Berufsunfähigkeit Lawyer: Comprehensive protection for your legal career
5 Apr 2025
6
Minutes
Katrin Straub
CEO at nextsure
Every fifth lawyer becomes unable to work during their career, yet many underestimate this risk. Learn how to secure your financial livelihood as a lawyer and which pitfalls you should avoid.
The topic in brief and concise terms
One in five lawyers becomes unable to work; mental health issues are the most common cause.
The pension scheme often provides benefits only in the case of 100% occupational disability and surrender of the licence – a private disability insurance does so from 50%.
Pay attention to important clauses such as the waiver of abstract/concrete referrals and a beneficial reorganization clause.
Understanding the risk of occupational disability for lawyers
Many lawyers are lulled into a false sense of security regarding the risk of occupational disability. Statistics show that about one in five lawyers becomes unable to practice their profession during their career. The belief that desk work poses less risk is misleading, as the high demands of legal work come with specific hazards. A private occupational disability insurance is therefore a fundamental component of your financial planning. The average weekly working hours for full-time lawyers is 50 hours. This heavy workload can lead to health problems in the long term. It is important to understand and properly configure your own occupational disability insurance.
The causes of occupational disability among lawyers are varied. Mental illnesses such as burnout or depression are the leading triggers at almost 30 percent. These are closely followed by musculoskeletal disorders at about 19 percent and cancer at around 19.3 percent. Even though lawyers often work in offices, the risk of certain illnesses, due to stress and a predominantly sedentary lifestyle, is actually increased. These figures highlight that solid protection is essential to avoid financial ruin in the event of an emergency. Therefore, understanding the terms of a disability insurance policy is crucial.
Pension Scheme versus Private Disability Insurance: A Critical Analysis
Many lawyers rely on the benefits provided by their professional pension scheme in the event of occupational disability. The pension scheme for lawyers typically only provides benefits in the case of complete occupational disability and often only after the legal license is returned. In the lawyers' pension scheme in North Rhine-Westphalia, only 294 out of 37,116 members received an occupational disability pension in 2022, which is less than one percent. These figures highlight a significant coverage gap. On the other hand, a private occupational disability insurance often pays out from a fifty percent occupational disability. The pension amount can also be adjusted more flexibly. Another important point is the difference between occupational and general disability, which many people are unaware of.
The benefits of the pension scheme are also often tied to strict conditions. For example, with the North Rhine-Westphalia pension scheme, legal practice must be ceased and the ability to practice law must have dropped below three hours per day. The private occupational disability insurance offers significantly more flexible and individual solutions here. It allows you to secure the profession you last practiced and the associated standard of living without requiring a complete cessation of activity. However, the definitions of benefits can vary, so a thorough review of the contract terms, as outlined in § 172 VVG, is essential. A correct application for occupational disability is crucial.
Optimising Important Contract Clauses for Lawyers
When taking out disability insurance for lawyers, the details in the contract are crucial. One of the most important clauses is the waiver of abstract referral. This means the insurer cannot refer you to another profession that you could theoretically still perform, but instead checks for disability based on your specific work as a lawyer. Many insurers even offer lawyers a waiver of concrete referral. This means you could receive a disability pension while still working in another profession that matches your previous status. This is a significant advantage over standard contracts.
For self-employed lawyers, the re-organisation clause is of great importance. This regulates whether and under what conditions the insurer can require you to reorganise your practice in order to continue working. Ideally, the insurer should waive the examination of re-organisation or tie it to very tight and beneficial conditions for you. Pay attention to the following points regarding the re-organisation clause:
The insurer waives examination if you as an academic are engaged in less than ninety percent commercial/organisational activities.
The re-organisation must be economically and operationally appropriate.
A considerable capital expenditure for re-organisation (e.g., more than one year's pension) should not be acceptable.
Your status should not deteriorate due to re-organisation.
Our expert tip: Some insurers offer special tariffs for lawyers with simplified health questions, which can facilitate access. A careful examination of the deadlines for reporting a disability is also important.
Determine the correct pension amount and duration
Determining the correct pension amount is a crucial factor in securing against occupational disability as a lawyer. It should cover at least your net income to maintain your accustomed standard of living. Consider not only your ongoing private expenses, but also the health insurance contributions (which will then have to be fully borne by you) and the contributions to the provident fund. For a privately insured lawyer with a net income of 8,000 euros per month, the need can quickly exceed this amount. A pension amount of 3,000 to 4,000 euros per month is appropriate for many jurists.
The contract term should ideally last until the statutory retirement age, that is, at least until the age of 67. Pay attention to options for extension in case the retirement age is legally raised. A contribution dynamics of five percent and a benefit dynamics of three percent help offset inflation and preserve the value of your pension in the long term. Our expert tip: For very high desired pensions, splitting across two insurers can be sensible to avoid medical examinations or to have more flexible additional insurance options. Also clarify who pays in the event of benefits and how the processes work.
Health Questions and Application Process: Avoiding Pitfalls
The health questions in the application are a critical point when taking out a disability insurance policy. Incorrect or incomplete information can lead to the refusal of benefits, even if the undisclosed illness is not the cause of the disability. Take ample time and answer all questions truthfully and completely. If in doubt, obtain information from your doctors and health insurance. The inquiry period for mental illnesses is ten years with some insurers, and only five with others. This can make a significant difference.
Some insurers offer tariffs with simplified health questions for lawyers. These can be a good option, especially if there are minor pre-existing conditions. Here are typical points that are often queried in simplified health checks:
Have you been treated by a cardiologist in the past three years?
Have you been treated by a psychiatrist or psychologist in the past three years?
Have you been treated by an orthopaedist in the past three years?
Do you currently have or have you had illnesses in the past twelve months that caused you to be continuously unable to work for more than two weeks?
Our expert tip: Make use of the option of an anonymous pre-risk inquiry. This way, you can have your chances with different insurers assessed without your data being directly passed on. This is recommended particularly if you have pre-existing conditions. Should there nevertheless be a refusal by the insurer, an objection can be considered.
Consider legal foundations and current jurisprudence
The legal basis for occupational disability insurance can be found in the Insurance Contract Act (VVG), particularly in paragraphs 172 to 177. § 172 paragraph 2 VVG defines when an occupational disability is present: “An individual is deemed occupationally disabled if they are no longer able to perform their last occupation, as it was structured without health impairments, as a result of illness, physical injury, or more than age-related loss of strength, entirely or partially and presumably permanently.” The insurance terms often specify this definition by replacing “presumably permanently” with a period of six months.
Case law continually develops the interpretation of these norms. For instance, the Federal Court of Justice (BGH) in various rulings has clarified the requirements for the insured to demonstrate an occupational disability and the insurer's obligation to pay benefits. A judgement from 14 July 2021 (Ref.: IV ZR 153/20) dealt with the exact commencement date of the insurance event. Our expert tip: Detailed documentation of one's own job profile as a lawyer is crucial in the event of a claim. Provide detailed accounts of which specific activities you perform and for how many hours per week. In 2019, lawyers spent an average of 42 percent of their working time on file management and only eleven percent on court appointments.
Your next step towards optimal protection
Occupational disability insurance is a complex but indispensable issue for lawyers. A careful analysis of one's own needs and a precise comparison of the offers are essential. Do not rely solely on the pension fund, but create a solid financial foundation with a private occupational disability insurance for the eventuality. In 2016, the average annual surplus of self-employed full-time lawyers was 94,000 euros, an income that should be protected.
At nextsure, we understand the specific requirements of lawyers and help you find the right protection. Our mission is to offer you customised and easily comprehensible insurance solutions. Take advantage of our expertise for your safety. Request your personalised risk analysis now: have your insurance situation checked free of charge and receive concrete optimisation suggestions.
More useful links
Statista provides detailed statistics on the distribution of the causes of disability in Germany.
GDV (Gesamtverband der Deutschen Versicherungswirtschaft) provides seven key facts about occupational disability insurance.
Deutsche Rentenversicherung explains the official definition of disability from the perspective of statutory pension insurance.
Bundesministerium für Arbeit und Soziales (BMAS) offers a definition of the term occupational disability in the pension glossary.
Statista shows the probability of becoming occupationally disabled by the retirement age of 65.
Verbraucherzentrale provides comprehensive information on how to protect against income loss due to disability.
DAK-Gesundheit provides their current Health Report 2023, which contains relevant data on health issues.
FAQ
What are the most common causes of occupational disability among lawyers?
The most common causes are mental illnesses (e.g., burnout, depression) at almost 30 percent, followed by diseases of the skeletal and musculoskeletal system (approx. 19 percent) and cancer (approx. 19.3 percent). The high stress in the legal profession can increase the risk of certain illnesses.
At what level of occupational disability does private disability insurance for lawyers provide benefits?
Most private disability insurance policies for lawyers pay out from a disability level of 50 percent. This means that if you are unable to perform your legal profession to at least 50 percent due to health reasons for an expected period of at least six months.
What should the disability pension for a lawyer be?
The pension should cover your net income to continue financing ongoing expenses, contributions to health insurance and the pension scheme, as well as private retirement provisions. For many lawyers, a monthly pension between 3,000 and 4,000 euros is advisable.
What should lawyers consider in the health questions of the occupational disability insurance application?
Answer all health questions absolutely truthfully and completely. Incorrect information can lead to the loss of insurance cover. If in doubt, seek advice from doctors. Some insurers offer tariffs with simplified health questions for lawyers. An anonymous preliminary risk inquiry is often useful.
Does the pension scheme play a role in private disability insurance?
Benefits from the pension fund are generally not offset against an existing private disability insurance (DI) pension in the event of occupational disability. However, when taking out a private DI, insurers may take into account the theoretical benefits of the pension fund when calculating the maximum insurable private DI pension.
What are the benefits of a specific disability insurance for lawyers?
Special occupational disability tariffs for lawyers may include advantageous clauses, such as waiving concrete referral or improved reorganisation regulations. Sometimes there are also simplified health checks. Since lawyers are often classified as a low-risk group, the premiums can be comparatively affordable.
