Private occupational disability insurance

The benefits at Hoesch & Partner

Overview of the entire range of providers in the area of private disability insurances

Anonymous inquiries in advance in order to determine the personal risk of an occupational disability

Review of providers regarding the price as well as the legal certainty of the disability insurance

Independent price/performance recommendation

Combined products including pension or term life insurance cover

“The nicest house, the greatest car or the best pension scheme are useless without a monthly income that pays for everything. Otherwise everything else collapses as well.”

Christian Blum
Manager Private Clients

Why is a private disability insurance necessary?

Since the government has withdrawn from the responsibility to ensure this protection, statutory pension-insured people can hardly expect any benefits in case of occupational disability. For example, people who were born after the 1st of January 1961 are not covered for occupational disability at all. They solely receive a so-called reduction in earning capacity pension. This pension however only applies if the policyholder is no longer able to exercise any kind of occupation. Yet the actual professional qualifications are not taken into consideration in this case. Thus, for example, a baker who is allergic to flour does not receive any support by the government (and neither by his employer or health insurance) as he is not considered ill. In this case, the private disability insurance jumps in.

Occupational disability is a widely underestimated risk. Statistically, every fourth employee in Germany becomes incapacitated in the course of his working life. An employee with a monthly gross income of 4,000 € earns 1.44 million € (excluding raises) during his 30 years of working life. This makes the ability to work the most valuable asset of every employee. This asset must therefore be protected.

Benefits of the private occupational disability insurance

Financial security through monthly payments of the occupational disability insurance

The coverage includes occupational disability caused by accidents as well as chronic illnesses (e.g. psychological illnesses, musculo-skeletal illnesses, cancer, etc.)

Higher monthly pension than in case of statutory security (statutory benefits are in most cases below Hartz IV-level)

Suitable for all age groups

Coverage of the occupational disability insurance

 

The rates of the different providers of occupational disability insurances vary significantly regarding the coverage. Currently, insurance companies such as HDI, Alte Leipziger and Volkswohlbund are among the top providers. They guarantee benefits in case of illness, injury and loss of strength and additionally compensate retrospectively. Furthermore, good occupational disability insurances should include the following services:

Waiver of obligation to cooperate: The insured person is not obliged to follow his or her doctor’s instructions in order to receive benefits. In this regard the focus lies on the reasonableness of the doctor’s instructions.

Additional insurance cover: In case of marriage, birth of a child or adoption. the occupational disability pension can, up to a certain amount, be increased without an additional health check.

Waiver of abstract referral: Compensation is also guaranteed if the insured person is still able to exercise a different kind of occupation.

Shortened period of prognosis: Instead of the usual clause, which states that the insured person must be “presumably permanently incapable” to exercise his or her occupation, the period of prognosis to verify the occupational disability is shortened to six months.

We will advise you free of charge and without obligation

Please contact us should you have any questions. We look forward to hearing from you!

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Who is an occupational disability insurance suitable for?

Generally, a private occupational disability insurance is suitable for everyone.  The principle that applies is: The earlier, respectively the younger you are when concluding the insurance contract, the cheaper it is. The starting age and exercised profession are the crucial criteria for the calculation of the premiums.

An occupational disability insurance is especially sensible for young professionals. Since the amount of the reduction in earning capacity pension is based on previously acquired pension points and general waiting periods, young professionals do not receive any benefits within the first five years.

At Hoesch & Partner,we offer special occupational disability insurances for young professionals and academics as well as the service to upgrade already existing insurance policies. After checking your existing policy thoroughly, we adjust the coverage according to your current situation and optimize it. This ensures that you permanently have the best coverage possible.

Exemplary real-life cases

AgeIllnessOccupationLevel of DisabilityCompensation
23Bone CancerIT Systems Trainee

 50

 16.595.,96€

36SquintPilot10028.848,10€
40DepressionAttorney7039.265,91€
46

Tuberculosis/

locomotives disorder

 

Self Employed Metal Worker

10024.545,02€
57StrokeDentist10048.958,61€

We will advise you free of charge and without obligation

Please contact us should you have any questions. We look forward to hearing from you!

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FAQ's

The occupational disability insurance pays a previously determined monthly annuity to the insured person if he or she cannot exercise his or her profession anymore or less than 50% of the usual working hours.

The amount of the annuity can generally be determined freely, however must not exceed the monthly net income as the rule against unjustified enrichment also applies for occupational disability insurances.

The occupational disability insurance can either be conducted as an independent contract or in combination with a carrier insurance.

 

 

 

The coverage of the statutory pension scheme in case of occupational disability is hardly sufficient anymore.

Everybody born after January the 1st 1961 does not receive an occupational disability insurance anyway, only a reduction in earning capacity pension. However, compensation is only paid if the insured person is no longer able to exercise any occupation at all. The amount of the compensation is based on the previously acquired pension points.

Young professionals, who have just started their career, therefore receive no or only very little compensation.

Thus, an additional private insurance coverage is absolutely necessary.

The definition of the term occupational disability is much broader of the private insurance companies. Moreover, the professional qualification is taken into consideration.

Gross and net premium are only calculated in case of autonomous occupational disability insurance policies without carrier insurances.

Since the occupational disability insurance belongs to the category of life insurances, the insurance companies are obliged to forward a large proportion of the surpluses to the policyholders. Generally the surpluses are used to decrease the premiums.

The gross premium then equals the actual premium and the net premium is reduced by the surpluses.

When comparing insurance policies the net premium should therefore not be the only figure taken into consideration, but also the gross premium since this can be the amount that has to be paid in case the insurance company does not realize surpluses anymore.

This question cannot be answered in a general context. The individual situation of the insured person is essential.

We at Hoesch & Partner are happy to provide advice in all areas regarding occupational disability insurances and offer individual quotes, which are customized according to your actual need for insurance coverage.

There are special concepts for the different phases of life. Young professionals and graduates need a different coverage than someone who has already been working in his profession for many years.

The premium is calculated based on different factors. Crucial factors are the starting age and the exercised profession. Roofers have to pay a higher premium whereas people working in administrative office jobs are comparatively cheap. Apart from that the amount of the premium also depends on the chosen coverage of compensation.



Generally there is no upper limit to the amount of monthly occupational disability pension. The amount however has to be economically adequate. The definition of adequate is determined by every insurance company itself which is why there are large differences between the conditions of the various insurance companies.

Some consider this to be 70% of the gross income, others draw the line at 75% of the net income and some insurance companies make use of totally different calculations.

We at Hoesch & Partner are happy to assist you in choosing the policy and coverage that is right for you. Just contact us.

The occupational disability insurance is in most cases a pure risk insurance and there is no payment at the end of the term of the contract. However, if the surpluses that are generated during the term are not used in order to reduce the premium, these can be paid at the end of the term. Generally the surplus payments are not enough to cover the paid premiums.

If you prefer to get the premiums repaid at the end of the term, you have to choose a policy with a carrier insurance and for example pay additional premiums into a life insurance. But this also means that the total coverage will become more expensive.



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