Insuring Your Work Force

To all young professionals, family providers, single earners and (future) real estate owners: What if we told you that your most valuable possession is not anything you might own – but your workforce?

Our daily lives depend on the ability to work – and to earn money. Unless you have a sufficient passive cashflow, it is our chance to provide our little ones with food, to cover the rent and to indulge in our favourite activities.

So, what would happen, if health conditions make it impossible to work? And what can you do today to make sure you can uphold not only your own living standard but maybe even your family´s or your business?

Vocational disability:A diagnosis that changes your (financial) life

By today, 25 % of all academics in Germany are unable to work due to health issues at least once in their lives. For non- academic professions, the proportion is even more substantial.

Workforce Insurance

Propability of becoming vocationally disabled until age 65

But unlike many think, this high quota is not due to accidents but the consequence of our modern lifestyle and its looming threats:

a bad posture that leads to long-term back issues
the rising cancer rates
and of course, the constant bombardment of E-mails, messages, and professional hurdles that lead to mental exhaustion or even burnout.

Causes of Vacational Disability for Academics

These risks affect the job performance of so many people, that Germans even have a name for it: “Berufsunfähigkeit”, or vocational disability. If you have a medical condition and within six months lose over 50% of your ability to work then you are most likely to be diagnosed as “vocationally disabled”.

The consequences – and why they hit expats especially hard

Long-term sickness generally entails the loss of your working income – and thus the loss of your living standard: even basic expenses like mortgage and food can become a challenge. Like a house of cards, suddenly the entire structure comes tumbles down.

Although some people are eligible for minor statutory aids, these are nowhere near a substitute for your income. On top, especially new expats do not get any coverage at all: to enjoy even this fragmentary safety net, you have to have paid into the social security system.

What is more, if you happen to have insured yourself against accidents, more often than not this coverage is unfortunately insufficient and cannot replace the value of workforce insurance.

The conditions a Germany workforce insurance offers are renowned all across the world. If you are insurable for the companies offering wide coverage around the globe this will definitely be a significant advantage for the future.

Is there anything you can do about it?

Yes! And the keyword is workforce insurance (Ger. Berufsunfähigkeitsversicherung). It does not only provide you with monthly income during your time off but this coverage could, if bitterly necessary, stretch until retirement age.

It pays off even more for those seeking to buy real estate: since you can prove a financial safety net, you are eligible for better financing conditions that save you money in the long run!

It is such an elemental risk, that the German government compels people as young as students to take care of insuring their health status. It is one of the four pillars when it comes to fundamental insurances in Germany.

Some insider tips:

1. The earlier, the better!

The three factors that determine whether you can have this insurance are your age, health and job status. The good news: once you have decided on the insurance, you actually get to keep these conditions, even when you age, fall sick, or change jobs.

If you are currently an employee and are planning on becoming self-employed soon, it is likely that you are offered better conditions now due to your occupational group. This is an absolute basis every self-employed person should take care of as soon as possible.

2. Individual opportunities

Worried that your medical record might get in the way? No worries, this is why we always find out individually with each client which options they have and at which cost through an anonymous health check.

3. An added bonus

To make the most out of it, the workforce insurance can be combined with long-term investment – and thus provide a convenient tax return at the end of each year! This cannot be said for other insurances.

Are you now wondering what your options really are? Would you like to get your insurability checked and find the best plan for you or your family? Do you want to learn more about how this might fit into your individual financial plan?

Get in touch and we will schedule a session with the investment specialist best suited for your individual needs. Looking forward to consulting you!