Occupational disability insurance (BU) in Germany

BU can be particularly relevant for Indian expats in Germany who depend on their salary and do not have significant savings or other income to fall back on. Whether it makes sense depends on your profession, income, health and personal circumstances. We help you assess whether BU is a good fit before recommending it.

The statutory Erwerbsminderungsrente generally requires at least five years of contributions to the German pension system before you qualify, along with other contribution requirements. If you have not yet met these, you may have limited or no access to statutory disability benefits. Exceptions can apply in certain situations, so it is worth checking your individual circumstances.

The statutory Erwerbsminderungsrente generally pays only if you can no longer work in virtually any job — not just your own profession. Private BU insurance is based on your insured occupation and the specific policy conditions, which typically offer broader protection. The exact terms depend on the policy you choose.

Health insurance covers eligible medical costs such as treatment, medication and hospital stays. BU insurance provides an agreed monthly pension if you meet the policy definition of occupational disability and can no longer work in your insured profession. They protect different risks and are typically held alongside each other.

Payment depends on meeting the policy definition of occupational disability, which commonly requires being unable to perform your insured occupation to at least 50% for an expected minimum period of six months. A medical certificate alone does not automatically trigger payment — the insurer will assess the claim against the policy conditions. We support you through this process if you ever need to claim.

The right monthly BU pension depends on your income, essential living expenses and financial obligations in Germany. Around 70–80% of your net income is often used as an orientation, but your individual situation — including any existing savings or other income sources — should determine the final amount. We help you find a figure that gives you meaningful protection without overinsuring.

The premium depends on your age, profession, health history, the monthly pension amount you want, the policy duration and the insurer. Profession and health are particularly significant factors — two people of the same age can face very different premiums. We compare suitable options for your specific profile.

Pre-existing conditions can lead to normal acceptance, premium surcharges, exclusions for specific conditions, or in some cases rejection, depending on the insurer. Where appropriate, NEOdirect can approach insurers with an anonymous health pre-check before submitting a formal application, so you can understand your options without affecting your insurance record.

Mental health conditions such as depression and burnout can generally be covered if the policy conditions are met — they are among the most common causes of occupational disability in Germany. Existing or previous mental health conditions may affect underwriting, for example through exclusions or surcharges. We help you understand how your health history may be assessed before you apply.

Many BU policies offer options to increase cover without new health questions (Nachversicherungsgarantie), for example after a salary increase, marriage, having children or buying a home. Some policies also include an annual dynamic increase to help keep pace with inflation. The options available depend on the specific policy, which is one reason the policy terms matter at the point of application.

Many BU policies can continue when you move abroad, but the exact conditions — such as whether cover continues worldwide or only within the EU — depend on the insurer and policy. NEOdirect checks portability conditions when recommending cover for expats, so that your policy remains useful if your plans change.