What is disability insurance?

Disability insurance replaces part of your income if illness or injury stops you from working. In Germany it is called Berufsunfähigkeitsversicherung (BU) and pays a monthly benefit, usually 75 to 80 percent of your prior net income, for as long as you cannot do your own job. It is private insurance you buy separately from statutory health insurance.

What is disability insurance called in German?

Disability insurance is called Berufsunfähigkeitsversicherung, abbreviated as BU. It protects your income if you can no longer perform your current job due to illness or injury. The word breaks down as Beruf (profession) + Unfähigkeit (inability) + Versicherung (insurance).

How much disability insurance coverage do I need?

Your benefit should cover 75 to 80 percent of your current net income. If you earn 3,000 net per month, aim for at least 2,250 to 2,400 monthly coverage. Include the future increase option so you can raise it later without new health checks.

Can I get disability insurance with pre-existing conditions?

Yes, in many cases. Common conditions like allergies, back pain, or mild depression do not always lead to rejection. Insurers may add a surcharge or exclude that specific condition. Use an anonymous risk inquiry (anonyme Risikovoranfrage) to check multiple providers without affecting your insurance record.

When should I get disability insurance?

As early as possible. Premiums at age 25 can be half of what you pay at 35. You are also less likely to have health conditions that complicate the application. Students and trainees in Germany can already apply for BU coverage.

Is disability insurance tax-deductible in Germany?

BU premiums are partially tax-deductible as Vorsorgeaufwendungen (pension expenses). The exact deduction depends on your total social insurance contributions. In practice, employees can often deduct a portion of their BU premiums. Consult a tax advisor for your specific situation.

What happens if I leave Germany?

Most BU policies remain valid if you move abroad, though some have geographic limitations. Check your contract for any Auslandsklausel (foreign residency clause). If you plan to leave Germany eventually, confirm this before signing.

Income Protection in Germany

Disability Insurance in Germany 2026

Disability insurance (Berufsunfähigkeitsversicherung, BU) pays you a monthly income if illness or injury stops you doing your own job. Not any job. Your job. According to the GDV insurance association, around 25 percent of people become unable to work in their profession at least once during their working life.

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Key Takeaways

CheckAlle Redaktion · Last reviewed: 18 August 2026

BU pays out when you can no longer do your own profession, not when you cannot do any work at all. That distinction is the whole point of the product.
The Verbraucherzentrale calls 80 percent of your current net income a good benchmark for the monthly benefit.
Stiftung Warentest compared 56 BU tariffs in May 2026 and rated 42 of them very good.
Born after 1 January 1961? German statutory insurance no longer offers an occupational disability pension at all.

Professional reviewing disability insurance options in Germany

If you work in Germany, about one in four people will face a disability before reaching retirement age. That number comes from the German Insurance Association (GDV), and it catches most expats off guard.

The statutory system, Erwerbsminderungsrente, pays a fraction of your former income, often less than a third. For many people, that is not enough to cover rent, let alone everything else.

Disability insurance (German: Berufsunfähigkeitsversicherung, or BU for short) fills that gap. It pays a monthly benefit if illness or injury keeps you from doing your job. Unlike the government system, a private BU policy does not ask whether you could theoretically work a different job. It protects the specific job you actually do.

How disability insurance works in Germany

A BU policy pays you a monthly pension (BU-Rente) when you can no longer perform at least 50% of your current job duties. The cause can be anything: a back injury, depression, cancer, a car accident.

No referral clause

Insurer cannot tell you to switch careers. This is the most important contract feature.

Coverage until 67

Your policy should cover you until statutory retirement age, not just five or ten years.

Future increase option

Raise coverage later without another health assessment, for example after a salary increase.

Premium waiver on claim

If you become disabled, you stop paying premiums but keep full coverage.

The benefit amount should replace roughly 75 to 80 percent of your net income. Anything less leaves a gap that compounds over years.

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What does disability insurance cost?

There is no honest single answer, and you should be suspicious of any page that gives you one. German insurers price BU individually. Your job, your age when you sign, your health history, the monthly benefit you pick and the length of the contract all feed into the quote. Two people on the same salary can end up paying very different amounts.

What you can work out before you ever see a price is how much cover you actually need. That number is the one that matters.

How much cover do you need?

1. Start with your net income. Use what actually reaches your account each month.
2. Subtract what stops. Savings payments, commuting and other work related costs disappear if you cannot work.
3. Set your target. The Verbraucherzentrale calls 80 percent of your current net income a good benchmark. Tax and health insurance still come out of the benefit later.
4. Be realistic about the state. The Verbraucherzentrale notes that the statutory disability pension pays, on average, below the German basic income support level. It is not a safety net you can plan around.
5. The gap is your number. Whatever sits between your target and the statutory benefit is what your policy has to carry.

One detail that catches people out: if you were born after 1 January 1961, German statutory pension insurance only offers a reduced earning capacity pension (Erwerbsminderungsrente). There is no state occupational disability pension for these birth years. Private BU cover is the only route.

Government benefits vs private BU insurance

Many people assume the German government will cover them. The statutory system (Erwerbsminderungsrente) requires at least five years of pension contributions, with three of those in the last five years before the disability. The Verbraucherzentrale notes that this statutory pension pays, on average, below the German basic income support level.

The government also checks whether you can do any job for at least six hours a day, not whether you can do your actual profession. An architect who develops chronic pain might be told they could work a desk job somewhere.

For expats who have not been in the German system for five years: you may not qualify for any government disability benefits at all. Private BU insurance becomes your only safety net.

Applying as an expat or foreigner

Health questions

Every BU application includes detailed health questions covering the last five to ten years. Answer honestly. Insurers can void your entire policy years later if they find you left something out. Medical records from your home country count too.

Pre-existing conditions

Having a condition does not automatically mean rejection. Many insurers offer coverage with a risk surcharge (Risikozuschlag) or specific exclusion. An anonymous risk inquiry lets you check multiple insurers without leaving a trace in your insurance record.

Language and residence

The application and contract will be in German. If your German is not strong enough to understand the health questions, get help from a bilingual broker or a trusted friend. Most insurers also require a valid residence permit and some ask for a minimum employment period in Germany.

Who needs disability insurance most?

Employees

Even with employer sick pay for six weeks, you face a steep income drop. Krankengeld covers about 70% of gross for up to 78 weeks, then stops.

Freelancers

No employer safety net at all. If you stop working, income stops immediately. BU is your only income protection.

Parents

Your family depends on your income. A disability without coverage puts everyone at risk.

If you are looking at other types of coverage, check liability insurance for expats or accident insurance in Germany. Both protect against different risks but work alongside BU insurance.

Frequently asked questions

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Your ability to earn income is your most valuable financial asset. Protecting it does not have to be complicated, especially if you start early.

Takes about 2 minutes. No commitment required.

Looking up Berufsunfähigkeitsversicherung in English?

Most of what you find about BU is written in German, which is awkward when the contract you are about to sign runs for thirty years. Here is the vocabulary that actually turns up in the paperwork.

Berufsunfähigkeitsversicherung (BU): Occupational disability insurance. Pays a monthly benefit when you can no longer work in your own profession.
Verweisungsverzicht: A clause where the insurer gives up the right to point you towards a different job it considers reasonable. This is an industry term rather than a legal definition, and the wording differs between contracts, so read yours.
Nachversicherungsgarantie: The right to raise your cover later without a new health check, usually tied to events like marriage, a child or a pay rise.
Gesundheitsprüfung: The health questionnaire at application. Answer it accurately. Under § 19 VVG, incorrect answers can cost you the payout later.
Erwerbsminderungsrente: The statutory reduced earning capacity pension. Assessed on whether you can do any work at all, not your own profession.

Independent sources

Stiftung Warentest: BU comparison of 19 May 2026, 56 tariffs tested, 42 rated very good.
Verbraucherzentrale: consumer guidance on how much cover to take.
GDV: statistics on what actually causes occupational disability.
Deutsche Rentenversicherung: rules for the statutory reduced earning capacity pension.

More about financial protection in Germany

Disability insurance is one piece of a broader financial safety net. If you are also considering other financial products in Germany, you might find these comparisons useful:

Personal loans in Germany for short-term financial needs
Insurance comparison for expats covering all major insurance types
Life insurance comparison for family protection beyond disability
Health insurance comparison for expats in Germany