in the application. The answer to the questionnaire is of considerable importance. Forget an indication, this can later be interpreted at your expense. You should therefore note the following points

  • Answer questions correctly: Health questions in the application should be answered truthfully and completely. Ask your health insurance company and physicians for a list of treatments over the past five years. For certain clinical pictures (for example, mental illness), the request period is even ten years.
  • Independent advice: Take advice. These can be insurance consultants, employees of a consumer center or insurance brokers. Discuss with the consultant what hobbies and illnesses exist and what kind of hedging request you have. So you can have an individual offer created.
  • preliminary inquiry: Make an anonymous submission to multiple providers (three to five). The pre-inquiry is often online possible. Thus, the data is not stored in a refusal information and information file.
  • Check the test reports: Different consumer magazines check and evaluate the different tariffs. Review the latest test reports, for example, from Finanztest Stiftung Warentest and Focus-Money to the best disability insurance to find a suitable offer with good price-performance ratio
  • Make several applications: Apply directly to several insurance companies. Since the providers assess the risks differently, there may be different acceptance decisions and offers for the same clinical pictures.
  • Choice of insurance company: Make sure that you choose a financially strong insurance provider with above-average credit rating and ratings and many years of experience with BU and binding criteria
  • Examination of the contractual conditions: Check the contract terms to see if you have all the important points.
  • Calculator occupational disability: Use online BU calculators to calculate and compare offers.

Current contribution comparison

Example calculations for one 30-year-old banker, who wants to secure a BU pension of 1,000 euros per month until the end of age 65:

  • Alliance: 48.23 euros
  • Old Leipzig: 43.30 euros
  • Axa: 40.01 euros
  • Generali: 43.33 euros
  • Gothaer: 35,40 Euro
  • HanseMerkur: 31.12 euros
  • HDI: 40.69 euros
  • Nuremberg: 35.95 euros
  • Swiss Life: 38.12 euros
  • WWK: 58.61 euros
  • Zurich: 40.19 euros

Change disability insurance

Old contracts often have gaps in performance compared to new tariffs. It therefore makes sense to regularly check your own occupational disability insurance under the following criteria:

  • Sufficient protection: Is there still sufficient protection or are new contracts offering better protection? Due to the further development of the offer, it is advisable to review the scope of existing BU contracts from time to time.
  • career change: By taking up a new job, the risk profile in BU insurance can change. Since the occupational group is not changed in an existing contract, the change may lead to a lower contribution.
  • Higher hedging requirementsEspecially with a higher need for hedging due to newly added risks (eg family, mortgage lending) the insurance policy should be adjusted.
  • Adjustment of premiums: Insurance companies revise their premium calculation every few years. Up-to-date statistics on benefit cases, as well as the latest data on the development of costs and interest on capital investments, can reduce contributions for BU tariffs. In recent years, many providers have lowered their contributions to new customers due to the high level of competitive pressure. A first current premium overview with the currently most favorable tariffs can be found, for example, via an online calculator or via current offer comparisons of, for example, Stiftung Warentest. A calculator offers the advantage that you can individually calculate and compare prices in advance.

What should be considered when changing
In principle, one should note some points before changing the occupational disability insurance. If you decide to change your insurance please note that you:

  • Wait for confirmation of receipt: an existing contract will never be terminated until the confirmation of acceptance has been given by the new insurer.
  • Check insurance conditionsInsurance conditions are the nuts and bolts of worker protection. It is therefore particularly important to compare the small print of the contracts.
  • Note the insurance period: When comparing the tariffs, the insurance data can also be checked. This includes, for example, the period of insurance, ie the period up to which the agreed BU pension is paid in maximum.

Variants of private occupational disability insurance

To safeguard the risk of occupational disability, there are several options, including:

Term Life Insurance with BU Supplementary Insurance (BUZ)
Here the occupational disability insurance is combined with a death protection, the term life insurance. With the term life insurance, the survivors can be hedge.

Life or pension insurance with occupational disability insurance (BUZ)
In this variant, the risk protection is combined with a saving process. In this way, in addition to the risk insurance and the private pension.

The savings portion for the pension insurance results from the paid-in contribution less the cost components for the insurance protection and administration and sales. With the BUZ is to be noted that the monthly contribution is clearly higher than with the SBU. If you use e.g. As a result of unemployment, you are in financial difficulties and want to make the contract free of contributions, you stand in this case without protection.

With the BUZ, the sole continuation of BU protection is not possible. In the savings contract a non-contributory continuation of the contract can be integrated in case of occupational disability. This ensures that, when the insured event occurs, the pension target will be met in any case. This is an attractive opportunity for young professionals to combine old-age provision and risk protection.

Basic pension with additional BU insurance
Also with this product a saving procedure with the occupational disability protection is combined. The contributions can be tax deducted as special expenses. However, this requires that the BU share in the total contribution of the basic pension amounts to a maximum of 50 percent. It should be noted that the pensions have to be taxed higher in the so-called first shift than in the SBU. In this respect, one should assure a higher pension immediately upon application in order not to jeopardize the care goal. In addition to the BU insurance, the remaining contribution components are used to pay a lifelong, agreed pension from the age of 60.

Frequently asked questions (FAQ):

Is the combination of Rürup-Rentenversicherung and supplementary insurance useful?

If you include your pension plans in a Rürup pension agreement, you can also deduct the contributions for the occupational disability insurance (BUZ) to a large extent from the tax. In return, the pension benefits are subject to full taxation. Especially in the case of the Rürup pension, the installation of a BUZ leads to high monthly contributions. Because the BU share may make up a maximum of 50 percent of the total contribution.

The problem is the high financial burden of such a contract when you get into financial difficulties. If you make the main insurance contribution-free, also the insurance cover for the BUZ rests. If one resumes the contribution payment, the contractual part of the disability insurance can only be revived if a renewed health examination is completed. Therefore, especially consumer advocates recommend the strict separation of risk protection and saving process.

Can a hobby increase the contribution to occupational disability insurance??

An occupational disability is not always the result of an accident at work, but can also be caused by an accident during leisure time. Therefore, before entering into a BU contract, the insurance companies also check the individual risk potential through leisure activities in addition to the profession. The insurance audit refers to the so-called recreational risks.

Dangerous hobbies where the risk of occupational disability is increased lead to a higher BU contribution or, in extreme cases, to a refusal by the insurer. The risk sports include e.g. Kickboxing, skydiving or cave diving unaccompanied. In individual cases, the insurer decides whether the sport practiced can be insured with a premium supplement or whether the application is rejected.

Football, handball and skiing are not among the high-risk sports, as long as they are similar in type and scope to conventional recreational sports.

In any case, it is important to inform the insurer in confidence about the risk-related hobbies that are taking place before concluding the contract. If something is concealed, the insurer can reduce the agreed benefit if the insured event occurs, or in very serious cases even cancel the breach of duty.

Can you increase the BU pension later??

The increase in the occupational disability pension generally requires a renewed risk assessment. Only the momentum or reinsurance guarantee offer an expansion of the BU pension without a health examination. In case of serious health complaints, the insurer may refuse to increase the BU pension. Otherwise, a premium surcharge (risk premium) is levied for the increased risk of illness or the illness is excluded in the contract.

Does one have to inform the occupational disability insurance pre-existing illnesses?

In the case of private occupational disability insurance, the state of health is checked before the contract starts. As part of the risk assessment, the applicant is required to provide complete and truthful information on pre-existing conditions. As a rule, previous illnesses of the last 3 to 5 years and in case of inpatient treatment or psychotherapeutic diseases up to 10 years have to be reported. The obligation to co-operate of the applicant results from § 19 insurance contract law.

If you do not follow this obligation, it is called a breach of duty. A pre-contractual breach of duty may result in the contract being terminated by the BU insurer or, in the case of incapacity for work, the benefits may be reduced or even denied.

Should an occupational disability insurance already be completed for students?

The sooner you sign a contract, the cheaper the terms are. Therefore, some insurance experts advise already graduating school age. Does that make sense? Why should one take out a student insurance for students who can not yet earn their own income and can not become unfit for work??

The main reason is the state of health. After all, adolescents usually do not bring any relevant pre-existing conditions that make BU protection more expensive or even impossible. Even high-risk occupations do not exert young people in school or at university. Therefore, they receive insurance rates with cheaper contributions and best terms.

Only the leisure activities can lead to a higher risk, e.g. Horse riding. A student insurance is useful if the contract has identical insurance conditions such as adult rates.

You should make sure that the child disability insurance at work start can be converted without a new health examination and adapted to the higher protection requirements.

When will a disability pension be paid??

As a rule, one condition is that the previous activity can be exercised to less than half. In addition, the disability must last for at least six months. The exact modalities are included in the contract terms of insurance.

Some companies pay from the notification of incapacity to work, others pay retroactively from the occurrence of the insured event (up to three years). We therefore recommend a careful comparison of the conditions.

What does the renunciation of the abstract reference mean??

In contrast to the statutory reduced earning capacity, the BU tariffs normally include the renunciation of the abstract reference. In this case, an insurer can not refer the insured person to another activity if the last job performed can no longer be exercised. Otherwise, e.g. a commercial clerk is referred to a less qualified job that may still be exercised.

Nevertheless, you should consider the exact wording of the referral clause before concluding a contract. Often, the referral right is waived in the so-called initial examination. However, when reviewing a BU after two to three years, when health improvements can occur, many occupational disability rates include the option of abstract referral. Then the insurer can request a review and make the referral after a short time.

It is to be distinguished from the "concrete reference". This means that a referral is only possible if the insured person specifically carries out another employment that corresponds to his current position in life.

What does the classification into risk groups mean?

Insurance companies classify the applicants in risk groups. A higher occupational group means a higher probability of the occurrence of the insured event and leads to a higher insurance contribution. Here is an example of the division of professions:

  • 1 ++: extremely low B occupational disability risk, e.g. Business consultant, independent pediatrician, graduate engineer
  • 1+: very low occupational disability risk, e.g. Business Administration student, lawyer, graduate economist
  • 1: low occupational disability risk, e.g. Hotel expert, office clerk
  • 2+: normal occupational disability risk, e.g. Graphic artist, pharmaceutical agent
  • 2: slightly increased occupational disability risk, e.g. Gardener, teacher, electronics technician
  • 3+: increased occupational disability risk, e.g. Pipeline builder, pediatric nurse, electrician
  • 3: greatly increased occupational disability risk, e.g. Baker, construction worker

What is the forecast period in occupational disability insurance?

The terms and conditions govern the conditions under which a disability pension is paid. One of the prerequisites is that the doctor make a prognosis about the probable period of disability.

High-performance insurance rates stipulate that a forecast period of six months must be fulfilled in order for the insurance company’s liability to commence. The policyholder can not exercise his job for health reasons for the next six months or longer.

Unfavorable formulations in the conditions of insurance provide that policyholders "permanently unable" must be working in the last profession. According to prevailing opinion, this means a forecast period of three years. Hardly a doctor, however, will attest to an occupational disability for such a long period in the case of back pain or mental suffering.

What is an exclusion clause??

In the occupational disability insurance, each applicant must provide health information. Depending on the nature and severity of the health complaints, the insurer may impose exclusion clauses. The illness is then excluded from the insurance cover in the event of benefit.

What is a dread disease insurance?

The term Dread Disease comes from the Anglo-Saxon language area and literally means as much as "dreaded disease". A dread disease insurance pays a one-time capital benefit to the insured person if a serious illness has occurred in the insurance conditions. These include e.g. the following conditions: cancer, heart attack, stroke or loss of hearing and vision. But also age-related diseases such as Alzheimer’s, dementia or Parkinson’s can be included in the scope of insurance. However, Dread Disease policies do not contribute to mental illness.

If one of the serious illness listed in the insurance conditions is medically proven, the agreed sum insured will be paid and the contract expires. The insurance benefit is not paid as a monthly pension.

This dread disease insurance can also be an effective alternative for those who for various reasons no longer get any other insurance. The advanced age, pre-existing conditions or special occupational risks can quickly lead to exclusions in other types of insurance.

What happens when you change your occupation??

With good rates nothing. However, some of the terms of the insurance policy include the requirement that the insurer must be informed of a career change. A higher risk then leads to a higher premium. As a rule, the last job performed is always insured.

What happens if I do not become disabled??

Self-employed occupational disability insurance is generally considered to be pure risk insurance designed. At the end of the contract is no credit available for withdrawal.

What to do if the insurance application was rejected?

Previous illnesses, risky hobbies or dangerous occupations can lead to a rejection of the application. But you should not be discouraged. Because every provider judges differently. The acceptance policy for BU insurance companies could hardly be more different. What leads to a rejection of one company can be insured against another contribution surcharge.

But beware: Anyone who has already submitted an application that has been rejected has been saved in the information and information file (HIS) of the insurance industry. This entry will make it difficult to stay with other insurance providers.

Therefore, you should make an anonymous submission before applying to different providers. This will give you an idea of ​​what your chances of a successful contract are. Anyone who still does not get a contract should find out whether there are group tariffs with a simplified health check via the employer or a professional association.

Which deadline for registration is valid at the occurrence of the occupational disability?

In the insurance conditions, the registration deadline is included in the benefit claim.

As a rule, the policyholder must report an illness leading to incapacity for work to the insurance company, usually within a period of three months. In the event of late notification, the company may refuse to pay the BU pension.

What documents does the insurance company need in the case of BU??

In case of benefit, it is recommended to contact the insurance company first. As a rule, this will give you first indications as to which documents are required. In principle, policyholders receive information depending on the company within two to four weeks after submission of the documents, whether it is provided or whether further information is required.

The following documents are usually required:

  • Description of the cause of the occurrence of the insured event
  • Detailed reports from the treating physician about the cause, onset, type, course and expected duration of the illness, as well as the degree of disability
  • Documents about the occupation of the insured person, their position and activity at the time of the occurrence of the occupational disability and the changes that have occurred
  • In the case of occupational disability due to long-term care, a certificate from the person or body entrusted with the care and the type and extent of care

Which doctor can determine the occupational disability?

Basically, you can visit your family doctor. The doctor must prepare a medical certificate containing detailed statements on cause, onset, type, course and expected duration, occupational disability or level of care.

If the insurance company has doubts about the medical report, it may demand that another doctor be consulted. Either the insurance company names a specialist in the area or a physician body makes a decision. This consists of a doctor of the insurer, a doctor of your choice and an independent expert. The cost of the appraisals is borne by the insurance company.

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