Protect Your Income Before It Disappears.
Income protection insurance, called Berufsunfähigkeitsversicherung or BU in Germany, provides a monthly pension if you can no longer work in your current profession due to illness, injury or mental health conditions.
Especially important for employees, freelancers, self-employed professionals and expats whose lifestyle depends on their monthly income.
Your income is usually your biggest financial asset.
Your salary or business income pays for rent, mortgage, food, family, investments, retirement savings and your lifestyle. If your ability to work disappears, the financial damage can be much larger than a damaged car, phone or laptop.
Do not wait until your health changes.
BU applications require health questions. Once you have diagnoses, treatments or exclusions, getting strong coverage can become harder, more expensive or impossible. The best time to check BU is while you are healthy.
What disability insurance can do for you.
A well-structured BU policy gives you financial independence if illness or injury prevents you from continuing your profession.
Monthly income replacement
The policy pays a monthly pension so you can cover living expenses and protect your financial stability.
Physical and mental causes
BU can cover physical injuries, chronic illness, cancer, burnout, depression and other insured conditions.
Flexible policy design
Choose the monthly pension amount, insurance period, dynamic increases and additional options.
Independent from state support
BU gives you a private safety net that is not dependent on limited public disability benefits.
Inflation protection
Dynamic increases can help your insured pension keep pace with income growth and rising costs.
Tax planning option
BU can sometimes be combined with retirement or tax-saving concepts. The right structure depends on your personal situation.
What happens when your income suddenly drops?
Many expats assume the German system will fully protect them. In reality, the gap between your current income and public benefits can be massive — especially for high earners, families and self-employed people.
What could be missing?
- Enough money for rent or mortgage
- Protection for your children and partner
- Contributions to retirement savings
- Budget for food, utilities and daily life
- Financial stability during long recovery periods
How income protection works without private BU.
Germany has public protection systems, but they are not designed to fully replace a professional income.
First 6 weeks
Employees normally receive continued salary payments from their employer during the first weeks of illness.
Krankengeld phase
After that, statutory health insurance may pay sick pay. It is limited and usually below your normal net income.
After long-term illness
You may need to apply for public disability pension. The assessment is based on your ability to work on the general labour market.
Your lifestyle needs more than basic state support.
Even with an employment contract and public coverage, a long illness can create a serious income gap. For self-employed expats and freelancers, the situation can be even more difficult if no private protection exists.
- Ongoing rent, mortgage and utility payments
- Children, partner and family commitments
- Retirement contributions and long-term savings
- Private medical or recovery-related costs
- Peace of mind during a difficult health situation
Income protection is essential when your life depends on your work income.
The more your monthly budget depends on your profession, the more important a proper BU concept becomes.
Employees
Especially relevant for professionals with strong salaries, high living costs, mortgages or family responsibilities.
Freelancers
Freelancers and self-employed people often lack employer safety nets and need a private income protection strategy.
Knowledge workers
Burnout, depression, back problems and chronic conditions can affect office jobs just as much as physical professions.
Families
If your partner or children rely on your income, BU helps protect their lifestyle and security.
Homeowners
A mortgage should not depend only on your ability to work. Income protection helps protect your home.
Expats
Expats need clear guidance because public benefits, insurance terms and German paperwork can be difficult to understand.
Make sure your policy protects your current profession.
A strong BU policy should define Berufsunfähigkeit based on your actual profession and your real work activities. This is the key difference between proper income protection and weaker alternatives.
- Protection based on your current profession
- No weak wording that pushes you into any other job
- Clear claim rules and transparent conditions
- Insurance period ideally until 67
- Monthly pension amount matched to your income
What a good BU concept can look like.
The right setup depends on age, profession, income, health status and your long-term plans.
- Monthly premium can start around 70 € depending on age, job and health
- Often 2,000 € to 3,000 € or more monthly BU pension depending on income
- Coverage until 65 or ideally 67
- Support and explanation in English
- Optional combination with retirement or tax-saving structures
What insurers will usually check.
BU applications are more detailed than many other insurance applications. Preparation matters.
Health history
Insurers usually ask about diagnoses, medication, treatments, therapy, operations and doctor visits.
Profession
Your exact job, duties, travel, physical work, management tasks and office share influence pricing and acceptance.
Desired pension
The monthly BU pension should match your actual income gap and be high enough to protect your lifestyle.
Hobbies
Risky sports or dangerous hobbies can influence exclusions, pricing or acceptance.
Future increases
Dynamic increases and guaranteed upgrade options can help adapt coverage as your income grows.
Contract wording
The cheapest tariff is not always the best. Claim conditions and policy wording are crucial.
We guide you through the process step by step.
BU is one of the most important and most complex insurance contracts in Germany. We help you avoid common mistakes and understand what you are signing.
- Plain-English explanation of German BU terms
- Review of profession, income and desired pension
- Preparation of health questions and documentation
- Comparison of suitable providers and policy wording
- Support from application to final policy decision
To prepare your BU check, please share:
- Your age and profession
- Monthly or annual gross income
- Desired monthly BU pension
- Current health status and important medical history
- Existing insurance contracts, if any
- Whether you are employed, self-employed or freelancing
Protect your income with German Sherpa.
Book a free consultation. We check your situation, explain your options clearly and help you build an income protection concept that fits your life in Germany.
Clarity Starts With Structure.
We advise expats who live and work in Germany.
