What happens to my disability insurance premiums if I never become disabled?
In short
What happens to your disability insurance premiums if you never become disabled: they are used up, like home contents cover without a burglary. A standalone BU builds no savings, so nothing comes back at the end. Profit sharing usually lowers the premium along the way. At EUR 70 a month you pay about EUR 31,000 over 37 years for cover worth up to EUR 666,000.
What a BU costs over its whole term, compared with what it protects.
Example
Typical range
Office job, age 30, EUR 1,500 benefit to age 67
about EUR 70 a month, over 37 years about EUR 31,000
IT specialist, age 35, EUR 1,500 benefit
about EUR 37 a month
Tiler, age 35, EUR 1,500 benefit
about EUR 191 a month
Surrender value of a standalone BU
usually EUR 0 or a small amount
Protected pension, EUR 1,500 over 37 years
up to EUR 666,000
As of October 2026.
Premium examples from published tariff examples,
totals simply calculated without indexation or surpluses.
How large surpluses turn out and how much more a combined policy costs are indicative values from
our quoting practice; we obtain the exact quote.
Worked example
Office worker, signed at 30, EUR 1,500 benefit to 67
The numbers if she never becomes disabled, and if it happens at 45.
Premium EUR 70 × 12 months × 37 years
about EUR 31,080
Paid back without a claim
EUR 0
Disabled at 45: EUR 1,500 × 12 × 22 years
EUR 396,000
Premiums paid until then, 15 years
about EUR 12,600
Without a claim she paid about EUR 31,000 for 37 years of income protection. Disabled at 45, the policy would have paid around thirty times her premiums to date.
Why the premiums do not come back
A standalone disability policy (selbstständige BU) works like any risk insurance: the premiums of all policyholders pay the pensions of those who become disabled. The insurer does not keep a savings account for you. If the contract ends without a claim, there is nothing left to pay out.
German insurance law grants a surrender value only for policies where payment is certain to become due, such as an endowment policy (section 169 VVG). With a BU it is not certain that it will ever pay. The model terms therefore mention a surrender value only where one exists.
What profit sharing does
Insurers calculate cautiously and pass surpluses on to policyholders (section 153 VVG). With a BU this is usually done by netting against the premium: you pay the lower payable premium (Zahlbeitrag) instead of the higher gross premium (Bruttobeitrag).
So your BU premiums were already lower during the term than they could have been. This is not guaranteed. If surpluses fall, the payable premium may rise up to the gross premium, and you should know that ceiling before you sign.
Was the BU worth it if I never claimed?
Yes, just as a seatbelt was worth wearing even if you never crashed. You handed over a risk you could not carry alone: a monthly pension of EUR 1,500 over 37 years adds up to EUR 666,000.
At EUR 70 a month you spend about EUR 31,000 over the whole term. In return, your income was protected for decades. Never becoming disabled is exactly the outcome you hoped for, it just does not feel like a win.
Type
Money back without a claim
Premium
Standalone BU
no, at most a small surrender value
cheapest for the same pension
BU as a rider to a pension or life policy
yes, from the savings part of the main policy
much higher, you pay for both parts
Standalone BU plus a separate savings plan
yes, from your own savings, independent of the cover
BU cheap, savings rate your choice
When a policy with money back makes sense
Policies with a savings part pay you something at the end, but only because you paid in more beforehand. Germany's consumer advice centres (Verbraucherzentrale) usually consider such combinations too expensive. If the main policy is cancelled or made paid up, the BU rider usually ends with it.
For most people the better route is a standalone BU plus separate investing. Then your cover stays in place even if you need to touch your savings.
Premiums during a claim and when money is tight
If you become disabled, the insurer pays the pension and also waives your premiums. Premiums you paid during the review are refunded under the model terms once the claim is accepted.
If money gets tight, do not cancel straight away. Ask about a deferral, a lower pension or making the policy paid up. Cancelling returns nothing, and a new policy later costs more and checks your health again.
Step by step
Check whether your BU is standalone or tied to a savings policy.
Compare payable and gross premium on your policy schedule.
For combined policies, work out what the savings part alone delivers.
Before cancelling, ask about deferral or a lower pension.
Sign a new BU before you change the old one.
Checklist
Standalone BU or combination identified
Gross premium noted as the ceiling
Benefit term matches your retirement age
Guaranteed increase option for later
Premium waiver during a claim included
Common mistakes
Cancelling the BU near the end because the money seems gone anyway
Choosing an expensive combined policy just to get something back
Treating the payable premium as guaranteed
Cancelling the old BU before the new one is accepted
Questions and answers
Frequently asked
Do I get money back from my BU at the end?
Not with a standalone BU.
The premiums carried the risk of all policyholders.
Money back only comes with policies that have a savings part, and they cost more.
Is a BU with money back worth it?
Rarely.
You pay for the later payout through a higher premium.
A standalone BU and separate investing are usually cheaper and more flexible.
What happens to the surpluses?
With most BU policies they are netted against the premium every year.
That is why you pay the payable premium, not the higher gross one.
Do I get anything if I cancel?
With a standalone BU usually nothing or a small amount.
With a BU rider on a life or pension policy you get the surrender value of the main policy.
Can I deduct BU premiums from tax?
As other provision expenses, yes,
but within a ceiling of EUR 1,900 for employees and EUR 2,800 for the self employed,
which health and care insurance often use up already.
Should I cancel my BU shortly before retirement?
If only a few years remain and your savings carry you to retirement, it can be reasonable.
First check whether health problems are already on the horizon.
