How much does German BU insurance cost per month?

For €1,500 BU pension, a 30-year-old office worker (group 1) pays ca. €35–45/month, a craftsman (group 4) ca. €100–130/month. Premium rises with age, occupation group and dynamic adjustment.

How high should my BU pension be?

Rule of thumb: 60–80 % of net income. At €2,500 net income that is €1,500–2,000 BU pension. A lower pension leaves a hard coverage gap, since the statutory disability pension typically falls short.

Until what age should the BU contract run?

At least 65, ideally 67 — matching the statutory pension age. A lower end age saves premium but leaves a coverage gap.

What is the premium dynamic for?

A premium dynamic (2–3 % p.a.) automatically raises premium AND BU pension every year. The contract stays adequate as inflation and salary grow — no new medical exam needed.

Does the statutory disability pension replace a BU policy?

No. The full statutory disability pension is only about 30–35 % of last gross income and pays only if you cannot work in any job for more than 3 hours a day. BU already pays at 50 % disability in your last actual occupation.

What should I look for in a tariff?

Waiver of abstract reference (mandatory), AU clause (benefit on long-term sick leave), supplementary insurance guarantee without medical exam, deferment option, worldwide benefit. Ratings by Franke und Bornberg or Morgen & Morgen help when comparing.

German Disability Insurance 2026: Premium, BU Pension and How to Choose

One in four people in Germany becomes occupationally disabled before reaching the statutory pension age — through illness, mental health issues or accidents. The statutory disability pension (Erwerbsminderungsrente) covers only a fraction of income. A private occupational disability insurance (Berufsunfähigkeitsversicherung, BU) protects you from financial collapse. Our BU calculator shows in seconds what cover costs you.

What is BU insurance?

BU pays a contractually agreed monthly pension (BU-Rente) once you can no longer perform your last actual occupation to at least 50 %, usually for at least 6 months. Unlike the statutory scheme, BU assesses the specific job you held last, not an abstract ability to earn.

How high should the BU pension be?

Rule of thumb: 60–80 % of net income. At €2,500 net that is €1,500–2,000. Anyone who picks a lower amount runs into a hard coverage gap — especially because BU payouts may be socially insured and partly offset against any statutory disability pension.

What drives the premium?

Four levers:

Entry age — the younger, the cheaper, and the simpler the medical exam.
Occupation group — group 1 (academic/office) is cheap; group 4 (heavy manual) can be 3× more expensive.
BU pension — linear: double the benefit, double the premium.
End age — a higher end age raises the premium but matches the statutory pension age better.

Occupation groups explained

Group 1 — engineer, academic with office work, lawyer, IT consultant, pharmacist
Group 2 — clerical worker, teacher, banker, salesperson
Group 3 — nurse, hairdresser, cook, mechatronics technician
Group 4 — construction worker, roofer, tiler, jobs with high injury or wear risk

Worked example: 30-year-old software developer

BU pension: €2,000/month
End age: 67
Occupation group: 1
Premium dynamic: 2 % p.a.
Monthly premium: ca. €45 (yearly premium ca. €540)

The same tariff for a 30-year-old roofer (group 4) costs ca. €130/month — occupation group is the biggest lever.

Premium dynamic vs. benefit dynamic

Both protect against inflation, but they act differently:

Premium dynamic — premium AND BU pension rise by the same percentage every year (e.g. 3 %). No new medical exam.
Benefit dynamic — once the BU benefit is being paid, the monthly amount is raised every year (e.g. 2 %). Protects against loss of purchasing power during the payout phase.

Recommendation: include both. You can opt out at any time without consequences.

Selection criteria — what to watch out for

Waiver of abstract reference — mandatory. Otherwise the insurer can refer you to another occupation.
50 % rule — benefit already at 50 % BU, not only at 75 %.
Supplementary insurance guarantee — raise the BU pension on marriage, birth or property purchase without new medical exam.
AU clause — benefit when sick-listed for more than 6 months.
Deferment option — pause premium during parental leave or unemployment.
Waiting period — ideally benefit from day 1 or after 6 months at most.

Who does not need BU?

BU is worth it for nearly anyone in work. Exceptions: civil servants with a Dienstunfähigkeit clause often have special rules. Retirees and people with enough wealth also do not need BU. Students and trainees should sign up early — premiums are low and the medical exam is straightforward.

Related calculators

Statutory Disability Pension Calculator — what the statutory cover really provides
Accident Insurance Calculator — the accident-specific complement to BU
Retirement Provision Calculator — close the pension gap even without BU
Financial Health Check — full overview of your financial picture

FAQ

How much does BU cost per month?

For €1,500 BU pension to end age 67: 30-year-old academic (group 1) ca. €35–45/month, craftsman (group 4) ca. €100–130/month. At age 45 the premium rises sharply.

Is BU worth it for civil servants?

Yes, where the Dienstunfähigkeit clause is missing or its residual benefit is too low. Aspiring civil servants should sign up early before health conditions make it more expensive — or impossible.

What about mental health?

Mental health is the most common cause of BU today (over 30 %). Good tariffs pay out here too — without exclusions. Read the small print.

BU vs. Erwerbsunfähigkeitsversicherung (EU)?

BU is much better because it pays at 50 % disability in your actual occupation. EU pays only when you cannot work at all — similar to the statutory disability pension.

→ Open the BU insurance calculator