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Disability Insurance
reasons for occupational disability
Reasons for Occupational Disability: What You Need to Know to Prevent Existential Risks
One in four employees in Germany will become unable to work during their lifetime. The reasons for this are varied, but mental health issues and musculoskeletal disorders top the statistics. Discover the causes and how you can secure your financial future.
The topic in brief and concise terms
Mental illnesses are the most common reason for occupational disability, accounting for over 34 percent, followed by musculoskeletal disorders at around 20 percent.
Every fourth employed person in Germany becomes unable to work at least once during their career.
A private disability insurance is essential because the statutory disability pension often does not suffice to maintain the standard of living.
An overview of the most common causes of occupational disability
The reasons for occupational disability are more varied than many assume. Contrary to popular belief, accidents account for only a small portion of cases, approximately seven to eight per cent. Much more frequently, illnesses lead to people being unable to continue their profession. Mental illnesses are at the forefront, with around 35 per cent. Diseases of the skeletal and muscular system follow, with around 20 to 22 per cent. Cancer is also a significant cause, with about 16 to 17 per cent. Heart and vascular diseases play a lesser, yet significant role, at around seven per cent. These figures show that occupational disability can affect anyone, regardless of the type of work. The need to secure one's ability to work is therefore underscored.
Understanding mental illnesses as the main reason for occupational disability
Mental illnesses, at over 34 percent, are by far the most common cause of occupational disability. Among people under 50 years old, this share is even over 35 percent. Conditions such as depression or burnout have increased significantly in recent years, accounting for only about 20 percent of cases before 2010. This rise highlights the growing strain in the modern work environment. It is a misconception that only certain professions are affected; even office workers and academics are at high risk. It is advisable for everyone to engage with the topic of occupational disability due to depression early on. Increasing awareness of mental health and preventive measures are becoming more important.
Musculoskeletal diseases: An underestimated risk
Diseases of the skeletal and musculoskeletal systems are the second most common cause of occupational disability and affect roughly one in five people. These include, for example, herniated discs, osteoarthritis, or rheumatism. Surprisingly, it is not only older people or those in physically demanding jobs who are affected; young people and office workers are also increasingly suffering from back problems. Prolonged sitting, lack of exercise, and being overweight are often the triggers here. Even small changes in daily life can have a preventive effect. The likelihood of occupational disability due to such ailments is significant. An ergonomic workplace design and regular exercise are important preventive measures.
Further relevant reasons and the role of pre-existing conditions
In addition to mental illnesses and musculoskeletal issues, there are other significant reasons for occupational disability. Cancer and other malignant tumours account for about 17 percent of cases. Accidents, often assumed to be the main cause, are responsible for only around seven percent of occupational disability cases. Heart diseases and vascular system disorders also account for about seven percent. When applying for an occupational disability insurance, pre-existing conditions play an important role. Insurers conduct a risk assessment that includes questions about health status, age, and hazardous hobbies. Failing to disclose pre-existing conditions can lead to a denial of benefits. Therefore, answering the health questions honestly and thoroughly is essential. The following list shows common categories of pre-existing conditions that can affect coverage:
Chronic illnesses (e.g., diabetes, rheumatism)
Mental predispositions or past therapies
Significant cardiovascular problems
Serious past accidents
Existing addictions
Diseases of the musculoskeletal system with permanent consequences
These factors can lead to additional premiums, exclusions of benefits, or, in rare cases, the rejection of the application.
Expert depth: Legal frameworks and current judgments
The conditions, when an occupational disability insurance pays out, are precisely defined in the respective insurance contracts. Payment is usually made if the insured person can no longer perform their most recently practiced profession due to illness, injury, or more than age-appropriate debilitation, prospectively on a permanent basis (mostly at least six months) by at least fifty percent. 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 the insurance terms is often contentious. For example, the OLG Frankfurt decided that a master plumber cannot be referred to a position as a caretaker (Case No. 7 U 113/20). The medical prognosis and exact documentation of the health condition are very important for the entitlement to benefits. In cases of mental illness, providing proof is often complex. Insurers scrutinise applications thoroughly; in 2022, about 80 percent of benefit claims were approved. Rejections often occur because the required degree of disability of fifty percent was not reached or there was a breach of pre-contractual disclosure obligations (twelve percent of the rejections). Only about two percent of cases go to court.
Recommendations for Action: How to Secure Yourself Properly
Given 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 net income. Young and healthy people often benefit from lower contributions. Our expert tip: Take out occupational disability insurance as early as possible. This can already be beneficial during training or studies, as there are often few or no pre-existing conditions that could lead to higher premiums or exclusions. In 2023, the average age of concluding a policy 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 reference).
Compare providers: Obtain multiple offers.
Agree on dynamics: Ensure you can adjust the pension without a new health check.
Set the term: Ideally, the benefit period should last until the planned retirement age.
Careful planning and advice, as offered by nextsure, is crucial to be optimally protected in case of an emergency and to understand the difference between occupational and incapacity for work. Understanding the reasons for occupational disability shows how important comprehensive provision is.
Conclusion and Your Next Step for Safeguarding
The reasons for occupational disability are varied, with mental illnesses and musculoskeletal disorders being the most common causes and can affect anyone. Statistically speaking, one in four working individuals becomes occupationally disabled, highlighting the significant importance of private insurance. Legal coverage alone often does not provide adequate protection from financial consequences. A privately arranged, needs-based occupational disability insurance is advisable and an essential component of your financial security. Act now to protect your ability to work and your standard of living. Request an individual risk assessment now: Have your insurance situation checked free of charge and receive specific recommendations for optimisation.
More useful links
The Versicherer, a portal of the German Insurance Association (GDV), provides information on the causes of occupational disability.
The GDV (German Insurance Association) offers seven facts about occupational disability insurance.
Statista delivers detailed data on the distribution of causes of occupational disability in Germany.
The German Pension Insurance provides comprehensive statistics and reports on occupational disability.
A publication by the German Pension Insurance examines 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) provides information on the costs and effects of incapacity for work.
Morgen & Morgen offers current statistics and analyses on occupational disability insurance.
FAQ
Why is an occupational disability insurance so important?
An occupational disability insurance is important because it secures your financial existence in case you can no longer practice your profession due to health reasons. The statistical likelihood of becoming unable to work is high (one in four), and the state's support is often insufficient.
When should you take out an occupational disability insurance?
It is advisable to take out an occupational disability insurance as early as possible, ideally already as a pupil, student, or trainee. At a young age, the premiums are usually lower and health issues that could lead to risk surcharges are less common.
What are the most common causes of occupational disability among young people?
Even among young people, mental illnesses play a significant role. In addition, accidents or severe illnesses can lead to early occupational disability. Surprisingly, young people also suffer more frequently from back problems.
Does occupational disability insurance cover burnout?
Yes, if burnout is medically diagnosed and results in you being unable to practice your occupation by at least 50 percent, and this is expected to last for at least six months, most occupational disability insurances will cover you. Mental illnesses, including burnout, are the most common reason for payout.
What happens if I hide pre-existing conditions when taking out a policy?
Concealing pre-existing conditions on the health questionnaire can have serious consequences. If the insurer discovers this (often only at the time of the claim), they can cancel the contract, contest it, or refuse the benefit. This is called a breach of the pre-contractual duty of disclosure.
How much should the occupational disability pension be?
The occupational disability pension should be calculated to cover your ongoing costs and secure your standard of living. Experts generally recommend a pension amount of 70 to 80 percent of your current net income.
