Verbraucherzentrale recommends 80 percent rule for disability insurance

The Verbraucherzentrale recommends that occupational disability insurance (Berufsunfähigkeitsversicherung) payouts should ideally cover at least 80 percent of an individual's current net income. This guidance aims to prevent financial hardship for those unable to work due to accidents or serious illness.

For individuals born after January 1, 1961, the statutory pension insurance only provides an earned income reduction pension (Erwerbsminderungsrente), which the Verbraucherzentrale notes often falls below the basic security level. Statistics indicate that average disability pensions have historically been as low as 400 euros per month, which is frequently insufficient for living expenses.

Consumers are advised to seek individual counseling, such as through the Verbraucherzentrale, because premium and benefit differences between insurance providers can be as high as 200 percent for similar coverage levels.