Disability Insurance

Amount of pension, pension increase, dynamics and many beautiful, but incomprehensible to some terms? This sounds provocative, but so is. When a hedging of EUR 500 pension go food contributions rather nicely. The problem with many old contracts in occupational disability insurance is the low already in the contract amount, but on the other hand the lack of adjustment. So back to a case I met yesterday in consulting. A privately insured workers with incomes above the contribution assessment ceiling and a net income of almost 2,500 EUR had an insured BU pension from 1280 EUR monthly.

Paid, this means (without taking into account taxes etc) tooth amount of BU pension: 1,280 EUR minus AG and in proportion to the private health insurance (PKV) of 489 EUR (today) then stay left just under EUR 800. At a standard of living today to EUR 2,500 and not yet take into account amounts for one, then again not much needed adequate pensions. But how high must now the pension be? Unfortunately, there is not a blanket recommendation. This is dependent on many factors. Here are questioning (of course not only) the following points: 1) assets exist and these are consumed can, so always available? 2.) available real estate to live rent-free or rent? 3.) what costs continue even in the event of a BU? 4.) 4) how high you want to / the protection of old-age pension must be (mostly contributions to the statutory pension insurance accounts for then, here is a serious gap) 5) Who must in the family (co-) provides to be? Partner, children? Once these points have been clarified, it goes to the other questions about the duration of the pension, duration of protection, and much more. Tip: Look strongly at your own policy for occupational disability protection. In addition to the question according to the insurance terms and conditions and eligibility criteria check out especially on the pension amount and the maturity age.

If the height or another point doesn’t fit, you change it in the short term. The questionnaire to the BU gives you more clues and can be downloaded here free of charge. And another point is often “forgotten”: by a dynamic insurance protection against entry of the Leistungsfalls can be raised regularly. The paid occurred however, this adaptation is no longer possible. Just in the event of retirement in recent years, this could be but quickly to the financial disaster. Today, quite enough–something like 1,500 EUR pension but is in 10, 15, 20 or 30 years? From EUR 1,000 pension only 743 EUR (purchasing power) with an inflation rate of 2% p.a. in 15 years, in 20 years, they are only worth 672 EUR. But, what can you do? In the event of occupational disability, also have a stake in the surplus of the insurer will be paid in addition to the agreed guaranteed pension. This is dependent upon the success of the company, capital markets and investment policy and income from investments. This is indeed “nice”, but just not guaranteed. For some companies, there is therefore contractually to secure pension increase guarantees. The so-called “guaranteed pension increase” can be agreed upon at some, long time not all insurers. This then ensures a contractually promised to increase of the pension to the agreed percentage. This therefore represents a balance of loss of purchasing power and is, even if for a contribution surcharge is payable, to recommend strongly.

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