Is child disability insurance worth it in Germany?
In short
For many families in Germany child disability insurance (Kinderinvaliditätsversicherung) is worth it, because it also pays after illness: around 90 percent of severe disabilities are caused by illness and less than 1 percent by accidents. Good plans cost about EUR 107 to 421 a year in a published test. The catch is detailed health questions, so apply early.
Premiums and benefits from a published German test, with child accident insurance for comparison.
Example
Typical range
Cheapest good plan, lump sum of EUR 100,000 only
about EUR 107 a year
Test winner, EUR 1,000 monthly pension for life plus EUR 24,000 once
about EUR 275 a year
Good plans in the test, full range
about EUR 107 to 421 a year
For comparison: child accident insurance, base sum from EUR 100,000 with progression
often EUR 40 to 80 a year
Guide values from our quoting practice, based on a test published in March 2020.
No newer test figures exist, and some plans have become more expensive since.
Your premium depends on the child's age, the benefit and the plan.
Worked example
Child, EUR 1,000 monthly pension for life plus EUR 24,000
What the test winner's plan would pay over 40 years after a serious illness at age 20.
Premium
about EUR 275 a year
One off payment
EUR 24,000
Pension over 40 years
EUR 1,000 times 480 months is EUR 480,000
For comparison: lump sum only in the cheapest good plan
EUR 100,000 once
Together EUR 504,000 over 40 years, without indexation. The pension costs more but carries through a whole life; a lump sum of EUR 100,000 has to cover the costs of an entire life at once.
What child disability insurance pays
It pays if a child suffers a lasting severe impairment through illness or accident. Policies often use a degree of disability of at least 50, which is also the point at which German law speaks of severe disability (Schwerbehinderung). The pensions office assesses the degree and the insurer then pays the agreed benefit.
The benefit is a monthly pension, often for life, a one off lump sum or a mix of both. It helps with home conversions, care, therapy and a parent's lost income, exactly the costs that arise next to what the health fund pays.
Why it covers more than child accident insurance
Accident insurance asks about the cause and pays only after an accident. Child disability insurance asks about the result, the severity of the impairment. Since severe disability is mostly caused by illness, it closes the bigger gap.
In a published test from 2020, 7 of 11 policies paid after both accident and illness, 4 only after accidents and certain named illnesses. So read carefully which illnesses a plan covers before comparing it with accident cover.
Point
Child accident insurance
Child disability insurance
Pays after an accident
yes
yes, from the agreed degree
Pays after illness
no
yes, fully or only for named illnesses depending on the plan
Type of benefit
mostly a lump sum by a fixed table
pension, lump sum or both
Health questions
few or none
detailed
Premium a year
often EUR 40 to 80
about EUR 107 to 421
Health questions: timing decides
The insurer checks the child's health about as thoroughly as for disability income cover. Known illnesses and treatments must be disclosed truthfully, otherwise the claim may be refused later. Depending on the plan, mental illness can be excluded.
If there are developmental problems or a suspected illness, the insurer may decline. An existing disability or a serious congenital illness can no longer be insured. Applying a few weeks after the birth is often possible and usually cheaper than later.
What remains without this insurance
The statutory health fund (gesetzliche Krankenkasse) pays for treatment and aids under its rules. A child who cannot support themselves because of a disability even stays in free family cover with no age limit, provided the disability existed within the normal age limits.
What the health fund does not replace are the everyday follow up costs and the income a parent loses when cutting back work to provide care. That is the gap child disability insurance is meant to close.
When child disability insurance is not worth it
If an impairment has already been diagnosed, no new policy will pay for it. If the family budget only stretches to one policy, protect the parents first with term life and disability income cover, because without their income the family has nothing.
If the child is older, from about 10, disability income cover for school pupils can be the better choice, because it locks in today's health for the whole working life. And if you want to build savings for your child, keep saving and insuring apart.
Step by step
First check that the parents are protected with term life and disability income cover.
Apply while the child is healthy, ideally in the first months of life.
Check whether the plan pays for all illnesses or only for named ones.
Choose between pension, lump sum or a mix; the pension lasts longer.
Answer the health questions fully and truthfully, using the child's check up booklet (U-Heft).
Checklist
Pays after illness and accident, not just named illnesses
Trigger is a degree of disability of 50 assessed by the pensions office
Lifelong pension or a sufficiently large lump sum
Exclusions, for example for mental illness, read
Health questions answered completely
Parents' own cover already in place
Common mistakes
Treating child accident insurance as a full substitute
Waiting until a first concern is in the medical file
Leaving out earlier findings in the health questions
Insuring the child before the parents are protected
Choosing a plan that only pays for a few named illnesses without noticing
Questions and answers
Frequently asked
From what age can I take out child disability insurance?
Often a few weeks after the birth.
The earlier, the better the chance of cover without exclusions, and usually the cheaper.
What does child disability insurance cost?
Good plans cost about EUR 107 to 421 a year in a 2020 test, depending on pension or lump sum.
Does it pay for congenital conditions?
A serious congenital illness or a disability present at birth can make cover impossible.
What develops later is covered as far as the plan includes the illness.
Who assesses the disability?
Most policies link to the degree of disability assessed by the pensions office, often from 50.
Pension or lump sum?
A pension protects over a whole life,
a lump sum helps with large one off costs such as a home conversion.
Many families choose a mix.
Do I need it if I already have accident insurance?
Accident insurance only pays after accidents, the rare cause of severe disability.
