Does German disability insurance pay for mental illness?

What a BU costs without pre-existing conditions, and the sums at stake in a mental health claim. Loadings after therapy are set by each insurer.

A BU does not distinguish between physical and mental causes. Section 172 of the German Insurance Contract Act (VVG) speaks of illness, injury or loss of strength, and depression is an illness. All that counts is whether you can no longer do your last job to at least 50 percent.

The figures show why this matters. About one in three BU claims now has a mental cause, more than back and joints or cancer. Anyone who buys only cover for physical risks, such as basic abilities insurance (Grundfähigkeitsversicherung), leaves exactly this biggest gap open.

A broken leg shows on an X ray. With depression, the doctor has to describe what you can no longer do: concentrate, keep appointments, cope with clients, make decisions. The insurer wants reports from psychiatrists or psychotherapists, hospital discharge letters and a course over months. A GP note that just says burnout rarely does.

Your job description matters just as much. Write down what a typical working day looked like before you fell ill, with hours and shares. Only then can you show that more than half of the tasks no longer work. If your therapist works in English, ask for reports that the insurer can use, or arrange a certified translation.

Mental illness comes in phases. While paying, the insurer may review whether you are still disabled. If you recover so far that you can again do more than half of your job, the benefit can end. That is part of every contract, not a trick.

Good terms help: a gradual return to work without the benefit stopping at once, and a clear rule for renewed disability. Ask about both before you sign.

If you declare therapy or a depressive episode, you often get an offer with an exclusion. The BU then pays nothing for any mental cause, the most common one. Sometimes such a contract still makes sense because it covers everything else, but you should know what you are buying.

Check how far the exclusion reaches. A narrow exclusion for one diagnosis is far better than one for all mental illness. Some insurers review an exclusion after several symptom free years on request. Ask for that in writing.

Many people leave out therapy for fear of rejection. That is the most expensive mistake. If the insurer finds a missing treatment at claim time, it can rescind within five years under section 21 (3) VVG, within ten years for intent or fraud. With mental illness, the medical file is always read closely.

Treatment abroad counts too, and it is not in your German health insurer's records, so list it yourself. Request the diagnoses stored by your German health insurer first; that is free under Article 15 GDPR. Ask your therapist to confirm the treatment has ended. Then we send an anonymous pre-enquiry to several insurers. Therapy older than the period asked about need not be declared.

If you are in treatment right now, you will usually not get a BU, even with an exclusion. It is often wiser to finish therapy and apply later than to take a poor contract now. Never postpone treatment because of insurance. Your health comes first.

As a bridge, disability cover limited to any occupation (Erwerbsunfähigkeitsversicherung) or a policy with simplified health questions can help. Both are weaker than a BU. Basic abilities insurance hardly protects against mental illness, because abilities like walking or seeing remain intact.