Your greatest asset is not your car or your savings account – it is your ability to work. Over a working life this easily adds up to one or two million euros of income. If that ability disappears, it becomes existential. This is where occupational disability insurance (Berufsunfähigkeitsversicherung, BU) comes in. The basics are explained in Occupational disability: the basics. Here the question is: why not wait?

The state barely steps in

The statutory reduced-earning-capacity pension (Erwerbsminderungsrente) is the only safety net, and it hangs low (§ 43 SGB VI):

  • Full pension only if you can work less than three hours a day – in any job, not in yours.
  • Half pension for three to under six hours.
  • Nothing at six hours or more. Occupational protection only remains for people born before 2 January 1961.
  • Requirements: at least five years insured and 36 months of compulsory contributions in the last five years.

Newly granted pensions averaged around €1,070 per month in 2025 (German Pension Insurance, annual report 2025), after health and long-term care contributions. That covers the bare minimum at best.

Who is affected, and by what

Actuaries (Deutsche Aktuarvereinigung) estimate that about one in four people becomes occupationally disabled during their working life – roughly 26 % of 30-year-old women and 24 % of men. The most common cause is no longer accidents but mental illness at around 36 % of all cases, followed by musculoskeletal disorders (about 18 %) and cancer (about 17 %); accidents account for only about 7 % (analysis by a rating agency 2025). An accident policy is therefore no substitute.

Why starting early is decisive

  • Entry-age logic: the premium is calculated once at your entry age and stays at that level for the whole term. Starting at 25 means paying the 25-year-old’s premium for 40 years; starting at 40 means paying the much higher 40-year-old’s premium for 27 years. Every year of waiting makes cover shorter and more expensive per month.
  • Health: the healthier you are, the more likely you are accepted without exclusions or surcharges. A diagnosis in tomorrow’s file can make cover expensive or impossible.

Health questions must be answered truthfully (§ 19 VVG) – see Your rights when taking out insurance.

What matters in the tariff

  • No abstract referral to another occupation.
  • A sufficient monthly benefit – a common rule of thumb is 70–80 % of net income; your own expense sheet shows what you really need.
  • Fair guaranteed increase options without a new health check.
  • Benefits from 50 % disability with a six-month prognosis period.

How to proceed

  1. Calculate your need: fixed costs plus living expenses.
  2. Obtain your medical records before applying.
  3. Use an anonymous pre-enquiry if you have pre-existing conditions.
  4. Compare conditions, not just premiums.

General information, not legal, tax or investment advice. Sources: § 43 SGB VI, § 19 VVG, German Pension Insurance (annual report 2025), German Actuarial Association and GDV consumer portal (analysis by a rating agency 2025), Finanztip, Stiftung Warentest – as of October 2026. Disability cover is most valuable while you don’t yet need it. Get in touch.