- On 23.07.2021
Can you imagine that something unforeseen happens in your life and you are no longer healthy enough to work? The occupational disability insurance helps when everything else goes south.
Being too sick to work is certainly a topic you don’t like to deal with – but it is even more important! Every 5th employee and every 3rd worker in Germany becomes incapacitated for work before retirement age. So unfortunately, pushing the issue aside and saying “it won’t happen to me” is not an option! Or can you look into the future? 😉
But what are the reasons for occupational disability? The main reason is by far our psyche, mental illnesses (such as burn-out or depression) and nervous disorders. In the following chart you will find all causes with their frequency relevance.
Why statutory coverage is not sufficient!
There is no (longer a) statutory occupational disability insurance. If you were born before 1961, you have a claim to an occupational disability pension. Those born after this date are only entitled to a so-called reduced earning capacity pension – if at all.
Good to know: In 2020, about 42 % of applications for a statutory reduced earning capacity pension were rejected.
Whether you are entitled to a reduced earning capacity pension is judged on the basis of your possible performance in any occupation and NOT on the performance in your own occupation. Means: If you are able to work more than 6 hours per day in any profession, you will not get any financial support from the state! If you are no longer able to do so, it will be checked how many hours a day you are able to work:
If you can still work between 3 and 6 hours a day, you can get a half EMR (= Erwerbsminderungsrente or statutory reduced earning capacity pension). This corresponds to about 17 % of your previous gross. If you can work less than 3 hours a day, you can get a full EMR. This corresponds to about 34 % of your previous gross. However, many applications for an EMR are not approved at all. As you can see, the benefits from the state are by far not enough to maintain your standard of living – apart from the fact that you probably have enough other problems.
A private occupational disability insurance is absolutely necessary!
But you don’t have to rely on the state. You can take your life into your own hands and ensure that you are well covered in the case of need and don’t have to worry about financial worries – instead, you can concentrate fully on your health!
A private occupational disability insurance evaluates your performance in your profession and your previous position in life is taken into account. This means that you can NOT be referred to other professions* and if you are at least 50 % unable to work in your old profession you will receive the insured benefit from the insurer until the expiry of the insurance period (mostly retirement age) or recovery!
Thus, you have the possibility to secure your working power.
The worth of your working power
Have you ever thought about how much your working power is worth? On average we work for 40 years in our life. Multiply that by your annual income and you have your personal value of labor. An example: You earn 40,000 € per year x 40 working years equals a labor force of 1,600,000 €!
You don’t want to leave that to chance, do you?
The occupational disability insurance is one of the most important insurances you should have – it protects your (financial) existence!
Best to you
Your Team FrauFUTURE
P.S.: In addition to the occupational disability insurance, there is also basic disability insurance and “dread disease” insurance for income protection. We will also report on this in the future. If you can’t wait, feel free to contact us beforehand. 😉
*Attention: Depending on the insurance, an abstract or concrete referability to other professions is possible. However, this must at least correspond to the previous activity, knowledge and skills as well as position in life. But some insurers (and most of those we work with) exclude this altogether anyways, which means you can’t be referred to another profession.
Photo by Neil Thomas on Unsplash