“If I can’t work any more, the state will pay.” Only partly. See also Occupational disability: why now.
What does “occupationally disabled” mean?
A person is occupationally disabled (berufsunfähig) if, because of illness, injury or loss of strength, they can no longer practise their last occupation, presumably permanently (§ 172 VVG). Policy conditions usually specify at least 50 % disabled, presumably for at least 6 months.
What the state pays
The statutory pension no longer protects your occupation (born 1961 or later). It only asks how many hours you can work in any job.
| Level | Condition (§ 43 SGB VI) | Amount |
|---|---|---|
| Full reduction | under 3 hours a day | full pension |
| Partial reduction | 3 to under 6 hours | half pension (§ 67 SGB VI) |
| None | 6 hours or more | nothing |
Requirements: 5 years of insurance (§ 50 SGB VI) and 36 months of compulsory contributions in the last 5 years. According to the German Pension Insurance (DRV), new reduced earning capacity pensions averaged about 1,067 euros per month in 2025 (2024: 1,041 euros).
The gap
Your net income minus the realistic state benefit – often nothing. Private occupational disability insurance (BU) closes that gap; the consumer advice centres (Verbraucherzentrale) suggest around 80 % of net income.
The terms in every offer
- Abstract referral: may the insurer refuse because you could theoretically do another job? Not with a waiver.
- Prognosis period: 6 months is the good standard; older terms demanded “permanent” or three years.
- Top-up guarantee: raise the pension at marriage, birth, house purchase or pay rise without a new health check.
- End age: ideally 67 – an earlier end age leaves a gap when the risk is highest.
Health questions
You must disclose all risk factors the insurer asks about in writing (§ 19 VVG); omissions can cost you the cover later. Request your medical records first; with pre-existing conditions use an anonymous risk enquiry.
Why people become disabled
Industry statistics from a rating agency (2026): mental illness is the most frequent cause at around 32 % (almost 40 % together with neurological conditions), followed by musculoskeletal disorders (about 18 %), cancer (about 16 %) and accidents (about 7 %).
Alternatives – neutrally
- Basic abilities insurance: pays when defined abilities are permanently lost; cheaper, but mental illness is mostly not covered.
- Total disability insurance: pays only when you can do no job at all.
- Dread disease cover: lump sum for listed illnesses only.
- BU via the employer: premiums from gross pay, tax-free up to the limits of § 3 No. 63 EStG; the later pension is taxable.
How to proceed
- Quantify the gap: net income, realistic state benefit, fixed costs.
- Compare conditions, not prices: referral waiver, 6-month prognosis, top-up guarantee, end age 67.
- Never cancel an existing contract lightly.
General information, not legal, tax or investment advice. Sources: German Insurance Contract Act (§§ 19, 172 VVG), Social Code VI (§§ 43, 50, 67 SGB VI), German Pension Insurance (annual report 2025), Income Tax Act (§ 3 No. 63 EStG), rating agency statistics (2026), consumer advice centres (01/2025, 05/2025) – as of October 2026. Get in touch to have your gap calculated.
