Incapacity to work: Over 50 examples, causes, and how to secure your financial future
4 Apr 2025
7
Minutes
Katrin Straub
CEO at nextsure
One in four workers will become unable to work due to disability at some point in their lives—often unexpectedly. Discover through more than fifty examples what this could mean for you and how occupational disability insurance provides essential financial protection.
The topic in brief and concise terms
Occupational disability is a significant risk; about one in four working individuals is affected, with mental illnesses being the most common cause.
A private disability insurance is crucial, as the statutory reduced earning capacity pension often isn't enough to maintain one's standard of living.
Early completion, honest health information, and careful examination of the contract conditions are key to effective disability insurance protection.
Understanding Occupational Disability: The Key Facts
Disability to work means being unable to perform your last occupation due to illness, injury, or more than age-appropriate decline in physical strength, to at least 50 percent, on a likely permanent basis. This definition under § 172 of the Insurance Contract Act (VVG) forms the basis. Mental illnesses are the most common cause, accounting for over 34 percent. Diseases of the musculoskeletal system follow with approximately twenty percent. An example: A 37-year-old administrative specialist can only perform her duties to less than 50 percent due to depression and is therefore considered unable to work. The occupational disability insurance steps in in such cases. These facts highlight the necessity of addressing the topic early on.
Practical Examples: How Disability Affects Everyday Life
The reality of occupational disability is varied and affects people from all professions. Take a 50-year-old management consultant who breaks down due to burnout and is unable to work for an extended period; his occupational disability insurance pays out. A roofer who becomes paraplegic after a fall can no longer practice his profession. It is different for an administrative employee with a sedentary job, where a similar injury may not lead to disability to the same extent. A professional pilot can become disabled due to diabetes or a visual impairment because they lose their medical certificate to fly. These examples show how individually occupational disability can occur. Here are more scenarios:
A nurse with chronic back pain after several herniated discs can no longer perform physically demanding work.
A teacher develops severe depression and anxiety, making it impossible to stand in front of classes and teach.
An IT specialist experiences a serious car accident resulting in permanent cognitive limitations that drastically reduce concentration abilities.
A hairdresser develops a severe contact allergy to hair dyes and can no longer practice their profession.
A musician loses part of his ability to perform with an instrument due to an accident, ending his career.
A construction worker with advanced arthritis in knees and hips is no longer able to perform heavy physical work.
A manager with cancer must undergo lengthy treatments and is permanently weakened, preventing a return to the stressful job.
An architect with a progressive eye disease can no longer draw detailed plans or work on a screen.
These cases highlight the necessity for insurance, as the financial consequences can be severe. Looking at the probability by profession is also insightful.
Mental disorders as the main cause: Over 15 examples
Mental disorders and neurological diseases are the most common cause of occupational disability, accounting for 33.51 percent of cases, and this trend is rising. Depression, burnout, and anxiety disorders top the list. For example: A firefighter suffers from post-traumatic stress disorder (PTSD) following a traumatic incident and is unable to continue his service. Although he theoretically could take on an office job, he receives a pension from his private occupational disability insurance. The occupational disability due to depression is a common claim. Here are some more examples of mental illnesses that can lead to occupational disability:
Adjustment disorders following major life events.
Bipolar disorders with manic and depressive phases.
Schizophrenia with a loss of reality and thought disorders.
Obsessive-compulsive disorders that severely impact work routine.
Personality disorders, e.g., Borderline syndrome.
Eating disorders such as anorexia or bulimia with severe physical and mental consequences.
Chronic sleep disorders leading to severe exhaustion.
Somatoform disorders, where physical complaints occur without organic findings.
Addiction disorders that destroy the ability to work.
Panic disorders with recurring severe anxiety attacks.
Agoraphobia, the fear of public spaces.
Social phobias that make professional interactions impossible.
Dissociative disorders, where parts of one's identity or memory are lost.
Neurotic developments that significantly limit performance.
Chronic fatigue syndrome (CFS/ME).
It is important to have thorough documentation of the impact on employment by specialists. Recognition does not depend solely on the diagnosis but on the individual impairment. This leads to the question of which other conditions commonly lead to occupational disability.
Musculoskeletal system, cancer and more: 15+ more examples of diseases
Aside from mental illnesses, disorders of the skeletal and musculoskeletal systems, at around twenty per cent, are a very common cause of occupational disability. Cancers follow at approximately seventeen per cent. Accidents play a smaller, but still relevant, role at under eight per cent. Here are some examples:
Musculoskeletal disorders:
Herniated discs with chronic pain and movement restrictions.
Arthritis in joints (e.g. knee, hip, shoulder, fingers).
Rheumatoid arthritis with joint inflammation and destruction.
Fibromyalgia with widespread muscle pain.
Osteoporosis with an increased risk of bone fractures.
Bechterew's disease (ankylosing spondylitis) with spinal stiffening.
Scoliosis (curvature of the spine) with severe discomfort.
Carpal tunnel syndrome with nerve damage in the hand.
Cancers:
Breast cancer with lengthy therapy and exhaustion.
Lung cancer, often associated with severe shortness of breath.
Bowel cancer with significant effects on digestion and energy.
Prostate cancer with possible consequences such as incontinence.
Leukaemia or lymphomas (e.g., lymph gland cancer) with weakening of the immune system.
Other diseases and accidents:
Heart attack or stroke with lasting damage.
Multiple sclerosis (MS) with progressive neurological impairments.
Crohn's disease or ulcerative colitis (chronic inflammatory bowel diseases).
Severe migraines causing regular work absences.
Diabetes mellitus with serious complications (e.g. polyneuropathy, kidney damage).
Serious accident consequences, e.g. traumatic brain injury or amputations.
Chronic kidney failure requiring dialysis.
Severe lung diseases such as COPD.
The individual manifestations and the demands of the profession are always crucial. The degree of occupational disability is assessed on a case-by-case basis. Next, we consider the legal foundations and expert tips.
Expert Knowledge: Legal Foundations and Key Judgements
The legal definition of occupational disability is found in Section 172, paragraph two of the Insurance Contracts Act (VVG). Accordingly, a person is considered occupationally disabled if they can no longer perform their most recently practiced occupation, wholly or partly, for the foreseeable future due to illness, bodily injury, or a decline in strength beyond what is appropriate for their age. Insurers generally require a prognosis period of at least six months and a degree of occupational disability of at least fifty percent. There is no universally valid list of illnesses that automatically lead to recognition; what matters is always the individual impact on the specific occupation. The distinction from incapacity to work is important in this context. Courts regularly issue judgments on disputed cases, such as abstract referral or the limitation of benefit acknowledgements. For instance, the Federal Court of Justice (BGH) has strengthened the rights of policyholders in cases of limited acknowledgements (Case No. IV ZR 235/18). Another BGH ruling (Case No. IV ZR 19/18) deals with income comparison when referring to another occupation. Our expert tip: Document your health condition and professional activity comprehensively from the start and seek specialised legal advice early on when making an application or facing problems. This can be crucial for determining when the disability insurance pays out. A thorough examination of the insurance terms is essential.
Taking Precautions: Recommendations for Your Security
Considering that statistically one in four employees becomes unable to work, private insurance is essential. The statutory disability pension often isn't enough to maintain one's standard of living, as it typically amounts to less than a third of the last gross salary. An occupational disability insurance should ideally cover seventy to eighty percent of your net income. Our expert tip: Take out occupational disability insurance as early as possible. Younger people are often healthier and therefore receive cheaper premiums. Pay attention to the contract's terms, especially the waiver of abstract referral and a clear definition of occupational disability. Clarify reasons for occupational disability and how they are covered in your contract. Honest and complete answers to health questions on the application are crucial to avoid jeopardizing your insurance cover. Also consider whether additional components, such as a guaranteed increase in pension benefits in the event of a claim (dynamics), are useful. For certain professional groups, such as educators, specific risks must be considered. Get comprehensive advice to find the cover that's right for you.
Your next step towards financial security
The examples and facts clearly show: Occupational disability can affect anyone and has far-reaching financial consequences. A solid occupational disability insurance is therefore an important component of your personal provision. It protects your income and safeguards your standard of living if you can no longer practice your profession for health reasons. At nextsure, we understand the complexity of this topic and offer you transparent solutions tailored to your needs. Use our expertise for your financial future. Request an individual risk analysis now: Have your insurance situation checked for free and receive concrete optimization suggestions.
More useful links
Wikipedia provides a comprehensive overview of disability insurance.
The German Pension Insurance offers statistics and reports on reduced earning capacity pensions.
The Federal Ministry of Labour and Social Affairs (BMAS) provides information about the employment of severely disabled people.
The Federal Statistical Office (Destatis) offers statistics on people with disabilities.
REHADAT provides statistics on types of disabilities based on severe disability statistics.
The Federal Institute for Occupational Safety and Health (BAuA) delivers figures, data, and facts about workplace safety and health.
The AOK provides an overview of absence reports in the context of corporate health.
The German Insurance Association (GDV) presents seven facts about disability insurance.
The insurers inform about the causes of disability.
FAQ
When exactly is one considered unable to work?
A person is considered unable to work if they are likely to be able to perform their last job at less than 50 percent capacity for at least six months due to illness, bodily injury, or debility.
What illnesses are typical causes of occupational disability?
Typical causes are mental illnesses (approximately 34 percent), musculoskeletal disorders (approximately 20 percent), cancer (approximately 17 percent), and accidents (approximately 8 percent).
What happens if I become unable to work due to burnout?
Burnout can be recognized as a cause for disability in the workplace. It is crucial that a doctor certifies that due to burnout, you are likely to perform your professional duties at less than 50 percent for at least six months.
How many people in Germany become unable to work?
Statistically, about one in four employees in Germany becomes unable to work at some point in their career.
Is disability insurance really necessary?
Yes, for most working professionals, it is very important because the state disability pension is often not sufficient to maintain the usual standard of living. It covers an important financial gap.
What should I consider when taking out occupational disability insurance?
Pay attention to adequate pension levels, the insurer's waiver of abstract reference, clear and fair contract terms, the longest possible duration (until retirement), and answer health questions absolutely honestly.
