Those who lose their ability to work due to accident or illness often face financial ruin. Disability insurance (BU) can cushion these consequences and is also in increasing demand. Apparently, only a few people know that you can buy such a policy before you are halfway through your professional life.
Only one in two people know that self-employed workers (52 percent) or part-time employees (51 percent) could be insured with a BI policy. Only 19 percent know that students can purchase such insurance, although they are still in academic training, and that this is also possible for schoolchildren, although only twelve percent. This is the result of a survey carried out by LV 1871 together with Civey, for which 2,500 people were interviewed in September.
“It is worth taking out disability insurance, especially when you are young. Pupils, students and trainees do not usually have previous illnesses. Risk assessment is not an obstacle for them. This means they can get low-cost insurance and benefit from lower monthly premiums with attractive benefits throughout their working lives,” says Iris Bauer, Director of Product Management and Development at LV 1871.
In addition, activities such as pupils and students are among the low-risk occupational groups. If you then work in a significantly higher risk job, the contribution will still be calculated based on the low risk entry level activity.
BU pension increases quickly
However, when taking out BU insurance during your studies, there are some pitfalls you need to be aware of. The rate selected must include a post-insurance guarantee for the period after graduation. Universa life insurance is currently pointing it out. Almost half a million people completed their studies in 2020. Anyone who subsequently gets a job and earns good money from it must also adjust their contractual BU benefit to the change in standard of living.
In order for it to be increased without a new medical check-up, the corresponding complementary insurance guarantee must be anchored in the conditions. According to the Nuremberg insurer, illnesses that have occurred in the meantime do not lead to a risk surcharge or exclusion of benefits, nor to a refusal of the application. However, you should not wait too long, as most rates allow a period of between three and six months from the end of your studies. Universa lists life events such as marriage, having children, buying your own home and becoming self-employed as other important reasons for supplemental insurance.
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