What is it about?
Occupational disability insurance can pay an agreed monthly benefit when you meet the policy’s criteria for being unable to practise your occupation.
On this page
- How useful is occupational disability insurance?
- How does BU work?
- Who needs occupational disability cover?
- Is there a statutory reduced earning capacity pension?
- What can cause occupational disability?
- How much does BU cost?
- What should I check before applying?
- Which policy clauses matter?
- Psychotherapy or previous conditions: what should I do?
- Alternatives to BU
- Switching BU policies: what should I consider?
How useful is occupational disability insurance?
If you depend on earned income, a prolonged inability to work can leave a substantial gap. Rent, family costs and retirement saving continue. BU can reduce that gap through an agreed monthly benefit. It does not cover every income change, but relevant health-related events meeting policy conditions. We compare expenses, reserves and existing benefits.
How does BU work?
BU assesses your last occupation as performed before health impairment. Many tariffs require at least 50% occupational disability expected to last six months, but the actual policy definition governs. An accepted claim pays the agreed benefit, often with premium waiver. A sick note or temporary inability to work does not automatically meet BU conditions.
Who needs occupational disability cover?
It is particularly relevant if you cannot sustain commitments without earned income, including employees, self-employed people and those starting work. Illness can prevent office work too. Early cover for pupils or students may be useful but should suit later occupational protection. Civil servants should also assess a suitable incapacity-for-service clause.
Is there a statutory reduced earning capacity pension?
The statutory pension generally assesses ability to work across the labour market, rather than only your former occupation. Full reduced earning capacity normally means under three hours daily; partial capacity means three to under six hours. Insurance-history requirements and exceptions also apply. Eligibility and amount may differ greatly from your needs, so this is not automatically a substitute for BU.
What can cause occupational disability?
Accidents are not the only cause. Mental health conditions, musculoskeletal disease, cancer and other illnesses play important roles. The relevant impairment depends on your work and policy definition. Accident insurance generally covers accident consequences rather than the same range of illnesses. These risks should therefore be distinguished when protecting income.
How much does BU cost?
Premiums depend on entry age, occupation, health, benefit amount and term; hobbies and options may also matter. Distinguish the current payable premium from the contractual gross premium, since bonus offsets can change. Comparing prices without equivalent benefits and acceptance terms is misleading. We also assess exclusions and premium loadings.
What should I check before applying?
Benefits should reflect expenses and commitments, with a term matching your planned working life. Clear benefit definitions, indexation and cover-increase options matter. Answer health and occupation questions fully and accurately within their requested scope. An anonymised preliminary risk enquiry can help clarify acceptance terms, but is not a binding offer.
Which policy clauses matter?
We examine waiver of abstract occupational referral, prognosis periods and retrospective benefits. Rules for career changes, part-time work, parental leave and business reorganisation also matter. Cover increases without new health assessment and treatment of other work actually performed should be reviewed. A sick-leave clause may supplement cover but differs from BU entitlement. Full policy wording governs.
Psychotherapy or previous conditions: what should I do?
Previous illness or psychotherapy does not always mean rejection. Assessment depends on diagnosis, course, treatment, requested history period and insurer. Gather relevant records and answer truthfully. An anonymised enquiry can reveal different options. Exchange medical details through an agreed protected channel; a topic is enough for first contact. Acceptance cannot be guaranteed in advance.
Alternatives to BU
If suitable BU is unavailable or unaffordable, options may include general incapacity, specified basic-ability or critical illness cover. These use different benefit triggers and are not automatically equivalent replacements. Accident insurance and sick-pay cover address limited risks, not every income gap. We compare actual conditions with your work rather than simply reducing the premium.
Switching BU policies: what should I consider?
A new policy may improve terms but normally requires fresh assessment using current age and health. Exclusions, loadings or weaker guarantees may outweigh a lower premium. We first review adjustments to existing cover. Coordinate cancellation only after suitable replacement cover is confirmed with its start and scope clear, to avoid an unintended protection gap.
Who is it for?
For working people and those starting their careers who depend on their earned income.
What we look at together
- Monthly benefit and policy term
- Occupation, health questions and exclusions
- Benefit increases and policy conditions
What helps for our first conversation?
- Existing policy
- Occupation and income overview
- Regular expenses and existing protection
Your topic is enough for a first message. We agree on a suitable way to exchange personal documents or medical details later.