When is it worth taking out disability insurance?
March 20, 2024 | 40,00 EUR | answered by Ingo Gallenberg
Dear lawyer,
My name is Leonie Meyer and I have been working as a project manager in a medium-sized company for five years. Lately, I have been experiencing health problems that are slowly but surely pushing me to my limits. My doctor has advised me to look into disability insurance, as there is a possibility that I may not be able to continue working in my profession due to my health restrictions in the future.
I am worried that if I become disabled, I will not be financially protected and may not be able to cover my ongoing expenses such as rent, living costs, and potential treatment expenses. Additionally, I am unsure if disability insurance is even necessary for me and if it is worth taking out such a policy.
Could you please advise me on whether it would be beneficial for me to take out disability insurance in my situation? Are there specific criteria I should consider in order to find the right insurance for me? What are the typical benefits included in disability insurance and how high should the monthly premiums be to ensure I am adequately covered in case of an emergency?
Thank you in advance for your support and I look forward to your expert advice.
Sincerely,
Leonie Meyer
Dear Mrs. Meyer,
Thank you for your inquiry regarding disability insurance. It is good that you are thinking early about your financial security in case of disability. Disability insurance can indeed provide important protection in such situations.
First and foremost, it is important to determine if disability insurance is advisable in your situation. As a project manager in a medium-sized company, you certainly have a high level of responsibility and may be exposed to many stress factors. If your health problems are already affecting your ability to work now and there is a risk that you may not be able to continue your job in the future, disability insurance is definitely worth considering.
When choosing disability insurance, there are several criteria to consider. Firstly, it is important that the insurance provides a sufficiently high disability pension to cover your ongoing expenses. The amount of this pension should roughly correspond to your current net income in order to maintain your usual standard of living in case of disability. Additionally, make sure that the insurance uses a comprehensive definition of disability to actually receive benefits in case of need.
Disability insurance usually includes benefits such as a monthly disability pension, a possible guaranteed insurability option, waiver of abstract reference, and premium waiver in case of disability. The amount of monthly premiums depends on various factors such as your age, health condition, occupation, and the desired disability pension amount. It is advisable to seek advice from a professional to find the right insurance for your individual situation.
I hope that this information was helpful to you. If you have any further questions or require more detailed advice, I am at your disposal.
Sincerely,
Ingo Gallenberg
