Functional disability insurance 

In order to cover the existence-threatening risks and the loss of workforce, it is advisable to take out occupational disability insurance. This insurance protects your income if you can no longer work in your last job for health reasons.

For some groups of people, however, the contributions for the BU protection are too high and meaningful protection is therefore not possible. In occupational disability insurance, it is therefore often said: Higher risk also means higher contributions. This is especially true for professions with a high proportion of physical activity. These include, for example, craftsmen, nurses, salespeople and service staff. A basic capacity insurance (functional disability insurance) has been specially designed for this group of people by some insurers, which is tailored to the needs of the customer and also affordable.

This functional disability insurance (also called multi-pension) is usually a basic ability insurance, which – depending on the tariff – can be supplemented by certain service modules – for example, benefits can be paid in the event of illness of certain organs, need for care, accidents or other serious illnesses. There is no direct connection to the job or the labor market, but the performance triggers can, directly or indirectly, mean that a job can no longer be carried out.

Material or life product

Functional disability insurance can be calculated on the basis of life insurance or property insurance.

A material product usually offers affordable entry premiums, which, however, cannot be guaranteed over the term. The insurer must also expressly waive its ordinary right of termination. As a rule, the forecast period must be permanent and “irreversible” (= irreversible change in the state of health) and changes of occupation must be reported. The “basic product” here is usually accident insurance, which pays the insured pension from a 50 percent disability. This can be supplemented by building blocks for the areas of organ damage, need for care, basic skills and / or serious illnesses.

A life product has higher entry premiums than a material product, but offers stable premiums due to the long-term calculation. As a rule, the forecast period must be 12 months, changes of occupation do not have to be notified, there are no waiting times and the insurer has no proper right of termination. The “basic product” here is usually a basic skills insurance that pays a pension from the loss of special basic skills (in contrast to normal basic skills insurance, the loss of basic skills is sufficient here!). This can be supplemented with modules for the areas of need for care and / or serious illnesses.

Minimum standards


Due to the variety of products and the very special contract forms, only a few minimum standards can be applied to all tariffs, for this reason there is a subdivision into life and material products:

Minimum standard material product:

  • Waiver of the ordinary right of termination
  • Benefit trigger: accident disability of at least 50%
  • Performance triggers: Loss of basic skills
  • Benefit trigger: Dependency
  • Performance trigger: Cancer
  • Performance triggers: Organ diseases
  • Service trigger: Mental or mental illnesses that lead to permanent care, guardianship or placement in a closed facility
  • Invalidity: Improved member tax
  • Invalidity: Extended definition of an accident
  • Cancer: performance already in the 1st stage / from the 1st degree (note the exclusions according to the conditions)
  • Waiver of waiting time in the case of need for care and accident pension

Minimum standard of life product:

  • Performance trigger: Loss of function of a basic ability
  • Performance trigger: loss of function of a hand
  • Performance trigger: Loss of function of an arm
  • Performance trigger: residual vision 5% or 15 ° field of view
  • Performance trigger: Moderate dementia
  • Benefit trigger: Dependency according to ADL
  • Performance trigger: Limitation of mental performance
  • Forecast period 12 months
  • No waiting time from the start of insurance for pension payments
  • Start of service in the absence of a forecast from the 1st month
  • No reporting deadline, retroactive benefits for proven periods of impairment
  • Change of occupation or employment does not have to be reported


Good products in this area include the Volkswohl Bund and Barmenia (Adcuri) Versicherung. We would be happy to advise you in detail on this topic in a personal meeting.

Any questions?

Ask our experts without obligation.

We help you to find the right insurance coverage. Gladly in person in our office in Berlin, by phone or email.