Disability or Basic Ability Insurance: Making the Right Choice for Your Financial Security
7 May 2025
7
Minutes
Katrin Straub
Managing Director at nextsure
One in four employees becomes unable to work during their lifetime – an alarming figure that demands action. But which insurance coverage is the right one: occupational disability insurance (BU) or basic ability insurance (GFV)? This article examines both options, highlights the clear differences, and helps you find the optimal insurance for your individual situation.
The topic in brief and concise terms
The occupational disability insurance (BU) covers the ability to perform the most recently practiced profession, while the basic skills insurance (GFV) provides benefits in the event of the loss of defined essential skills.
The occupational disability insurance generally offers more comprehensive protection, but can be more expensive. The health care insurance is often cheaper and more accessible, but covers more specific risks.
Early and honest engagement with the topic, along with a thorough review of the contractual conditions, is crucial for optimal protection.
Quick Overview: Understanding the Key Differences Between Disability Insurance and Occupational Pension Plan
The occupational disability insurance (BU) pays out if you can no longer perform at least fifty percent of your most recently practiced profession. The cause, whether illness or accident, is irrelevant. In contrast, the basic ability insurance (GFV) pays out upon the loss of certain physical or mental basic abilities defined in the contract, such as seeing, speaking, or walking. Whether you can still practice your profession usually does not matter for the GFV benefit. The key difference, therefore, lies in the trigger for benefits: profession vs. ability. Choosing the right policy therefore requires a thorough analysis of your personal needs and risks. This comparison forms the basis for further detailed considerations.
Income Protection Insurance: Comprehensive Cover for Your Ability to Work
A disability insurance policy is considered the most comprehensive protection against the loss of ability to work. It steps in when you are unable to perform your profession due to illness, accident, or more than age-related decline, for at least six months, to less than fifty percent of your capacity. A major advantage is that it is related to your occupation and also covers mental illnesses, which are a common cause of disability. Ideally, the amount of the insured benefit should be eighty percent of your net income to maintain your standard of living. Pay attention to the insurer's waiver of the abstract referral. This means the insurer cannot refer you to another job that you could theoretically still perform. A thorough examination of the contract terms is essential in order to avoid pitfalls.
The key aspects of a good disability insurance:
Adequate benefit amount (at least eighty percent of net income).
Insurance coverage until the legal retirement age (currently usually 67 years).
Waiver of abstract referral.
Guarantees for additional insurance coverage upon certain life events (e.g. marriage, birth of a child, pay rise).
Worldwide insurance coverage.
Clear regulations for reporting and assessing a disability.
The complexity of the terms often makes expert advice essential. In the next section, we will take a closer look at the basic ability insurance.
The Basic Abilities Insurance: Targeted Protection of Fundamental Skills
The basic ability insurance (BAI) is an alternative or supplement to disability insurance (BU). It provides an agreed-upon pension if one or more of the basic abilities defined in the contract are lost. These abilities often include seeing, hearing, speaking, walking, standing, sitting, the use of hands, or even intellectual abilities. The benefit is paid regardless of whether you can still perform your job. An advantage can be the often lower premium compared to disability insurance, especially for those engaged in physical work. The health check is often less extensive, which can facilitate access for individuals with certain pre-existing conditions. However, the coverage is more specific and does not cover every cause of incapacity for work. Mental illnesses are often insured only through additional modules or not at all. The exact definition of insured abilities and the degree of impairment required for a benefit are crucial. These differences clearly indicate that BAI may not be the optimal solution for everyone.
Costs and Contributions: What influences the premium amount?
The costs for disability insurance (BU) or basic ability insurance (GFV) depend on various factors. In the case of disability insurance, the age at entry, health status at the time of application, the profession (risk group), the desired pension amount and the contract term play a significant role. Academics often pay less than craftsmen due to the lower risk of disability. In basic ability insurance, age, health, pension amount and contract term are also relevant. The profession usually has less impact here, as it concerns the loss of general abilities. Early conclusion is worthwhile: young and healthy people generally pay significantly lower premiums. A premium saving of up to fifty percent is not uncommon with early conclusion. Careful calculation and comparison of different offers are essential to find affordable and at the same time powerful coverage. The calculation of disability insurance can provide initial indications here. Now let's consider for whom each type of insurance is particularly suitable.
Expert Depth: Understanding Contract Details and Legal Aspects
When concluding a BU or GFV, checking the fine print is essential. A key point in BU insurance is the waiver of the abstract referral. According to § 172 of the Insurance Contract Act (VVG), the insurer can otherwise assess whether, despite being unable to work in your old job, you could carry out another occupation that corresponds to your training, experience, and previous standard of living. Many modern policies forego this clause. For the GFV, the definitions of the insured basic abilities and the criteria for their loss are crucial. Often, a loss of ability must be predicted to last at least six months. Our expert tip: Ensure clear and understandable wording in the terms and conditions, and have unclear passages thoroughly explained. The distinction from incapacity to work is also important. The tax treatment of contributions and pensions is another aspect. Contributions to independent BU and GFV can be claimed for tax purposes as other precautionary expenses within the limit amounts (§ 10 EStG), although these maximum amounts are often already exhausted by health and long-term care insurance contributions. Pensions from private BU and GFV contracts are generally taxed only on the yield component (§ 22 EStG). Recent court rulings, for example, on benefit denial, repeatedly highlight how important precise contract wording and correct fulfillment of obligations in the event of a claim are. The complexity of these topics underscores the value of professional advice.
Recommendations for Action: How to Find the Right Protection
The choice between occupational disability insurance and basic ability insurance is a very personal decision. Start with an honest assessment of your financial situation and individual risks. How much coverage do you need in the event of a loss of income? What physical or mental abilities are essential for your profession and daily life? Obtain several quotes and compare not only the prices but, above all, the benefits and terms. Use independent comparison portals and consider professional advice to find the optimal solution for you. A comparison of BAI and OI can assist with this. When applying, ensure you provide complete and truthful health information to avoid issues in the event of a claim. Early coverage is usually associated with lower premiums. Regularly review existing contracts, especially in light of professional or personal changes. Remember: the best insurance is the one that really works in an emergency and suits your needs.
Checklist for selecting the right insurance:
Determine your individual coverage needs (monthly pension, term).
Assess which risks (occupational disability, loss of basic abilities) are more relevant to you.
Compare offers from different insurers (premiums and terms).
Pay attention to important contract clauses (e.g., waiver of abstract referral in OI, clear definitions in BAI).
Fill out health questions truthfully and completely.
Check options for premium dynamics and benefit dynamics.
Get independent advice if needed.
With these steps, you're a big step closer to your optimal coverage. The final step is reaching out for an individual analysis.
Your next step towards financial security
The decision to choose the right coverage for your workforce or your basic skills is fundamental to your financial future. A careful evaluation and comparison of the options BU and GFV are essential. At nextsure, we support you in finding the solution that suits your life situation. Our mission is to offer you tailor-made and easily understandable insurance solutions. Use our expertise for your security. Request an individual risk analysis now: Have your insurance situation reviewed for free and receive specific optimization suggestions.
More useful links
The Deutsche Rentenversicherung provides statistics on disability pensions over time.
The Federal Statistical Office (Destatis) publishes press releases that can provide relevant data and facts.
The Robert Koch Institute (RKI) offers a study on the burden of disease in Germany and its regions, focusing on disability-adjusted life years (DALY).
The Federal Ministry of Labour and Social Affairs (BMAS) offers a brochure on rehabilitation and participation of people with disabilities.
The German Actuarial Association (Aktuar.de) publishes an article stating that one in four becomes unable to work.
The Federal Ministry of Health provides information on prevention topics.
FAQ
Wann leistet die Berufsunfähigkeitsversicherung?
Die Berufsunfähigkeitsversicherung leistet in der Regel, wenn Sie Ihren zuletzt ausgeübten Beruf infolge von Krankheit, Körperverletzung oder mehr als altersentsprechendem Kräfteverfall voraussichtlich für mindestens sechs Monate zu mindestens fünfzig Prozent nicht mehr ausüben können.
Welche Grundfähigkeiten sind typischerweise versichert?
Typischerweise versicherte Grundfähigkeiten sind Sehen, Hören, Sprechen, Gehen, Stehen, Sitzen, der Gebrauch der Hände, Arme oder Beine sowie manchmal auch intellektuelle Fähigkeiten oder die Fähigkeit zur Nutzung einer Tastatur. Der genaue Katalog variiert je nach Anbieter und Tarif.
Kann ich beide Versicherungen kombinieren?
Ja, eine Kombination ist grundsätzlich möglich, um einen sehr umfassenden Schutz zu erzielen. Allerdings kann dies auch zu entsprechend höheren Beiträgen führen. Es sollte geprüft werden, ob der Mehrwert die zusätzlichen Kosten rechtfertigt.
Was bedeutet "abstrakte Verweisung" bei der BU?
Abstrakte Verweisung bedeutet, dass der Versicherer Sie im Leistungsfall auf einen anderen Beruf verweisen könnte, den Sie theoretisch noch ausüben könnten – auch wenn Sie keine konkrete Stelle finden. Gute BU-Tarife verzichten auf diese Klausel.
Sind die Beiträge steuerlich absetzbar?
Beiträge zu selbstständigen BU- und Grundfähigkeitsversicherungen können als sonstige Vorsorgeaufwendungen im Rahmen der gesetzlichen Höchstbeträge (§ 10 EStG) steuerlich geltend gemacht werden. Diese sind jedoch oft bereits durch Beiträge zur Kranken- und Pflegeversicherung ausgeschöpft.
Wie wichtig sind wahrheitsgemäße Gesundheitsangaben?
Wahrheitsgemäße und vollständige Gesundheitsangaben bei Antragstellung sind extrem wichtig. Falsche oder unvollständige Angaben können dazu führen, dass der Versicherer im Leistungsfall vom Vertrag zurücktritt oder die Leistung verweigert (Verletzung der vorvertraglichen Anzeigepflicht).
