Disability Insurance for Expats in Germany

Key Takeaways

• BU replaces income when work capacity drops 50%+ for at least six months.
• Employer pay covers the first six weeks; sick-pay follows from health plans.
• Private policies can extend payments long term, often to retirement age.
• Costs depend on age, occupation, and chosen benefit level.
• Insurancy offers neutral, digital help to compare options and understand terms.
• Real claim examples illustrate how benefits work during recovery or career change.

Guide overview: what expats need to know now

If you fall sick or get injured, multiple layers of support can kick in—know which ones apply and when.

Quick path: your employer usually pays full salary for the first six weeks. After that, public or private health insurance may provide limited sick pay. Separate private protection can step in to replace income for the long term.

Insurers typically use a 50% loss of occupational capacity for at least six months as the claim trigger. That rule matters because it defines who qualifies and when benefits start.

• Coverage options vary by benefit amount, waiting period, and benefit duration to match budgets and goals.
• Insurers assess job role, medical history, and lifestyle when pricing and approving applications.
• Mental health and musculoskeletal problems are common claim causes to consider when choosing cover.

Practical next steps: gather payslips, job description, and medical records. Compare policy terms—especially the waiting period and benefit duration—so you can move from research to a confident application.

“Understanding where short-term sick pay ends and long-term protection begins is the key to avoiding income gaps.”

What “Berufsunfähigkeitsversicherung” is and how it protects your income

This type of cover pays a monthly benefit while you are alive but medically unable to work in your own role. It replaces part of your wages when a medical condition reduces your ability to perform your trained job by roughly 50% or more for a sustained period, typically six months.

Definition in the German context

Core test: medical evidence must show at least a 50% loss of occupational capacity for six months. Policies often state whether they use an “own-occupation” standard or a broader test that requires inability to do other work as well.

How BU differs from life insurance

Life plans pay a lump sum after death to support loved ones. By contrast, BU pays ongoing monthly benefits while you recover or adapt to limits caused by an illness or injury.

• Own-occupation wording can make claims easier for specialists. For example, a surgeon who loses fine motor skills may qualify even if they could perform other roles.
• Benefits focus on income replacement, not investment growth. The goal is to cover living costs and aid rehabilitation.

How disability insurance works alongside employer sick pay and health insurance

Knowing how employer pay, statutory sick pay, and private cover link up helps you avoid gaps during recovery.

Employer pay for the first six weeks

Your employer normally continues full salary for the first six weeks after illness or injury. This immediate support gives time to begin treatment and file any necessary medical documentation.

Public or private health insurance sick pay up to 78 weeks

After six weeks, statutory sick pay from health insurance typically steps in. Public health insurance pays about 70% of salary, capped at €120.75 per day, and can continue for up to 78 weeks for the same condition.

Where long‑term cover fits

Long-term private policies begin after a chosen waiting period and can bridge the gap once statutory sick pay ends. Many plans continue benefits until a set retirement age, providing steady monthly income while you recover or adapt.

Covering ongoing health insurance premiums during prolonged absence

Some private plans include options to pay ongoing health insurance premiums if you cannot work long term. That feature can keep your public or private health insurance active without creating financial strain.

• Timing matters: 6 weeks employer pay → up to 78 weeks statutory sick pay → private long-term benefits.
• Choose benefit start dates to coordinate with sick pay timelines and monthly expenses.
• Collect clear medical reports and employer statements to support claims over months of review.

Disability insurance for expats in Germany

Germany’s safety net mixes compulsory programs with voluntary top-ups—know how they fit together.

Why internationals should consider BU

Health insurance is mandatory for residents staying longer than three months, and that determines sick-pay mechanics. Statutory and private health routes affect how long employer or plan pay continues.

Still, a separate occupational protection policy is optional. It is often recommended because it replaces income if a serious condition limits your ability to do your job. That extra layer can matter when family or rent depends on steady pay.

Compulsory vs. optional: where this cover fits

Some protections are required while others are smart extras. Knowing which is which helps you prioritize limited budget and cover gaps quickly.

• Compulsory: health cover (public or private); motor cover if you drive.
• Strongly recommended but optional: personal liability, household contents, legal, private accident, and occupational protection policies.
• Employer accident schemes handle work incidents; private accident plans fill non-work gaps.

Employment type, probation status, and move timing affect when you can apply and how soon cover starts. Consider adding private protection early—it often acts as a stabilizer while you adapt to local systems and may preserve financial security if your job or residency changes.

Who typically needs BU coverage

If others count on your wages, a sudden stop to income can change everything fast. Use that simple test to see whether a policy should be part of your financial plan.

Primary earners and families often top the list. If you pay rent, support children, or contribute most household bills, a loss of pay can hit daily life and future plans.

High‑risk occupations and caregivers also merit close attention. Jobs with heavy physical work, irregular shifts, or high stress raise the chance of long absences. Caregivers who support a partner, parents, or children have added responsibility if earnings stop.

• Primary earners: protect rent, utilities, childcare, and tuition.
• Families with children: keep schools, routines, and healthcare stable.
• Physically demanding jobs: higher exposure to injury and long recovery.
• Caregivers: depend on steady pay to support loved ones during a health event.

Even office workers face risks. Mental health and musculoskeletal conditions cause many lengthy absences. A neutral review of your budget, job risks, and household obligations can show if a policy fits your needs.

“Protection can pay a monthly benefit while you recover, helping you focus on health and, if needed, retraining.”

What BU usually covers—and common claim scenarios

Many payouts begin when a health issue gradually prevents you from meeting essential work duties. Policies aim to replace lost pay once a condition has lasted long enough and cut your capacity by roughly half. This section explains typical causes and how benefits usually apply.

Mental health and burnout

Mental conditions such as burnout or depression are a frequent reason people are unable work due long term. Modern contracts often include these illnesses, but definitions and waiting periods vary.

Chronic back pain and musculoskeletal conditions

Chronic back pain, repetitive strain, and joint problems commonly stop people from doing physical tasks. Jobs that require long hours standing, lifting, or repetitive motion face the highest risk.

Cancer and serious illnesses

Cancer treatment phases can make regular work due illness unrealistic. Benefits typically cover the treatment and recovery months when you cannot maintain normal duties.

Partial vs. total disability situations

Policies usually pay partial benefits if you work fewer hours or in a reduced role, and full benefit when you meet the threshold for total loss of core tasks.

• An example: a gastronomy worker with chronic back pain who can no longer lift heavy trays may claim a benefit while retraining.
• Most claims need medical documentation showing impairment for at least six months and a ≥50% loss of job capacity.
• Check contract wording on mental health and any specific exclusions or add‑ons before you commit.

“The goal is clear: stabilize income during treatment and rehabilitation so you can focus on recovery or retraining.”

What’s not covered and typical limitations

Policies list exclusions that affect claims. Common conditions that existed before you applied may be excluded if not disclosed. That makes honest health details essential at application time.

Many contracts bar payments for self‑inflicted injuries or attempts to claim before the six‑month, ≥50% threshold is met. Some plans add special rules or longer waiting periods for mental health issues, so read that wording closely.

• Definitions matter: an “any‑occupation” test is harder to meet than “own‑occupation.”
• Non‑medical events—like job loss or performance issues—are not covered.
• This protection is separate from personal liability: damage to other people’s things or bodily damage is handled by liability cover.

Carefully reading conditions and clarifications helps you know what is and is not covered before you rely on the plan.

When benefits are paid: qualifying criteria and definitions

Benefit eligibility rests on measurable limits to your work capacity over a sustained time. Clear medical records and objective reports are the basis of any claim. Below are the concrete thresholds and terms you should compare when reading a contract.

At least 50% loss of capacity for 6 months

Core threshold: most claims require medical evidence showing a ≥50% reduction in your ability to do core duties for a continuous period of 6 months. Documentation from treating physicians and detailed job descriptions make this assessment explicit.

Own‑occupation vs. any‑occupation clauses

An own‑occupation policy pays if you cannot perform your specific profession. An any‑occupation test asks whether you could reasonably do other work of similar training or pay. This difference affects claim outcomes and long‑term planning.

Benefit period: to a set age or retirement

Benefit terms are chosen when you buy cover and often run to a set retirement age (commonly 65 or 67). Contracts may allow periodic reviews and partial payments if you return part‑time or in an adjusted role.

• Insurers focus on how medical conditions affect essential tasks, not job title alone.
• Read definitions closely—how “illness” and “injury” are defined changes results.
• Compare medical evidence requirements to avoid surprises at claim time.

“Understanding where short‑term sick pay ends and long‑term protection begins is the key to avoiding income gaps.”

How much does BU cost in Germany

Cost is not fixed — small changes to benefit level, waiting period, or term can alter the monthly price. Typical premiums run roughly 1%–3% of gross salary. That gives a quick rule: a €3,000 monthly salary often maps to €30–€90 per month as a basic range.

Practical examples: younger adults may pay around €50 monthly for moderate cover. Older applicants or those with higher‑risk jobs often see €100–€150+ per month.

What influences the premium

• Age: older entry age increases cost because claim probability rises.
• Job class: physical or hazardous roles attract higher rates than desk jobs.
• Benefit amount and term: larger monthly payouts and longer durations (e.g., to age 67) raise the premium.
• Waiting period: choosing a longer delay before benefits start usually lowers the monthly cost.
• Health history, body metrics, and lifestyle habits also affect underwriting decisions.
• Some company group arrangements may give better access or simpler medical checks, but individual policies remain common.

Expect premiums around 1%–3% of salary and balance affordability against the income protection amount you need.

How much coverage to choose

Begin by mapping out the costs you’d still face if you could not work. List fixed monthly outgoings first: rent or mortgage, utilities, food, loan payments and essential childcare or schooling costs.

Income replacement targets: a common baseline is to target about 60% of your net income. This level often covers essentials while reflecting savings from reduced commuting or work expenses.

Calculating needs

Work through actual monthly expenses and mark what would drop if you stopped working. Subtract expected reductions and add any other income sources.

• Include stable salary components; only count bonuses if a provider accepts them.
• Factor in your partner’s earnings and whether they can adjust hours.
• Families with children should keep a buffer for housing, schooling, and health costs.

Setting start date and duration

Match the benefit start to when statutory sick pay ends so cash flow stays smooth. Pick a duration that fits your long‑term plan — many people choose cover until planned retirement age.

Getting covered: application and underwriting steps

A smooth application depends on accurate job descriptions and honest health details. Start by collecting personal ID, recent payslips, and a clear description of daily duties. Underwriters assess tasks you perform, not just your title.

Health questions typically ask about medical history, medications, height, and weight. Answer fully — omissions can delay claims or void benefits later. If you have treatment records from abroad, check whether translations are needed.

Selecting benefit amount and waiting period

Decide how much monthly income you need and set a waiting period that lines up with employer sick pay and health insurance timelines. A longer wait lowers premiums but increases your short-term risk.

Comparing quotes beyond price

Compare contract type wording (own‑occupation vs any‑occupation), mental health terms, exclusions, and indexation options. Small price differences can hide large differences in claim outcomes.

• Check company group options — company schemes may offer simpler underwriting.
• Keep copies of every form and medical report you submit to speed review and future claims.

“Quality of cover matters more than the cheapest monthly rate when income protection is the goal.”

Policy features to compare before you buy

Not all contracts are equal. Read wording to spot limits that affect real payouts. Focus on mental health clauses, indexing, future-insurability, and referral rules.

Mental health coverage and exclusions

Review mental-health wording carefully. Some plans cap benefits, add extra waiting periods, or require specialist reports for burnout or depression.

Indexation, benefit increases and future insurability

Indexation links the insured amount to inflation, keeping long-term protection useful. Future-insurability options let you raise cover after life events without new medical checks.

Abstract vs. concrete referral clauses

Abstract referral can cut payments if you could theoretically do another role. Concrete referral usually needs an actual, reasonable job offer before benefits change.

• Check partial-disability formulas and how part-time work affects payments.
• Compare exclusions and special clauses against your health conditions and occupation.
• Prefer clear, plain-language contracts to avoid surprises at claim time.

“A well-worded policy protects income; a vague one risks gaps when you need it most.”

Real‑life examples that illustrate BU in practice

Real cases help show how monthly benefits actually bridge gaps when health knocks you off course. Below are three anonymized examples from Germany that highlight timing, documentation, and how income support fits with other pay.

Chronic back pain leading to a career change

A hospitality worker develops persistent back pain after years of long hours on their feet. They become unable work due to lifting limits and standing for shifts.

After medical reports show impairment lasting six months, benefits start. Monthly payments cover rent and training costs while they retrain for a less physical job.

Cancer treatment and a temporary exit from work

An office employee is treated for cancer, requiring surgery and therapy that force an extended break. Statutory sick pay covers early months.

When the condition reduces work capacity beyond the policy threshold and the period requirement is met, monthly support begins. Payments help with living costs while they recover and return gradually.

Burnout and long‑term inability to work

A start‑up professional working excessive hours develops severe burnout and becomes unable work due to cognitive and emotional limits. Therapy is long term.

With sustained medical evidence, benefits provide steady income while treatment continues. This cushion reduces pressure to return too soon and supports a sustainable plan.

“Documented medical evidence and clear job duty descriptions are central to successful claims, especially when symptoms vary over time.”

• Key points: benefits usually start after the six‑month, ≥50% threshold and coordinate with statutory sick pay.
• Insurers may reassess if partial work returns; payments adjust to current capacity.
• These examples show how monthly support preserves stability during treatment, rehab, or career change.

How Insurancy supports expats with independent advice

Insurancy helps internationals cut through complex rules with clear, actionable steps. Our team provides neutral, digital guidance that explains how health insurance and long-term protection interact with employer benefits.

Digital, transparent guidance

Fast, remote support is built around plain English explanations, English-language consultations, and an online process that fits busy lives. We show the trade-offs between price and quality so you compare real value.

Coordinating BU with public or private health insurance

We map statutory sick-pay timelines and private health insurance rules to the chosen benefit start date. That helps avoid gaps and confirms whether a plan can cover ongoing health contributions.

• Independent advice: unbiased reviews of policy wording and exclusions.
• Practical alignment: match start dates with employer pay and public health timelines.
• Ongoing help: reviews after relocations, job changes, or status updates.

“Clear information and neutral guidance let you choose cover that fits your life, not the sale.”

Conclusion

A clear plan helps protect your regular income when illness or injury reduces your ability to work.

Timing matters: employer pay covers the first six weeks, statutory sick-pay can follow for up to 78 weeks, and private policies can extend income replacement to a chosen age once a ≥50% loss of capacity lasts six months.

Choose an amount that covers essentials—many aim for about 60% of net salary—and check own‑occupation wording, mental‑health terms, indexation, and exclusions before you buy. Life cover answers a different event; this protection supports you while living and recovering.

Independent, digital advice can align timelines, cross‑border medical records, and coverage options. If you suspect you may be unable work due to health, get clear, fact‑based guidance to compare options and set a plan that fits your needs.

FAQ

What is Berufsunfähigkeitsversicherung (BU) and how does it protect my income?

BU is a policy that pays a monthly benefit if you can no longer do your job because of illness or injury. It replaces a portion of your salary to cover living costs, mortgage, and family needs until a set age, often retirement. This helps protect savings and loved ones when you can’t work.

How does BU differ from life or critical illness cover?

Life cover pays a lump sum on death. Critical illness policies pay on specific diagnoses. BU pays regular income when you lose work capacity, even if you survive the illness. It focuses on ongoing earning ability rather than a single event.

What happens during the first six weeks after sickness at work?

Employers usually continue paying full salary for the first six weeks (continued pay). That initial period reduces immediate financial pressure while you apply for statutory sick pay or claim on a private policy if needed.

How long does statutory sick pay cover income?

Public or private statutory sick pay (Krankengeld) can pay up to about 78 weeks for the same illness. It typically replaces a portion of income and may not match your full salary, so BU can bridge the gap for long-term needs.

Where does BU fit with employer sick pay and statutory health benefits?

BU is long-term income protection. Employer pay covers short-term absence; statutory sickness benefits cover medium-term gaps. BU steps in when you can’t work long term and statutory benefits stop or aren’t enough.

Will BU pay my ongoing health insurance premiums if I become unable to work?

Some policies include a waiver that continues premium payments or offers a built-in contribution to health cover. Check policy terms—this feature varies and is important to maintain public or private medical protection.

Why should internationals consider BU while living and working here?

Expatriates often face higher financial risks from income loss and may lack strong local family support. BU tailored to your situation ensures continuity of income, protects mortgage and family, and complements public or private health systems.

Is BU compulsory or optional alongside other coverages?

BU is generally optional. Employer liability and statutory health schemes cover some needs, but BU is a voluntary, individual contract that fills long-term income gaps not covered by public systems or employer benefits.

Who typically needs BU coverage?

Primary earners, parents, homeowners with mortgages, high‑risk professionals, and caregivers benefit most. Anyone whose household would suffer financially if they lost the ability to work should consider coverage.

Does occupation affect eligibility and price?

Yes. High‑risk jobs such as construction or some healthcare roles attract higher premiums and stricter underwriting. Insurers rate applicants by occupational class, which directly influences cost and terms.

What conditions does BU commonly cover?

Policies often cover long‑term mental health issues, burnout, chronic back or musculoskeletal problems, cancer, and other serious illnesses that prevent you from performing your job. Exact coverage depends on policy wording.

How do partial and total disability claims differ?

Total claims pay when you can no longer perform your job to a defined degree. Partial claims, where you can work but at reduced capacity, may pay a proportionate benefit if the contract includes partial disability cover.

What exclusions and limitations should I expect?

Typical exclusions include pre‑existing conditions not declared during application, self‑inflicted injury, and certain risky activities. Waiting periods, benefit caps, and exclusions for specific mental‑health treatments are common—read terms carefully.

What qualifying criteria trigger benefit payments?

Many contracts require at least a 50% loss of work capacity for a continuous period (often six months) before benefits begin. Definitions vary by policy, so confirm how incapacity is measured.

What is the difference between own‑occupation and any‑occupation clauses?

Own‑occupation pays if you cannot do your specific job. Any‑occupation pays only if you cannot perform any suitable job given your education and experience. Own‑occupation offers stronger protection but costs more.

For how long are benefits usually paid?

Benefit periods vary: some policies pay until a set age (e.g., 65), others for a fixed number of years. Choose a duration that matches your retirement planning and financial obligations.

How much does BU typically cost?

Premiums depend on age, occupational class, benefit amount, waiting period, and term. Younger applicants in low‑risk jobs pay less. Medical history and smoking status also affect price. Request multiple quotes to compare.

How do I choose the right benefit amount?

Aim to replace around 60% of net income as a baseline, then adjust for mortgage, dependents, and other income sources. Factor in reduced expenses and statutory benefits to avoid overbuying.

What waiting period should I select before benefits start?

Waiting periods (Elimination periods) commonly range from three to twelve months. Shorter waits increase premiums but provide quicker cash flow. Balance your emergency savings and employer sick pay when choosing.

What information is needed when applying?

Insurers request personal details, job description, income, lifestyle (smoking, sports), and medical history. Honest, complete answers prevent later claim denials.

How can I compare policies beyond price?

Compare definitions of incapacity, benefit triggers (own vs any occupation), exclusion lists, indexation options, mental‑health cover, and waiver of premium features. Service reputation and claim handling matter a great deal.

What policy features should I prioritize?

Prioritize own‑occupation wording, mental‑health coverage, indexation or inflation protection, future insurability options, and a clear exclusion list. These features determine real-world value more than the headline premium.

What are abstract vs. concrete referral clauses?

Concrete clauses base incapacity on your specific job tasks. Abstract clauses assess whether you can do any comparable work given your skills. Concrete wording is generally more claimant‑friendly.

Can you give real examples of how BU pays out?

A software developer with chronic back pain may claim when they cannot sit for long and must change careers. A marketing manager undergoing cancer treatment may receive temporary benefits during recovery. In burnout cases, long-term payments can support rehabilitation and living costs.

How can Insurancy or a broker help internationals?

A specialist broker provides digital, transparent advice tailored to expatriates, helps coordinate BU with public or private health cover, explains cross‑border implications, and compares policies from major German providers to find the best fit.

Will my BU policy remain valid if I move countries?

That depends on the policy. Some contracts allow worldwide cover; others restrict residence to Germany or the EU. Check geographic limits and notify your insurer of any long-term moves.

How soon should I apply for BU?

Apply while healthy and early in your career. Younger applicants pay lower premiums and face fewer medical issues that could trigger exclusions or loading at underwriting.

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