30.11.2017

Einer für alle? Nicht jeder BU Tarif gilt auch für alle Berufsgruppen

Specialist comment on disability insurance for lawyers and notaries

Whenever contracts cover abstract topics, the fine print is crucial in case of cases. Especially when it comes to occupational disability insurance, small phrasing can decide whether the financial security in the case of loss of workforce really takes effect. Lawyers may perhaps best understand insurance conditions, but at the same time they are often not so aware of the importance of the „fine print“ in their own right. Arno Schubach, a lawyer from Frankfurt am Main, shows in the lawyer’s bulletin of November the critical points that may be relevant for lawyers in securing their disability.

But in turn. In this blog post, you will find out which solutions exist specifically for this professional group in order to guarantee reliable security. Choosing the right fare is the deciding factor here.

Trip hazards in the condition works

An important part of an insurance policy are the terms of the contract – also called conditioners. They contain the basics of insurance. At Hoesch & Partner we make it our task to question the scope of individual clauses intensively for our customers and, in case of doubt, to analyze them on a case-by-case basis.

Together with my colleague Alexander Kukovic, I create scenarios on the basis of which we advise our clients on all eventualities so that they can save themselves the annoying study of paragraphs.

In conversation with lawyers, I have often found myself in conversations in which conditional works were discussed down to the ground, discussed and questioned. It is usually easy for the lawyer to read and understand a bundle of insurance documents.

Why the conditional work must fit the professional group

To make sure that we provide the best coverage for every professional group, we also seek the exchange with specialist lawyers for insurance law. Again and again, interesting jurisdictions come to light, which make life easier for the customer in the long term and give us clarity as a professional consultant.

But it still applies that not all conditional works do not fit every profession.

What needs to be considered in disability insurance for lawyers

Undoubtedly, occupational disability insurance is one of the most important insurance policies for lawyers. That is why there are many things to consider when choosing the right tariff:

1) If the colleague comes in: reorganization clauses and rules for reference in the conditions

In the case of occupational disability, there is a chance that you might otherwise be active. For example, a lawyer suffering from a fatigue syndrome could severely reduce his activity and hire a second lawyer from his law firm to take over his clients. Thus, the lawyer, according to the statute of the pension fund of the lawyers in the state of Hesse would not be incapacitated.

To obtain benefits, the attorney must be incapacitated for illness, physical harm or weakness of his physical or mental powers (…) for at least 6 months (…) AND cease his professional activity as a lawyer or as a lawyer and notary! (Source: Versorgungswerk der Rechtsanwälte im Hesse – Corporation of Public Law S urticator – 2 0 1 8 – §16, para. 2 – Link to the Download of the Articles of Association: https://www.vw-ra-hessen.de/Rechtsgrundlagen .html )

This is equivalent to an official submission of the approval.

Here, then, the „all or nothing principle“ you as a lawyer must be 100 percent disabled to receive the BU pension.

All or nothing: Does limited further work destroy the chance of protection?

First all-clear: In the terms of a private disability insurance, you will receive a BU pension if you are at least 50 percent unfit for work – you can read more about the details in my blog from 15 December 2016 .

Commentary: Among the concerns of Arno Schubach, lawyer
Schubach calls in the field of private occupational disability insurance , two essential problems, which I think is extremely questionable – 1. Problem: referral and 2nd Problem: reorganization of the self-employed.

There are solutions to both problems.

Solution to Issue 1: Some rates exclude a referral

For some rates, it is explicitly stated that there are no referral rights that could prevent recognition of your BU. Here’s an example:

§ 12 Can you be referenced for another job when joining the BU? No, in the initial appraisal of your BU, it does not matter if you could, due to your existing skills and knowledge or because of your education and experience, practice another profession (abstract referral) or already practice such another profession (concrete referral). (Source: Conditioner HDI, Tariff EGO Top Stand 2017)

Solution to Problem 2: Chambered professions protected against reorganization

The conditional work of the HDI also provides a concrete solution to this problem: In particular, we find a well-defined passage that can help lawyers in the event of a reorganization of their law practice:

„§1 Abs. 4 b We waive an examination of the reorganization in the following categories, if the company employs less than five employees:

– lawyers and patent attorneys,
– notaries,

certified
public accountants, – certified accountants, – tax consultants and tax representatives „

(Source: Conditioner HDI, Tariff EGO Top Stand 2017)

2) The amount of the hedge

In order to be able to calculate the exact supply gap, we recommend lawyers or even notaries to disclose their claims to us.

Typically, a typical customer insures 70-80 percent of his net income so that full income remains available in the worst case. And that includes the purchase of the statutory disability pension (http://www.finanztip.de/berufsunfaehigkeitsversicherung/erwerbsmindernungsrente/) and any contributions to health insurance, pension insurance, etc.

Membership of the Anwälte pension plan provides for disability benefits and is thus superior to the statutory disability pension – both in terms of the conditions for obtaining benefits and the level of benefits.

3) A certain plus: tariff-specific special conditions for lawyers

Proven membership in the Bar Association gives you discounts or other benefits in many areas.

For example, there are insurers who offer you a simplified health check, grant a premium reduction or even voluntarily submit to a contracting obligation – the insurer guarantees to assure the customer, irrespective of the basic constitution in which he is.

Conclusion: find the one (tariff), where everything is right

Thus, I recommend – especially lawyers – with a consultant to discuss all individually possible scenarios in order to jointly find the appropriate tariff.

According to the motto „Where no plaintiff, there is no judge“, we do everything we can to ensure that nothing comes to that.

Sincerely

Your Niels Sanders

 

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