🛡️ Income Protection Insurance
Secure your income – even if you can’t work anymore.
Why Income Protection Matters
Imagine this: You get seriously ill or injured and can’t work for a long time – or even permanently. What happens to your income?
In Germany, there’s no strong government support if you lose your ability to work. This is especially true for professionals on work permits, Blue Card holders, and freelancers. The risk is real – and the financial impact can be huge.
That’s why we recommend Income Protection Insurance – known in Germany as Berufsunfähigkeitsversicherung.
✅ What It Covers
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💰 Monthly income replacement if you can’t work due to illness or accident
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🧠 Covers both physical and mental health issues (e.g. burnout, depression)
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🏥 Covers conditions like cancer, heart disease, slipped disc, or long-term injuries
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⚖️ Tax-optimized premium options available
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📈 Option to increase your insured amount later – without a new health check
🔍 How It Works
You choose the monthly income you want to protect (e.g. €2,000–€3,000 per month).
If a doctor confirms that you’re unable to work in your current profession for more than 6 months, the insurance pays you this amount – until retirement if necessary.
👨👩👧👦 Who Should Consider It?
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Highly skilled professionals (IT, engineers, medical staff, researchers)
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Young employees – the earlier you start, the cheaper and easier it is
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Self-employed & freelancers
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Anyone relying on their income to support family, loans, or future goals
🇩🇪 German Reality – Be Aware
Germany has no general disability pension for most foreign professionals.
And: Statutory support may only give you €800–€1,000/month (or nothing if you don’t qualify).
That’s not enough to live on – especially if you support a family or have long-term plans in Germany.
💡 Why NEOdirect?
At NEOdirect, we explain this complex topic in simple English and make sure:
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You understand exactly what’s covered (and what’s not)
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You get the best value for your budget – independent comparison of top German providers
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We help with claims, paperwork, and strategy – free of charge
📞 Ready to protect your income?
Book a free consultation with one of our experts.
We’ll assess your situation and guide you step by step – no obligations, no pressure.
NEED
It makes sense to take care of occupational disability insurance at an early stage. If you are young and healthy, you will receive good protection at the best conditions.
PRE-EXISTING CONDITIONS
Health questions must be answered completely and truthfully. Do not hesitate to state illnesses that you basically consider insignificant. Incorrect or incomplete information may release the insurer from its obligation to pay benefits.
RUN TIME
Don't let the contract end too early, even if this seems cheaper. A term agreement up to your retirement age - for salaried employees up to the age of 67 - is highly advisable to avoid payment gaps.
RENT HEIGHT
Calculate your needs taking into account other income to which you are entitled. It is advisable to pay attention to a subsequent insurance guarantee, so that you can increase your pension later without a health check.
How You Should Take Out Occupational Disability Insurance?
Statistics show that every fifth person in gainful employment becomes occupationally incapacitated before the start of their old-age pension. In the skilled trades sector, even every fourth person becomes occupationally incapacitated. Since the occupational disability pension has been replaced by the reduced earning capacity pension for all those born after 1961, there is a particular need here. By the possibility of being referred to another occupation, any activity of the general job market must be accepted. The legal reduction in earning capacity pension is so small that it does not cover even the basic needs of a working person. This supply gap developed in such a way should close each responsible working person.
Who Should Take Out Occupational Disability Insurance?
Generally, every working person should consider private insurance for occupational disability as an absolute must because the benefits from the statutory disability pension in the event of a reduction in earning capacity for securing existence will not be nearly enough. Insurance against occupational disability needs, especially for workers, employees, artisans, apprentices, and young professionals.
Most self-employed and freelancers have no right to the statutory pension for reduced earning capacity. Also, homemakers, pupils, and students should be covered more. However, occupational disability insurance is indispensable. The same applies to civil servants, who should take out additional cover, as the benefit in the event of incapacity to work has also been significantly reduced.
What Can Steel Be Expected From The Statutory Pension Insurance Today?
For those born after 1961, the occupational disability pension model has been replaced by the reduced earning capacity pension: you will only receive the full reduced earning capacity pension (approx. 34% of your last gross income) if you can work less than 3 hours a day. If you can work 3-6 hours daily, you can only expect half of the reduced earning capacity pension (approximately 17% of the last gross income).
Any benefit is waived if the employee is on duty for more than 6 hours since the learned profession is not considered, and the pure ability to work in any possible gainful activity counts. Suppose you were born before January 2, 1961.
In that case, you will be slightly better off and receive half the reduced earning capacity pension even if you cannot work more than six hours daily in your learned or a comparable profession.
How Much Should Your Occupational Disability Pension Pay Per Month?
The optimal amount of the occupational disability pension depends on your personal needs. However, you should cover at least one-third of your current net salary, and 60% to 80% would be optimal.
When calculating the amount, you should consider the following factors taken into account payments from occupational pension plans or rental and interest income, because the lower you can calculate your pension amount.
The occupational disability pension should always be high enough to make it possible to pay pension contributions in an emergency. It is also possible to agree on waiving gifts to your pension plan in the event of occupational disability.
What Should You Pay Attending To During Your Health Check?
The questions about health must always be answered completely and truthfully in order not to jeopardize the existing insurance coverage.
The insurance companies often ask about doctor's visits in the last five years.In the event of a hospital stay, the last ten years are queried.
Particularly in the event of a claim, the insurance company reserves the right to check your details in detail. This is done by releasing the attending physician from the duty of confidentiality.In addition to the health questions, precise information about your hobby and profession is also required.
If your profession changes during the contract period or you start a risky hobby, this does not have to be reported.
What is Occupational Disability Insurance?
Occupational disability insurance is a type of coverage that pays you money if you can't work due to a disability. It replaces part of your income, helping with expenses. There's a waiting period before it kicks in, and it pays out for a set time or until you can work again. You pay regular premiums for this financial safety net.