In a world characterized by constant change and uncertainty, the need for reliable financial security is becoming increasingly clear. Concerns about poverty in old age in particular are causing many people to think about their own retirement provision. Various insurance providers are now advertising a combined product comprising occupational disability insurance and private pension provision, i.e. supplementary occupational disability insurance. But to what extent can occupational disability insurance actually help with retirement provision? Below we explain everything you need to know about the combination of occupational disability insurance and financial security for retirement!
Every working person should have occupational disability insurance because it protects you against the financial consequences of occupational disability. If you are permanently unable to carry out your current job due to an accident or illness, the insurance company will pay you a monthly disability pension. The pension is intended to compensate for the loss of your income.
A private pension is also a sensible investment for everyone. The statutory pension is generally not sufficient to maintain your standard of living after retirement. A sensible occupational disability insurance policy is therefore at least as important as retirement provision.
You may now be thinking: why not simply combine the two options? Some insurance companies had the same idea and invented supplementary disability insurance (BUZ). This allows you to make provisions for your retirement and at the same time protect yourself in the event of occupational disability. BUZ is not an independent insurance policy. Instead, as the name suggests, it is a supplement to a private pension plan. That sounds tempting, but an occupational disability insurance linked to private pension provision is not the best choice for everyone. We explain the exact reasons for this below.
Of course, the financial aspect also plays a decisive role in the decision for or against occupational disability insurance with retirement provision. The following factors are important when calculating the premium for occupational disability insurance:
In principle, occupational disability insurance is one of the more expensive types of insurance. With Allianz insurance, a 30-year-old office clerk in good health pays around 75 euros per month for a disability pension of 1500 euros. In addition, part of the income is paid into a private pension plan. Supplementary disability insurance is therefore quite expensive. You also need to bear in mind that, unlike with stand-alone policies, you can only reduce the premiums for both benefits with a combined product. Such insurance therefore only makes sense if you have a stable long-term income.
If you want to combine your retirement provision with occupational disability cover, you should first think about your individual needs. Think carefully about whether your life situation will change significantly in the next few years. The security of your income also plays a role. To select an occupational disability insurance policy that is tailored to your needs, you should definitely consult an insurance expert. There you can also find out whether a combination of disability insurance and retirement provision is even an option for you.
The combination of occupational disability insurance and old-age provision offers a number of advantages:
Despite the advantages, you should also consider the disadvantages:
Before you decide on a type of occupational disability insurance and private pension provision, you should definitely speak to an expert. Insurance advisors can provide you with expert advice based on many years of experience and help you make a decision that is tailored to your individual life situation.
Private pension provision and occupational disability insurance are essential for everyone. They enable you to maintain your standard of living in retirement or during a prolonged illness by paying a pension. Combining both policies can be a sensible option, but it also has some disadvantages. Due to the high costs and low flexibility, supplementary disability insurance is mainly suitable for high earners with a stable long-term income. To make an informed decision that provides comprehensive cover for your standard of living, you should definitely seek advice from an insurance expert.
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