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Backdating on occupational disability insurance and saving money

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The best comes to the beginning: If you start the year wisely, you pay less – for example, when you take out occupational disability insurance. Some insurers offer their customers the option to date the date of new contracts to December of the previous year. “If the beginning of the insurance is dated back to the previous year, insured persons will be one year younger on paper – and their contributions will fall,” explains Silke Barth, insurance expert for CostBend. How easy it is to save more than 2,000 euros and what you should pay attention to when taking out disability insurance is shown by CostBend.

Why is occupational disability insurance important?
Sickness and accidents are responsible for almost every fifth employee having to quit his job before reaching retirement age. State benefits to the inactive are low: around two thirds receive less than € 750 a month. In addition, certain insurance conditions must be met in order to receive the disability pension. For example, the so-called waiting period of five years ensures that young professionals are only entitled to a reduced earning capacity pension in exceptional cases. Self-employed and freelancers even go completely empty.

How much can insured people save?
A calculation example: A banker, born in 1978, who completes an occupational disability insurance with a monthly pension of € 1,000, saves € 67.85 annually by backdating to the past year. Over the 31-year period, this equates to 2,103.35 euros. 2

What should the disability insurance cover?
The occupational disability pension, which is agreed at the time the contract is concluded, should cover about 75 percent of the last net income.

What should you look for at the end?
In the case of disability insurance, it is advisable to agree on the longest possible duration – ideally up to the retirement age of 67 years. The tariff should include a post-insurance guarantee. This ensures flexibility in events such as marriage, birth or salary increases: the occupational disability pension can then be increased without a renewed health examination.