Wann zahlt die BU nicht? (#291)
A German finance podcast episode discussing why disability insurance (BU) claims get rejected, explaining the 50% work capacity threshold and common pitfalls. The hosts also answer listener questions about employer retirement plans, real estate financing, and investment allocation for employees.
Summary
This episode of a German finance podcast focuses on disability insurance (Berufsunfähigkeitsversicherung/BU) claim rejections and prevention strategies. The hosts explain that BU insurance pays when doctors medically forecast at least six months of inability to work, with the crucial 50% threshold meaning inability to perform at least half of one's actual job duties. They present two detailed case studies: a 23-year-old with severe depression whose claim was rejected due to undisclosed prior medical history (even though she was unaware of a teenage depression diagnosis in her records), and a cook with back problems who could still perform 60% of his tasks and thus didn't meet the 50% disability threshold. The hosts emphasize the importance of thoroughly reviewing medical records before applying and honestly completing questionnaires, as insurers actively protect against fraud. They note that mental health issues are now the most common cause of disability claims. The episode also addresses listener questions about balancing employer retirement contributions with ETF investing (recommending roughly 50-50 splits), avoiding 100% external financing for real estate due to increased risk and costs, and investment allocation strategies for employees who have more pension security.
About this episode
Etwa jeder fünfte Antrag auf Berufsunfähigkeit wird abgelehnt. Das ist besonders ärgerlich, wenn Du jahrelang teure Prämien gezahlt hast. Wir schauen uns 3 Fälle an und klären, wie Du das vermeiden kannst. Worauf Du achten solltest, erfährst Du in dieser Folge Finanzen Ganz Einfach mit Saidi und Sophie von Finanztip.
Key Insights
- Around 20% of disability insurance performance contracts result in claim rejections, often costing policyholders thousands of euros in premiums
- Disability insurance pays when doctors medically forecast at least six months of work inability, not after six months have already passed
- The 50% disability threshold refers to inability to perform at least half of one's actual job duties, not any job, due to 'abstract reliability' provisions in good policies
- Mental health issues have become the most frequent reason for disability claims, reflecting increased social acceptance of discussing psychological problems
- Insurance companies can void contracts for 'fraudulent misrepresentation' even when applicants were genuinely unaware of prior diagnoses in their medical records
- Many people don't know what's documented in their medical records, making it crucial to request and review these documents before completing insurance applications
- For employer retirement plans, a 50-50 split between company contributions and personal ETF investing is recommended, with higher employer contribution rates justifying more allocation to company plans
- 100% external financing for real estate investment is discouraged due to higher interest rates, increased risk, and the need for at least 10-20% down payment plus additional costs
Topics
Transcript
You're sick and can't work anymore and now your job disability insurance doesn't pay. Oh, that's of course bad. Because you probably have a few years, if not even decades, of job disability insurance. And that thing is not very cheap either. At least 50 euros a month. Then you have a few thousand euros, in the worst case, just washed the drain. Right. And even in around 20% of the performance contracts, it comes to a rejection. We will clarify why this happens and how you can prevent it today so that it doesn't happen to you either. Is the B.U. money thrown out? Yes, let's talk about it in today's episode of Finanzen ganz einfach. And at Finanzen…
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