Reasons for Occupational Disability: What You Need to Know to Prevent Existential Risks
19 May 2025
6
Minutes
Katrin Straub
CEO at nextsure
One in four employees in Germany becomes unable to work during their lifetime. The reasons for this are varied, but mental illnesses and musculoskeletal disorders top the statistics. Discover the causes and learn how you can secure your financial existence.
The topic in brief and concise terms
Mental illnesses are the most common cause of occupational disability, accounting for over 34 percent, followed by musculoskeletal disorders at around 20 percent.
One in four working people in Germany will become unable to work at least once during their career.
A private occupational disability insurance is essential, as the statutory reduced earning capacity pension is often not sufficient to maintain the standard of living.
The most common causes of occupational disability at a glance
The reasons for occupational disability are more diverse than many assume. Contrary to popular belief, accidents are only responsible for a small portion of cases, namely about seven to eight percent. Much more frequently, illnesses lead to people being unable to practise their profession. Mental illnesses rank first, accounting for around 35 percent. Disorders of the skeletal and muscular system follow with approximately 20 to 22 percent. Cancer is also a significant cause, at about 16 to 17 percent. Heart and vascular diseases play a lesser, yet not negligible, role with around seven percent. These figures show that occupational disability can affect anyone, regardless of the nature of their work. This underscores the need to secure one's ability to work.
Understanding mental illnesses as the main reason for occupational disability
Mental illnesses are by far the most common cause of disability, accounting for over 34 percent. For individuals under 50, this proportion is even higher, exceeding 35 percent. Conditions like depression or burnout have significantly increased in recent years and accounted for only about 20 percent of cases before 2010. This increase highlights the growing strain in the modern workplace. It is a misconception that only certain professional groups are affected; office workers and academics are also at high risk. It is advisable for everyone to engage with the topic of disability due to depression early on. Awareness of mental health and preventive measures are gaining increasing importance.
Musculoskeletal disorders: An underestimated risk
Diseases of the skeletal and musculoskeletal system are the second most common reason for occupational disability and affect about one in five people. This includes, for example, herniated discs, osteoarthritis, or rheumatism. Surprisingly, it's not only older people or those in physically demanding jobs who are affected; young people and office workers are increasingly suffering from back problems. Prolonged sitting, lack of exercise, and overweight are often the triggers. Even small changes in everyday life can have a preventive effect. The likelihood of occupational disability due to such ailments is significant. Ergonomic workplace design and regular exercise are important preventive measures.
Other relevant reasons and the role of pre-existing conditions
In addition to mental health issues and musculoskeletal problems, there are other significant reasons for occupational disability. Cancer and other malignant tumours account for about 17 percent of cases. Accidents, often presumed to be the main cause, only account for around seven percent of cases of occupational disability. Heart diseases and diseases of the vascular system also represent about seven percent. Pre-existing conditions play an important role when applying for occupational disability insurance. Insurers conduct a risk assessment where health status, age, and dangerous hobbies are queried. The concealment of pre-existing conditions can lead to a refusal of benefits. Therefore, an honest and complete answer to the health questions is essential. The following list shows common categories of pre-existing conditions that can impact insurance coverage:
Chronic diseases (e.g., diabetes, rheumatism)
Psychological predispositions or previous therapies
Significant cardiovascular problems
Serious past accidents
Existing addiction disorders
Diseases of the supportive and musculoskeletal system with permanent consequences
These factors can lead to risk surcharges, benefit exclusions, or, in rare cases, rejection of the application.
Do not underestimate the statistical likelihood of becoming unable to work
The likelihood of becoming unable to work due to disability during one's working life is higher than many think. On average, one in four workers in Germany becomes unable to work at least once. For thirty-year-old women today, the probability is 26 percent, and for men of the same age, it is 24 percent. The average age of onset of incapacity for work is 44 and 48 years respectively, which means that those affected often have many years left until regular retirement. These figures highlight the necessity of private insurance. The statutory disability pension often does not suffice to maintain the accustomed standard of living, as it generally amounts to less than a third of the last gross salary. Particularly for those born after the first of January 1961, the hurdles for receiving state benefits are high. Those who can perform any activity for less than three hours a day receive the full disability pension. A glance at specific examples of occupational disability can underscore the relevance.
Expert Depth: Legal Framework and Recent Rulings
The conditions under which an occupational disability insurance pays out are precisely defined in the respective insurance contracts. Usually, a payout is made when the insured person is likely unable to perform their last profession due to illness, injury, or more than age-related degeneration by at least fifty percent permanently (usually at least six months). The exact definition and degree of occupational disability can be crucial. Our expert tip: Pay attention to a clear and customer-friendly definition of occupational disability in your contract terms. Recent rulings show that the interpretation of insurance terms is often contentious. For example, the OLG Frankfurt ruled that a master plumber cannot be referred to a position as a caretaker (Case No. 7 U 113/20). The medical prognosis and precise documentation of the health condition are very important for the claim. In cases of mental illness, evidence can be complex. Insurers scrutinise applications closely; in 2022, about 80 percent of claims were approved. Rejections often occur because the required degree of disability of fifty percent was not met or there was a breach of pre-contractual disclosure duty (twelve percent of rejections). Only about two percent of cases go to court.
Recommendations for Action: How to Protect Yourself Properly
In light of the significant financial risks, early and appropriate protection against occupational disability is essential. Ideally, the amount of the occupational disability pension should cover seventy to eighty percent of the net income. Young and healthy individuals often benefit from more favourable contributions. Our expert tip: Take out occupational disability insurance as early as possible. This can already be sensible during training or studies, as there are often no or few pre-existing conditions that could lead to higher contributions or exclusions. In 2023, the average age of conclusion was just under 29 years. The following steps will help you choose the right protection:
Needs analysis: Determine the required pension amount.
Health questions: Answer all questions truthfully and completely.
Review contract terms: Look for customer-friendly clauses (e.g. waiver of abstract referral).
Compare providers: Obtain several offers.
Agree on dynamics: Ensure you have the option to adjust the pension without a new health check.
Set the term: The duration of benefits should ideally extend to the planned retirement age.
Careful planning and advice, such as that offered by nextsure, is crucial to be optimally protected in the event of an emergency and to understand the difference between occupational and general disability. Engaging with the reasons for occupational disability demonstrates the importance of comprehensive provision.
Conclusion and Your Next Step for Security
More useful links
The insurers, a portal of the German Insurance Association (GDV), provides information on the causes of occupational disability.
The GDV (German Insurance Association) provides seven facts about occupational disability insurance.
Statista provides detailed data on the distribution of causes of occupational disability in Germany.
The German Pension Insurance offers comprehensive statistics and reports on occupational disability.
A publication of the German Pension Insurance highlights the development of reduced earning capacity pensions over time.
The Federal Statistical Office (Destatis) offers press releases and current figures on the world of work and its challenges.
The Federal Institute for Occupational Safety and Health (BAuA) informs about the costs and impacts of incapacity for work.
Morgen & Morgen provides current statistics and analyses on occupational disability insurance.
FAQ
Why is disability insurance so important?
An occupational disability insurance is important because it secures your financial existence in case you can no longer perform your job for health reasons. The statistical probability of becoming unable to work is high (one in four), and state support is often inadequate.
When should one take out occupational disability insurance?
It is advisable to take out a disability insurance policy as early as possible, ideally as a pupil, student or trainee. At a young age, premiums are usually cheaper and there are less likely to be health issues that could lead to risk surcharges.
What are the most common causes of occupational disability among young people?
Mental health issues also play a significant role in young people. Additionally, accidents or serious illnesses can lead to early disability. Surprisingly, young people also suffer more frequently from back problems.
Does the occupational disability insurance cover burnout?
Yes, if burnout is medically diagnosed and results in you being unable to perform at least 50 percent of your work, and this is expected to last for at least six months, most disability insurance policies will provide benefits. Mental illnesses, which include burnout, are the most common reason for claims.
What happens if I conceal pre-existing conditions when taking out insurance?
Failing to disclose pre-existing conditions in health inquiries can have serious consequences. If the insurer discovers this (often only at the time of a claim), they can withdraw from the contract, dispute it, or refuse to provide benefits. This is known as a breach of the pre-contractual duty of disclosure.
How high should the disability pension be?
The disability pension should be sufficient to cover your ongoing expenses and maintain your standard of living. Experts usually recommend a pension amount of 70 to 80 percent of your current net income.
