To ensure that your existing insurance policies really meet the hedging needs of a family , you should put them to the test before the birth of your first child. We give you the most important information about which insurances are suitable for you and your family and how you can best secure your loved ones.
In our first part of “Insurance for Families” you have already learned what a private liability insurance for your family and why a term life insurance is important for young families. In the second part of “Insurance for Families” you will learn today how the disability insurance protects you and your family from loss of income and how the sickness allowance insurance can close a possible income gap in case of incapacity for work.
The disability insurance – compensate for loss of income
If, due to illness or accident, you are no longer able to practice your current occupation, a disability insurance can cover you. Especially for families whose livelihood depends on the income of a parent, occupational disability insurance is very important. In this case, the main earner should take out the insurance. The same applies of course to single parents .
Even if it may surprise you, the risk of occupational disability is not limited to people in higher risk occupations. The most common cause of early retirement is serious mental illness or neuropathy .
Even if you receive a disability pension from the state, keep in mind that it is barely more than a third of your last gross salary, if any! The conditions for admission to the statutory disability pension are much more difficult than for the private occupational disability pension.
When does occupational disability insurance pay?
Whether your inability to work was caused by an accident or illness , the disability insurance pays you a monthly pension once you are no longer able to work at least 6 months to 50% of your job.
Occupational disability insurance is one of the most important insurance policies, especially for families, as the disability pension and supplementary social benefits are usually insufficient to meet the needs of a family. If the main earner also financed the home , would fall in an emergency, not only the income, but also the home.
You should only refrain from occupational disability insurance if you and your family can adequately cover their losses with existing reserves. Since disability insurance is quite costly, you should check in advance to see if you can and do afford this insurance financially. Talk to us on the disability insurance, your Goodfinancial partner will be happy to advise you! The topic of occupational disability insurance with your relevant health issues and choosing the right company is complex and should never be completed without an independent broker .
The daily sickness insurance – to secure lost earnings
To prove your disability, you must submit a large number of documents to your insurance company. These include, for example, medical reports and descriptions of your current job, and usually a diagnosis of “disability” occurs over a very long period of “disability”.
Until your application has been assessed and the incapacity for work is determined, a longer period of inability to work usually goes into the country. However, the entitlement to a continued salary payment lasts for a maximum of six weeks. From the statutory health insurance you would receive from this time the sick pay , but this is lower than the net salary. To close this income gap, it makes sense to take out a daily sickness insurance. Especially employees above with a gross salary above the income threshold should close this gap.
For whom is sickness allowance insurance useful?
Whether it makes sense for you to take out daily sickness insurance depends on your employment.
- Statutory Employees:
If your salary is below the income threshold, the sickness benefit is approximately 20 percent lower than your previous net income. In order to close this gap and make a living, you should think about sickness allowance insurance.
- Privately insured employees:
If you are a privately insured employee, you will not receive sickness benefit after the six weeks of paid wages. Therefore, you should take out daily sickness insurance to cover your monthly expenses.
Civil servants do not need sickness allowance insurance because their benefits continue to be paid in the event of a long-term illness without a specific time limit. In the event that you can no longer work in your profession, it is possible to take out a disability insurance.