The benefits at Hoesch & Partner
Benefits of the private occupational disability insurance
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:
Exemplary real-life cases
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Self Employed Metal Worker
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.