FOR EXPATS · INCOME PROTECTION
Income protection (Berufsunfähigkeitsversicherung) for expats in Germany
If you depend on your income, losing the ability to work is one of the biggest financial risks you face in Germany. Here's what BU covers, how much cover makes sense and what to watch out for.
In short
Occupational disability insurance (Berufsunfähigkeitsversicherung, BU) pays a monthly pension if you can no longer work in your last job to at least 50 %. The state disability pension is low – around €1,067 per month on average for new pensions in 2025[1] – and as a newcomer you often don't qualify yet[2]. A good starting point for the BU pension is 80 % of your net income. Gregor Vollmer-Fuchs, a financial advisor in Magdeburg, compares 36 insurers and advises expats in English.
- of net income as a starting point
- 80 %
- inability in your job triggers the BU pension
- 50 %
- insurers compared
- 36
WHAT BU COVERS
What BU covers and why state protection is thin
A private BU pays a monthly pension if you can no longer work in your last job to at least 50 %. Look for a waiver of “abstract referral”, so the insurer can't point you to a different job.
The state disability pension (Erwerbsminderungsrente) pays the full amount only if you can work less than three hours a day in any job, half if less than six hours[2]. Anyone born after 1 January 1961 has no statutory protection for their own occupation[3]. You usually need five years of insurance and three years of compulsory contributions in the last five years[2] – newcomers often have no claim yet.
HOW MUCH COVER
How much BU cover makes sense
As a rule of thumb, insure 80 % of your current net income. That covers running costs, retirement savings and a buffer for rehab or adaptations.
Just as important is a guarantee to increase the pension later without a new health check – triggered by events like a pay rise, marriage, a child or buying property.
HEALTH QUESTIONS
Health questions: why honest answers matter
Honest answers to the health questions are essential. Applying late is a common mistake: pre-existing conditions can lead to exclusions or a refusal.
That's why we first send an anonymous pre-check to several insurers before anything goes into an official application. You see in advance who accepts you and on what terms, and you avoid documented refusals that would burden every later application.
ALTERNATIVES
Alternatives to BU: Grundfähigkeit and critical illness
Basic-ability insurance (Grundfähigkeitsversicherung) covers basic abilities such as seeing, hearing or walking. It is often cheaper than BU, but narrower in scope – an option if BU is difficult to get.
Critical illness cover (schwere Krankheiten) pays a one-off sum on diagnoses like cancer, heart attack or stroke, whether or not you can keep working.
FAQ
Questions expats ask us
What does BU insurance cover?
It pays a monthly pension if you can no longer work in your last job to at least 50 %. For civil servants, a genuine DU clause also pays once the employer declares you unfit for service.
Isn't the state disability pension enough?
Usually not. New disability pensions averaged around €1,067 per month in 2025, and you usually need five years of contributions, three of them compulsory contributions in the last five years, before you qualify.[1][2]
How much BU pension should I insure?
As a rule of thumb, 80 % of your current net income. A guarantee to increase the pension later without a new health check lets your cover grow with salary, marriage, children or a property.
What does BU cost?
For a 30-year-old office employee, a €2,000 BU pension typically costs between €60 and €110 a month; manual jobs pay €130–250. These are experience values from our advice practice, not commitments – your premium depends on job, age, health and terms.
Does my BU still apply if I leave Germany?
Many tariffs cover you worldwide, so your protection stays if you move. We check the conditions of your tariff for you.
What if I can't get BU because of my health?
Basic-ability insurance (Grundfähigkeit) can be an alternative: it covers abilities such as seeing, hearing or walking, is often cheaper but narrower. Critical illness cover pays a one-off sum on diagnoses like cancer, heart attack or stroke.
NEXT STEP
Let's find out what fits you.
30 minutes, free, in English. You'll leave knowing your options and your next step.
Sources
- [1]Deutsche Rentenversicherung — Rentenstatistik 2025. https://jahresbericht.deutsche-rentenversicherung.de/artikel/in-zahlen-2025/
- [2]Bundesministerium der Justiz — § 43 SGB VI. https://www.gesetze-im-internet.de/sgb_6/__43.html
- [3]Bundesministerium der Justiz (gesetze-im-internet.de) — § 240 SGB VI Rente wegen teilweiser Erwerbsminderung bei Berufsunfähigkeit. https://www.gesetze-im-internet.de/sgb_6/__240.html
General information, not legal or tax advice. Rules can change; your individual situation decides.
Gregor Vollmer-Fuchs
Financial advisor (§§ 34d / 34f GewO)
Magdeburg · advising across Germany
Last reviewed: November 2026