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What is abstract referral (abstrakte Verweisung)?

In short

With abstract referral (abstrakte Verweisung) the insurer may refuse your BU benefit because you could in theory work in another comparable job, even if nobody would hire you. German law allows this clause in section 172 (3) of the Insurance Contract Act (VVG). Good modern policies waive it and only refer you to a job you actually take up.

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What is abstract referral (abstrakte Verweisung)?

What it costs

A policy without abstract referral is standard today and costs no extra. The examples show what such a policy costs and what the clause is worth in a claim.

Example	Typical range
Office clerk, age 30, EUR 1,500 benefit to age 67	from about EUR 48 a month
Civil engineer, self-employed, age 40, EUR 1,500 benefit to age 67	from about EUR 60 a month
Tiler, age 35, EUR 1,500 benefit	about EUR 191 a month
Value of the benefit, EUR 1,500 over 25 years	EUR 450,000
Accepted income loss in the referral job	rule of thumb up to about 20 percent
Share of abstract referral among rejected claims	about 0.1 percent

As of October 2026. Premiums from published tariff examples dated April 2026; yours depends on job, age and health. The 20 percent is a rule of thumb from case law and policy wordings, not a statutory figure. The value of the benefit is a simple sum without indexation or interest.

Worked example

Nurse, age 42, slipped disc

He can no longer lift or reposition patients, 70 percent of his job is no longer possible. Policy with EUR 1,500 benefit to age 67. In theory he could work in hospital administration, but he has no job there.

Disability in the job last held	70 percent, 50 percent threshold reached
Policy with abstract referral	referral to administration possible, benefit EUR 0
Policy with waiver	EUR 1,500 a month
Remaining term to age 67	25 years
Total benefit without indexation	EUR 450,000

Two words, could do, decide on EUR 450,000 here. If he later takes an equivalent job in administration, the better policy may stop paying too. Without a new job, only that policy pays.

What the term really means

Under section 172 (2) VVG you count as berufsunfähig (occupationally disabled) if illness, injury or loss of strength is expected to keep you permanently from doing the job you last held. Paragraph 3 lets the insurer add a condition: that you also do not do, or could not do, another job matching your training, skills and standard of living.

If the contract only says do, that is concrete referral. If it also says could do, that is abstract referral. Two words decide, and they can be worth several hundred thousand euros. With abstract referral the insurer does not have to show that a vacancy exists. The risk of not finding work stays with you.

Clause	What the insurer may do	What it means for you
Waiver of abstract referral	refer you only to a job you really do after falling ill	no benefit while you work in an equivalent job; without a new job it pays
Abstract referral agreed	refer you to any equivalent job you could manage physically	no benefit even if you are unemployed
Erwerbsunfähigkeit policy	refer you to any work on the open labour market	benefit only if you can barely work at all

Your standard of living as a brake

Even a permitted referral has limits. The other job must match your previous standard of living, meaning comparable pay and social standing. As a rule of thumb, your income may not drop by more than about 20 percent. Many policy wordings now state such a limit in writing.

A higher salary in the new job does not automatically make up for lower qualifications. The Federal Court of Justice (Bundesgerichtshof) made this clear in 2017. A skilled worker does not have to accept a referral to unskilled work just because it happens to pay well.

How often it matters today

Rarely, which is good news. According to figures from the German insurance association, only about 0.1 percent of rejected claims are due to abstract referral. Almost all new standalone BU policies waive it. Claims fail far more often because the 50 percent threshold was not proven or because something was missing in the health questions.

The clause still matters in older contracts, in some riders attached to life or pension policies and in some employer schemes. If you have such a contract, do not cancel it straight away. First check whether you can still get a new policy with your current health.

Self-employed: reorganising the business

For the self-employed there is a special kind of referral. The insurer may check whether you could reorganise your business and keep working, for example by having an employee take over the physical work while you move to the office. This must be economically reasonable and in practice must not cut your income by more than about 20 percent.

Good policies waive this check for small businesses, for graduates doing office work or above a certain share of commercial work. The exact limits vary a lot, so read the clause before you sign, not when you claim.

Concrete referral has pitfalls too

A waiver of abstract referral does not mean you can never be referred. If you voluntarily take up a new, equivalent job after falling ill, the insurer may stop paying. This also applies during the follow-up review while you are already receiving benefits.

A new job that pays much less or needs less training is no reason to stop. You still have to report it. If you hide that you are working again, you risk having to pay money back.

Step by step

Find your policy wording and read the section on referral.
Check whether it says only do or also could do.
If you are self-employed, read the rule on reorganising your business and its limits.
Look for an income limit for the comparison job.
With an old policy containing abstract referral, apply for a new one first and only decide on the old one once you are accepted.

Checklist

Explicit waiver of abstract referral
Concrete referral only to equivalent jobs
Income limit for the comparison job in the wording
Clear rule on reorganisation for the self-employed
Waiver also applies in the follow-up review
Riders use the same clause as the standalone policy

Common mistakes

Choosing a cheap policy without reading the referral clause
Mistaking an Erwerbsunfähigkeit policy for a BU policy
Cancelling an old policy with abstract referral before a new one is accepted
Not reporting a new job while receiving benefits
Assuming any lower paid job is enough for the insurer to refer you

Questions and answers

Frequently asked

How can I tell whether my policy uses abstract referral?

Look for the section defining Berufsunfähigkeit. If it says you must also be unable to do any other job, abstract referral applies. An explicit waiver is usually right next to it.

Can the insurer refer me to a job that pays less?

Only within limits. The job must match your standard of living. As a rule of thumb, income may not fall by more than about 20 percent.

Does a policy without abstract referral cost more?

In practice no, because almost all standalone BU policies waive it. A policy with abstract referral is not a budget option, it is a weaker product.

Does the waiver still apply if I become unemployed?

Yes. Without a new job, the insurer cannot refer you to another occupation under concrete referral. Your last job remains the measure.

What about Erwerbsunfähigkeit insurance?

By design it refers you to the whole labour market and only pays if you can barely work at all. It is cheaper but no substitute for BU cover.

Should I cancel an old policy with abstract referral?

Not hastily. A new policy costs more because you are older and asks new health questions. Get accepted first, then compare.

Sources

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