Monthly pension
How useful is insurance against occupational disability?
Updated May 11, 2026 – 6:36 a.mReading time: 6 minutes
Anyone who can no longer do their job will quickly find themselves in dire straits. Occupational disability insurance offers protection. But there is a problem.
It’s a scenario that no one likes to imagine: you become seriously ill, have an accident or are so exhausted that you can no longer do your job. The result: significantly less income. Your very existence may even be in danger.
It is the task of occupational disability insurance to cover this risk. We explain how it works, who benefits from it and what distinguishes those who are unable to work from those who are unable to work.
How does occupational disability insurance work?
The terms occupational disability and incapacity to work are often used interchangeably. There is an important difference: Anyone who is unable to work can usually return to their job after a while; this is not a permanent situation. You can read more about the difference between being unfit for work and unfit for work here.
Only if your health is so severely impaired that treatment would not improve your condition enough to allow you to return will you be considered unfit for work. And only then will you receive the pension from the insurance. Your insurance company will make a decision based on various documents – such as medical reports and a job description.
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Once your insurance company has decided that you are unable to work, that doesn’t mean it will stay that way forever. If she has miscalculated and you feel better at some point, she can stop the pension. However, you do not have to pay back the money you have received up to that point.
The most common cause of occupational disability is now mental illness. Accidents, however, only account for a small proportion of approved applications.
What and when does the BU pay?
Occupational disability insurance pays you a monthly pension. The amount is agreed in the insurance policy and depends on your income at the time of taking out the insurance and the insurer’s specifications. It is often possible to receive up to 70 percent of your gross salary as a pension.
To get it, you must submit an application for benefits. The performance check then follows – regardless of whether you are applying for a pension due to illness, accident or physical wear and tear. Whether you are actually unable to work or “just” unable to work depends on the medical prognosis.
If your condition can improve, for example by undergoing rehabilitation, you are not yet considered unfit for work. As a result, you will not receive any benefits from occupational disability insurance, but rather sick pay – initially from your employer for six weeks, then from your health insurance company. Those with statutory health insurance are entitled to this for a maximum of 78 weeks within three years. The sick pay amounts to a maximum of 70 percent of your gross salary. You can read more about sick pay here.
