When are you disabled?
When you conclude a contract, make sure when you are deemed unfit to work under the contract. Most of the contracts have an unfitness to work if the policyholder can not pursue his or her profession for at least six months for reasons of health, such as illness, bodily injury or the loss of power.
If the contract contains the addition that after six months' continuous incapacity for work, the continuation of this condition is deemed to be incapacitated for work, the payment is then made retrospectively for the first six months. Attention: Some insurances, however, only recognize the disability after three years.
What do you have to do in case of disability?
In the case of an incapacity for work, you must show exactly what is the cause of your disability. In addition, you must specify in detail how your professional activity at the time of the incapacity to work and how much you earned.
Finally, you must also submit medical information, such as the cause, the beginning, the nature, the course and the expected duration, the degree of disability or the extent of the need for care. Ensure that you are free to choose the physician who certifies your disability, and that you do not have to undergo certain curative treatments in the event of an incapacity for work.
Degree of disability
Depending on the contract, there is a difference between the degree of incapacity for work and a pension. There are three models for which you can choose between contracts: On the first model, no pension is paid up to a degree of 49 per cent, from 50 per cent, there is the full pension.
In the second model, there is nothing to a degree of disability of 33 percent, then graded up to 66 percent, there is a partial pension, over the full pension. In the third model, there are 25 percent nothing, then graded up 75 percent of a partial pension, over the full pension. Not every insurance company offers every model, some insurance companies can also offer different models - ask for it. When nothing special has been agreed, the insurer shall use the 50 percent rule.
If you have agreed an 50 percent rule, but your doctor only attests you a degree of occupational disability of 45%, that is unfavorable for you. With the other two models, you would have been better off because you would have received at least a partial pension here.
However, if the doctor certifies that you have an 55% disability, you will receive a full pension on the 50 percent model, but only a partial pension on the staggered models
Why your pre-existing conditions are important
When you take out occupational disability insurance, it is more important to know which medical history your medical history is. Because in order to determine the contributions and conditions for the entire contract period, each insurance company also checks the health risks beforehand.
Then, based on your health characteristics and disease history, you will be assigned to a community with an equally assessed risk profile. To do this, you must answer a series of health questions in writing in the five to ten years prior to the application.
Be sure to give all your previous medical conditions!
If there are any health problems, such as allergies or cardiovascular disorders, you will usually have to provide more details on an additional questionnaire about the type, severity and duration of the complaints. You should also prescribe minor diseases, if they are documented anywhere. If you provide false information, the insurer may refuse payment in the event of a disability.
The insurance company can also check your details with your doctor, because you must grant her the right to do so with a declaration of confidentiality. If you want to combine a particularly high disability pension, you should expect the insurance company to have a thorough examination by the family doctor - but it also comes for the costs.
Exclusion of certain pre-existing diseases
When many or difficult pre-existing conditions exist, many require Company a risk premium in the form of higher contributions. It is possible that the health impairment is too substantial to offset this with a premium supplement. In some cases, applicants are also unwilling to pay an increased premium.
Then previous illnesses and / or consequences of an accident can be excluded from the contract. For example, you have a herniated disc. It is then agreed that diseases of the spine as well as all causally related consequences of the benefit claim are excluded. The insurance does not pay if the disability occurs for this reason.
But: Exclusion of certain pre-existing conditions is always the worst alternative: If you become unfit for work, it can happen that your occupational disability is linked to the excluded previous illness. Better to get offers from other insurance companies.
What should you consider when it comes to costs?
Before you qualify for non-compulsory disability insurance: Be aware that a disability insurance is a risk reduction that only pays in the event of a claim. You usually do not get your posts again. There are, however, also insurances with disbursement of profits if no disability has occurred. This variant is somewhat more expensive. In addition, surpluses (such as equity funds) are usually not guaranteed.
And you should also note that: Insurance against disability is considered a private expense. So you cannot deduct the costs as a business expense from the tax, because the risk lies mainly in the private sphere. You can only consider this provision as other provision expenditure in the tax return - up to a maximum of EUR 1500 per year. In total, only 2.400 euros can be claimed as pension expenses annually. How high your contributions to occupational disability insurance depend on various factors (and of course on the insurance company).
The following factors also affect the price:
Amount of the desired pension
The amount of the pension that is to be paid in case of disability will determine the amount of your contributions. The more pension you receive, the higher your contributions will be.
This is also important: the younger you are when you take out an insurance policy, the lower is usually your contributions - on the one hand, because you deposit longer, on the other hand, because you usually also have fewer pre-existing conditions ).
- Service and insurance
- Your job
Price of an occupational disability insurance: Depending on the benefit duration
Also, the age at which the disability benefit is paid (maximum duration) is a factor in the amount of your contributions: the longer the disability insurance pays, the more you pay.
In contrast to this, you can agree separately on the duration of insurance, ie the age at which the insured event occurs, in the case of many contracts. For most insurance companies, the maximum insurance or benefit age is 65 or 67 - the age at which you normally retire. And you should also agree on this period.
Attention: The following examples are not binding! They are merely intended to illustrate the extent to which the contribution levels depend on the various factors. The numerous insurance conditions, which are explained below, also play a role in the calculation of premiums. Especially cheap offers often also contain disadvantageous conditions. So look carefully!
Calculation example 1
If you take out an 29 Euro Disability Insurance Plan for 1.000 Euro Monthly with a benefit and insurance period up to 65 years that meets all the important conditions (see below), you can get them for 53,62 Euro a month.
Calculation example 2
For a life-long period of service (incapacity to work until the 66 year, but the insurance pays for a lifetime), you would have to pay 110,33 Euro per month.
Calculation example 3
If you take 40 years of occupational disability insurance, which only runs until the 5 year (benefit and insurance period), and the monthly pension payment is 2.000 Euro, you pay 95,17 Euro per month. With a term of up to 62 years already 307,22 Euro would be due in the month.
Curiosities: insurance liability for rejected BU?
Anyone who thinks that he can later hold an insurance company that has refused an application for occupational disability insurance, if the occupational disability actually occurs, is wrong.
Stuttgart Higher Regional Court has ruled that an insurance company that had previously refused insurance against disability would not be required to pay damages later. One of the reasons for this is that there is no obligation to contract for the insurance company.
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