Insurance broker / Insurance questions / Occupational disability

When should I take out disability insurance?

In short

As early as possible. Two things rise with age: the premium, and the risk that a diagnosis leads to a surcharge, an exclusion or a refusal. For EUR 1,000 of monthly benefit until 65 in a commercial job you pay about EUR 75 to 95 a month at 25 and about EUR 125 to 168 at 45. In your mid forties it still pays off, but the choice of insurers gets smaller.

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When should I take out disability insurance?

What it costs

Premiums from a published comparison for a commercial job, EUR 1,000 of monthly benefit until age 65, healthy.

Example	Typical range
Age 25	about EUR 75 to 95 a month
Age 35, same cover	about EUR 95 to 123 a month
Age 45, same cover	about EUR 125 to 168 a month
Age 55, same cover	about EUR 155 to 199 a month
Surcharge for high blood pressure, by insurer	0 to 50 percent, up to 100 percent for serious conditions
Total paid over the term, by entry age	around EUR 34,700 to 40,500

Guide values as of September 2026, from a published premium comparison by entry age and from publicly quoted tariff examples. The totals are calculated from those figures and rounded, so they are guide values from quoting practice; increases up to the gross premium and an agreed annual increase are not included. Your premium depends on job, age and health; we obtain the exact quote for you.

Worked example

Commercial job, EUR 1,000 benefit until 65, three entry ages

Same job, same benefit, same end age. Only the start differs.

Entry at 25	about EUR 84 a month, 480 months, around EUR 40,500
Entry at 35	about EUR 108 a month, 360 months, around EUR 38,800
Entry at 45	about EUR 144 a month, 240 months, around EUR 34,700
Cost per protected year	around EUR 1,010 at 25, EUR 1,290 at 35, EUR 1,730 at 45

The totals sit close together although the early policy protects twice as many years. Per protected year, starting at 25 is almost half the price, and at 25 the health questions are easier to answer. Rounded guide values.

Two clocks are running, and the second one matters more

The first clock is the premium. It is set at entry and then stays put, so every year of waiting drags a surcharge across the whole term. In a published comparison for a commercial job with EUR 1,000 of benefit until 65, the cover costs about EUR 75 to 95 a month at 25 and about EUR 125 to 168 at 45.

The second clock is your health, and it is usually underweighted. Diagnoses accumulate over the years: a slipped disc, a course of therapy, raised blood pressure. According to the German insurance association (GDV), around 75 percent of applications are accepted with no surcharge and no exclusion, 12 percent get an exclusion, 3 percent a surcharge and 4 percent are declined. What a diagnosis costs depends heavily on the insurer: for high blood pressure the range runs from normal terms through a 20 percent surcharge to 50 percent.

The difference between the two clocks is fundamental. A higher premium you can pay. An exclusion for back or mental health you cannot pay, it often stays until the end of the contract, and those are exactly the conditions that cause most disability claims.

Entry age	Premium range per month, EUR 1,000 benefit until 65	Outcome of the health check
up to 25	about EUR 50 to 95	almost always on normal terms
26 to 35	about EUR 85 to 123	usually no surcharge, first exclusions for back and mental health
36 to 45	about EUR 108 to 168	surcharge or exclusion more often, a pre-check pays off
46 to 50	about EUR 145 to 180	narrower choice, stricter checks, medical reports often needed
51 and over	about EUR 155 to 199	many insurers no longer accept applications

Why starting earlier barely costs more in total

The obvious objection is that starting earlier means paying more months, so more in total. That only holds if you ignore the years of cover you get. Because the premium is fixed at the start and then stays put, the totals across the term end up close together even though the length of protection differs sharply.

In the worked example below, the policy from 25 costs around EUR 40,500 for 40 protected years, and the policy from 45 around EUR 34,700 for 20 protected years. Per protected year the early start is therefore almost half the price. For young people in favourably rated jobs the early policy is even cheaper in absolute terms.

Does it still pay off in your mid forties or at fifty?

Yes, if your health allows it and the premium is affordable. The reason is plain: the years between 45 and 60 are the most expensive of a working life. Income is at its peak, a loan and a family depend on it, and the risk of disability rises sharply in exactly that period. Falling out with nothing in place costs more then than at 30.

The limits should be said openly. The highest entry age is between 50 and 55 with most insurers, a few go to 60. From the mid fifties many will not accept an application at all. The health check gets stricter, medical reports are requested, and the choice shrinks to a handful of companies. If the premium gets too high, lower the benefit rather than shorten the term: cover that ends at 60 is missing in precisely the last and riskiest working years. If nothing is available, basic abilities insurance (Grundfähigkeitsversicherung) or general disability insurance (Erwerbsunfähigkeitsversicherung) remain as weaker substitutes.

What an early policy has to get right

A policy that starts at 22 has to last forty years, during which job, income and family change several times. Four points decide whether it can. First, the increase options (Nachversicherungsgarantie): raising the benefit later without new health questions, on starting work, a pay rise, marriage, a child and buying property. Second, waiving abstract referral (abstrakte Verweisung), so the insurer cannot point you at a job you have never done.

Third, the annual increase (Dynamik): it lifts premium and benefit by a fixed percentage each year, so that EUR 1,500 is not half eaten by inflation after twenty years. Fourth, the extension option: it lets you extend the term later without a new health check, for example if the state pension age rises. If you might leave Germany one day, check that the benefit is paid worldwide.

When you do not need to hurry

Two cases can wait. If your assets or rental income will carry you to retirement, you do not need income protection. And if you already have a BU, you do not need a second one, you need to raise the existing one through its increase option, because the old policy carries your old entry age and your old health answers.

One argument does not belong on that list: that you still earn too little. A small benefit now beats a large one in five years, because increasing it later works without health questions while a new application does not.

Step by step

Write down your net income and fixed costs.
Set the benefit at 70 to 80 percent of your net income, with a term until 67.
Collect doctor visits from the last five to ten years, before another examination is added.
Have anonymous pre-checks sent to several insurers, so a refusal is not put on record.
Compare quotes on increase options, extension option and the waiver of abstract referral.

Checklist

Term until 67, not until 60
Abstract referral waived
Increase options for job, pay, marriage, child, property
Extension option without a new health check
Annual increase agreed
Net premium and gross premium both known

Common mistakes

Waiting until you start work because there will be more money then
Having a check up shortly before applying and carrying the fresh diagnosis into the application
Shortening the term to 60 to save premium instead of lowering the benefit
Applying without a pre-check and moving on to other insurers after a refusal

Questions and answers

Frequently asked

From what age can I take out a BU?

Depending on the insurer from age 10 or 15 for schoolchildren, then during training and university. School and study time count as an occupation.

Up to what age can I still sign?

Usually 50 or 55, a few insurers up to 60. From the mid fifties many decline new applications.

Is a BU still worth it at 50?

Yes, if health and premium allow it, because the years to retirement are the most expensive. Expect higher premiums and less choice.

Does my premium rise as I get older?

No. It is fixed when the policy starts. It can only be raised up to the gross premium, or rise through an agreed annual increase.

What is an extension option?

The right to extend the term later without a new health check, for example if the state pension age rises.

Which is worse, waiting a year or taking a smaller benefit?

Waiting a year. The benefit can be raised later through the increase option without health questions, a new policy cannot.

I already have an old BU. New policy or increase?

Usually increase. The old policy carries your entry age and your health answers from back then, and you cannot buy either of those again.