Occupational Disability Insurance in Germany
Understand BU, the cover it can provide and the terms that matter — explained in English.
What occupational disability insurance covers
Berufsunfähigkeitsversicherung, usually shortened to BU, is private occupational disability insurance. It can pay an agreed monthly benefit when health problems prevent you from carrying out your occupation under the policy’s conditions.
The starting point is the occupation you last actually performed and how you performed it, rather than simply the profession you originally trained for. Contract terms govern the required degree and duration of disability and any assessment of another occupation. See § 172 VVG.
A claim is not established just by losing half your income. Your duties, medical evidence and the wording of the contract need to be assessed together.
BU and the statutory disability pension are different
Erwerbsminderungsrente assesses capacity for work on the general labour market. The basic medical thresholds are below three hours a day for full reduced earning capacity and three to under six hours for partial reduced earning capacity. Other conditions and exceptions also matter.
Eligibility generally requires the qualifying period and sufficient recent compulsory contributions. Voluntary payments alone do not automatically satisfy those requirements. Self-employed people should have their actual insurance record checked instead of assuming either that they have no entitlement or that voluntary contributions guarantee it.
Use your pension information and advice from Deutsche Rentenversicherung to establish your own position. An average payment is not a personal entitlement. Source: § 43 SGB VI.
What would an interruption to work mean for you?
Consider essential spending, dependants, loan payments, existing benefits and savings. Illness as well as injury can affect your ability to work. A population statistic cannot establish your individual risk or the amount of cover you need.
Employer pay, statutory sick pay and private sickness allowance have different roles. Read our guide to sick pay vs disability insurance in Germany to understand how these benefits can affect your income during illness.
Prognosis, payment and contract duration
A prognosis period describes how long the impairment is expected to last under the policy definition. A contractual deferment period (Karenzzeit) delays payment where it has been agreed. These are different concepts.
Do not assume that every BU policy requires a six-month wait before payment. Check the actual prognosis wording, any retroactive payment provisions, any agreed deferment and the reporting requirements.
The insurer’s claim assessment also takes time; it is not itself a contractual Karenzzeit. An agreed deferment needs to fit the resources available to cover that period.
How long would benefits continue?
Check the insured benefit term and the conditions for reassessment or termination. Recovery, another job and retirement can raise different contractual questions. Neither starting another job nor drawing an old-age pension should be treated as an automatic universal rule for all policies.
Choose the benefit and compare quotations
Start with your monthly needs and reliable existing provision. Include the cost of continuing retirement saving and consider changes in purchasing power. The insurer may limit the amount available relative to your financial circumstances.
Premium comparisons should use the same monthly benefit, insurance term, benefit term and policy features. Occupation, age, health information and the insurer’s assessment affect the offer.
Check the difference between the contractual premium and any lower current payment resulting from surplus participation. A quoted payment should not be described as unchangeable for life. Illustrative price tables cannot replace a current quotation.
Prepare the health information carefully
Read the exact questions and relevant time periods. Discuss how to obtain the information needed before making an application. If a preliminary risk inquiry is appropriate, clarify what information is shared, with whom and under what process; do not assume it leaves no records.
Tax treatment and civil-service cover
Tax treatment depends on the contractual arrangement. For a time-limited standalone BU annuity, the taxable earnings portion takes account of the limited payment term; it should not be explained solely by the claimant’s age. A BU benefit linked to Basisrente can follow different rules. Individual tax consequences should be checked with a tax adviser. See § 55 EStDV.
For civil servants, Dienstunfähigkeit clauses require a separate reading of the contract. The clause, employment status and benefit conditions determine how an official finding is treated. Such a finding does not guarantee payment under every policy.
Questions about BU
Is BU the same as accident insurance?
How much monthly cover should I choose?
Can an expat apply?
Should I send health records through this form?
Discuss your questions with Sven
English-speaking advice is available in Berlin and online throughout Germany. Advice is free. For insurance arranged through Sven, insurers pay commission; insurance premiums and product costs still apply.
Contact Sven Chalupa
+49 151 463 695 56
s_chalupa@taures.de
Meetings in Berlin by arrangement. Online consultations throughout Germany.
Please use the form for a general enquiry. Do not include medical records, identity documents or account details.
By Sven Chalupa. Content reviewed: 29 September 2026. General information; your individual circumstances and the applicable contract require separate assessment.