The fact that occupational disability insurance is an important insurance for everyone who lives and works in Germany has meanwhile become part of the population. Not everywhere yet, but we’re working on it. Then, if you really want to make an effort to get disability insurance, there are a few mistakes that you should definitely avoid. Unfortunately, these mistakes are made by many people. And in the worst case, these mistakes when taking out disability insurance mean that the insurance company does not have to pay in the event of a claim, only pays too little or you do not get any disability insurance at all. Fortunately, this will not happen to you, as you will now learn and avoid these 5 mistakes (there are about 1,324 more mistakes you can make, but these are the worst).
1. Simply submit an application for disability insurance
“Hey, let’s just apply to Insurance XY. Let’s see what they say, okay? “
… said the insurance broker and thus opened the gates to BU hell.
That is really a stupid sentence. I’ll quickly translate this sentence so that you can understand what is actually behind it.
“We just officially submit an application for disability insurance to an insurer and we will be surprised whether they will accept you or not. If he picks you up, everything is fine. If not … yes then you are pretty much in the A ****, because such a rejection of an official application is saved in the HIS (notification and information system of the insurers) and the insurers can look into it and see that you have already been rejected . So other insurance companies will in all likelihood also reject you. This is called the BU-A **** card. “
Advance risk inquiries are a must if the state of health is not clear
You do not want that. Believe me. What you want is that your insurance person makes a so-called advance risk inquiry with (preferably some insurers) in order to get an advance vote as to whether the insurer will accept you or not. If he doesn’t, it was just a vote, not a rejection as in the example above.
Ask as many different insurers as possible
And when you have all the feedback from the insurers, then you can decide which insurer will give you the best conditions.
Conclusion: If your insurance broker drops the above sentence (although you can be shown to have various previous illnesses, etc.), then you should kindly point out to the gentleman or lady that the cooperation has just been completed.
2. Do not answer health questions correctly
The health issues when applying for disability insurance. A real mistake minefield. Health questions are asked for every disability insurance. After all, the insurer wants to know whether he is insuring someone here who is barely whistling out of the last hole or is in top shape.
Insurance companies set the rules
Yes I know. Solidarity is something else. But these are the rules of the game in the private sector. So: The insurer asks the questions about your state of health in the application for disability insurance. And you are obliged (!) To answer them truthfully. If you don’t do this, you may even be cheating on the insurer because you leave various health problems out of the picture, then in the worst case this can lead to you paying contributions for years and ultimately not receiving benefits in the event of occupational disability because you violate your so-called pre-contractual reporting obligation have. And rightly so! The insurer is really 100% right here.
Do not take health issues lightly
And even if your insurance broker says that’s not that bad and you can leave that out … NO, you can’t! Point. He or she knows very well that one or the other previous illness can lead to exclusion, risk surcharge or even rejection of an application for disability insurance. And thus in the end no coal for the intermediary. Hey colleagues, I don’t want to throw anyone in the bin here, I’m one of you. But we all know how some of our colleagues work. And then the customer has to be informed.
3. Just look at the price
We can deal with this mistake relatively quickly. Why is a Dacia cheaper than a Mercedes? Both have four wheels and drive. Why choose one and not the other?
Apart from the fact that we are still a long way from the fact that occupational disability insurance will become a status symbol in Germany, like a car, there is some truth in the comparison.
It depends on your individual situation
Yes, cheap disability insurance can also be really good and suit you perfectly. But that doesn’t have to be the case. In your individual situation and life planning, it can also be that the cheapest provider is not the most sensible for you.
Support and service in the event of a claim
And especially in the case of occupational disability insurance, the service of the insurer in the event of a claim is also important. That you are supported here and that the processes run smoothly. Price is what you pay for. Value is what you get. And if you have a good insurance guy by your side who knows their stuff, then you should listen to his or her recommendation.
4. Choose the term too short and the BU pension too low
If you are concerned about the duration of an occupational disability insurance, then there are actually two rules of thumb that are generally very good:
- Duration always up to the current retirement age (currently 67 years)
- Amount of the insured disability pension: approx. 80% of the net income
I often hear that disability insurance is only taken out up to the age of 65 or 62 so that the premium is cheaper. Yes, that looks great at first when the contribution decreases.
The lazy trick with reducing the premium by reducing the term
But why is the contribution suddenly a lot less? Because there is less insurance coverage for 2 or 5 years. In fact, the very years when the risk of occupational disability is highest are not insured. So please don’t pretend! What you can do is cancel your disability insurance at 62, 63 or whatever, if you no longer need it because you have decided that you will retire earlier or are suddenly financially free. But please do not limit yourself beforehand in terms of the duration of benefits.
The BU pension is usually chosen too low
Another mistake is made when choosing the right amount of disability pension. Important: The occupational disability insurance is not an insurance for emergencies that is intended to cover the subsistence level. We have a disability pension, basic income support and Co.
Occupational disability insurance protects your standard of living
Your private occupational disability insurance should ensure that you can maintain your standard of living when you can no longer work! It’s all about this! So that you don’t suddenly drop out socially, because a lot less money is available because you have not insured enough BU pension. A disability pension is intended to secure your current existence – no more, but above all no less! To this end, it is always advisable to agree an annual, percentage premium rate (e.g. 3%) so that inflation is balanced out.
5. Take out disability insurance without an advisor
Yes, dear reader. The point had to come now, right? Of course, you have to take out disability insurance with a consultant so that he (and I) also earn a living. I can’t really write anything else, otherwise I would question my own right to exist as an insurance broker.
The (surprising) facts
Well, here are the real facts that I think will straighten out a lot:
- Occupational disability insurance always costs the same, regardless of whether you do it online at Check24 or with the advisor you trust. Not a cent difference
- The fact that you do not save any money if you take out disability insurance yourself online, the only advantage left for you is that there is no upper limit in terms of mistakes that you can make with the “do-it-yourself” deal
- So we come to the conclusion that it makes perfect sense to take out disability insurance together with an expert who will point out possible stumbling blocks and at the end (deservedly) also receive his commission. This is also paid to a portal such as Check24. With the difference that you did most of the work here.
Sounds logical right?
Summary of the 5 mistakes in disability insurance
In summary, I think it is possible to take out very good disability insurance if you avoid the five mistakes mentioned. Now that you know them, you can get started right away and hit your trusted insurance company and make an appointment for a BU consultation.
If you are still missing a trustworthy insurance person, then you can here let’s see if there are currently online consultation appointments available :-)
And if you the most clicked video for the BU you will find this one here .