Occupational disability insurance — Why it is so important

Disability insurance is one of the most important forms of insurance that every worker should consider. In a world of work that is becoming increasingly unpredictable, a sudden loss of ability to work can have dramatic financial consequences. In this blog article, you will learn everything you need to know about disability insurance, its necessity and what you should consider when taking out a contract.

What is disability insurance?

Definition and differentiation of disability insurance

Disability insurance protects income when someone is no longer able to do their job for health reasons. It is not to be confused with disability insurance, which applies when someone is unable to work at all, regardless of their professional qualifications. Disability insurance therefore offers higher protection, as it pays even when the insured person is no longer able to work in the profession they have learned or most recently practiced.

The legal basis and framework

Occupational disability insurance is based on legal requirements that specify when and under what circumstances a benefit obligation exists. The contract conditions usually define exactly under which health conditions entitlement to the insurance pension occurs. A doctor must attest to the occupational disability, and the restriction must probably last for at least six months.

Why is disability insurance important?

Statistics on occupational disability in Germany

The statistics speak for themselves: One in four employees in Germany becomes unable to work in the course of their life. The reasons for this are not only accidents, but in many cases mental illnesses, chronic illnesses or serious physical illnesses. Disability can therefore affect anyone, regardless of career and lifestyle.

Common causes of disability

The most common reasons for occupational disability are mental illnesses such as depression and burnout, followed by skeletal and musculoskeletal disorders. Cardiovascular diseases, cancer and accidents also play a role. While physically demanding occupations used to be particularly affected, today the number of occupational disabilities is also increasing in office jobs due to psychological stress.

Financial consequences for those affected and their families

The financial impact of an occupational disability is significant. Without occupational disability insurance, income is lost, which means the loss of financial security for many households. Statutory coverage is inadequate in most cases, as it only provides minimal basic care. Private disability insurance can secure living standards here and alleviate financial worries in an already difficult life situation.

Who should take out occupational disability insurance?

Professional groups at increased risk

In principle, occupational disability insurance makes sense for all workers, but there are occupational groups that are particularly vulnerable. Craftsmen, construction workers and other physically working people are more likely to become unable to work due to their high risk of accidents and wear and tear. However, occupations with high psychological stress, such as teachers or nurses, are also severely affected.

Age groups and the importance of an early degree

It is worthwhile to take out occupational disability insurance early on, ideally at a young age. The reason: The younger and healthier you are, the cheaper the contributions are. In addition, subsequent health risks that could make the conclusion more difficult or expensive can be ruled out. An early conclusion not only ensures favourable conditions, but also comprehensive protection.

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