Income Protection Insurance
Why do I need Income Protection?
Ability to earn income is your biggest asset, just multiply your current gross income by the years until retirement. Take a 35 year-old with an annual income of €40,000 and plans to retire at age 65. Potential earnings between now and then is €1,200,000.
Imagine other assets with this value: a house, luxury car, jewellery; you would naturally insure these items against destruction or loss. So why not the asset of “earning income”?
What do I get paid if I am ill or disabled ?
Employers in Germany are legally obliged to pay your income for a period of 43 days in the event of your inability to work. Publicly insured employees receive another 78 weeks of Krankengeld, a per diem that is capped at a relatively low level. This in total is usually peanuts compared to your original salary.
Self-employed workers do not enjoy any public support (except if they pay extra for the Krankengeld, but this is rare).
If you become entirely disabled and can not work in any capacity for at least 3 hours a day, you will get an Erwerbsunfähigkeitsrente from the government, which pays out only in small monthly amounts.
Government support is insufficient for most people and will only become available should you be unable to carry out ANY form of work, not just your current occupation.
• What would happen if my income suddenly stopped because of ill health?
• How long could my family or I sustain our needs financially?
• How long would my employer pay me if I was unable to work?
If illness strikes and you are unable to work, income protection can:
• Provide regular income for everyday living.
• Ensure you continue to meet your monthly mortgage repayments and household bills.
• Help you maintain your current standard of living.
How does it work?
There are different methods of income protection. Some pay out a per-diem as long as you stay ill, others pay a monthly pension. Others pay a lump sum if you contract any of a large number of clearly defined critical illnesses (cancer, stroke, heart attack, etc). Other insurances cover the loss of important faculties such as hearing, seeing or walking, and still others for accident-related loss of limbs or faculties.
Knowledge of these different options is essential, right down to the fine-print. We have that knowledge, and can use it to find the best plan for you and your family.
For further information please contact us