Tuesday, November 23, 2021
Premium jump from 2022
Is it worth taking out a BU insurance?
Disability insurance will soon become more expensive. Because the maximum discount rate for life insurance is falling, the premiums for new contracts will rise. Why is that?
From January 1, 2022, the maximum actuarial interest rate in life insurance will drop from the current 0.9 percent to 0.25 percent. This also has consequences for the occupational disability insurance (BU): Their contributions will often be more expensive from the coming year.
For fear of rising costs, nobody should conclude a contract quickly, says Bianca Boss from the Association of Insured in an interview.
Is disability insurance an important policy?
This insurance is one of the most important policies. After all, BU is about protecting against permanent loss of manpower. Permanent loss of manpower means – to put it simply – that you can no longer earn money because you are too sick to work. Insurance protects against this financial risk.
In addition to the BU, there is another suitable policy that pays a monthly pension in the agreed amount as long as the condition persists: disability insurance, or EU for short.
What are the differences?
The disability policy pays out if the insured person is permanently unable to work in the general labor market. This is usually the case when you can no longer work for more than three hours a day.
The BU already pays if the job last practiced during healthy days can only be practiced permanently for health reasons – usually not more than 50 percent. In contrast to the EU, it is irrelevant whether insured persons are still able to work on the general labor market.
The occupational disability insurance is therefore more efficient, but it also costs more for many professions.
How expensive is a BU on average?
Average values are actually meaningless for BU contracts. How much you pay for your contract depends on a variety of individual factors. An important factor is, for example, the job you are doing when you apply.
The following applies: the riskier a job, the higher the contribution. Or to put it another way: in a manual profession you usually have to pay more for the BU than in an office job.
Which other factors influence the contribution?
In addition to the profession, the insured benefits also play a role. The status of the insured person also has an influence. It can therefore make a difference whether the insured person is a civil servant, employed subject to social security contributions, self-employed, freelance or as a pupil or student without a job.
But leisure time behavior can also influence the amount of the premium. Those who practice risky sports may have to pay more, as usually does everyone who has previous illnesses.
Why is the falling maximum actuarial interest rate for life insurance now leading to higher premiums for the BU?
BU and EU contracts are part of the life insurance line for regulatory purposes. The discount rate is particularly relevant for calculating the tariffs.
Example BU: The risk increases with age. However, so that the premium does not increase annually, but rather remains constant over the agreed contract period, the premium has a savings component in addition to the risk and cost component. This means that provisions are made from this savings component in order to smooth the premium so that it remains constant over the agreed contract period.
If the maximum actuarial interest rate is reduced, from January 1, 2022, the provisions can only be subject to interest at a maximum actuarial interest rate of 0.25 percent. The premium must then increase accordingly compared to the current tariffs, which are calculated at up to 0.9 percent. How much the increase is depends on many factors. We anticipate a premium increase of five to ten percent for BU contracts.
For this reason, should I take out insurance quickly this year?
Especially with personal insurance such as EU or BU, the following applies: Be careful with speed! With these contracts, it is not primarily the amount of the premium that matters, but a clean and flawless application and needs-based services.
Above all, the extensive processing of the health history is naturally very time-consuming. But it is a prerequisite for a contract. We therefore urgently advise against taking out a degree soon this year if this affects the diligence of the application. Because in the worst case, that can cost insurance coverage.
Which points are really important in a contract?
The most important thing is to conclude an individually tailored contract. We therefore do not recommend completing your own degree on the Internet. It is advisable to submit an advance risk inquiry through a specialized insurance advisor or insurance broker in order to determine which suitable and needs-based contracts exist and which contracts are possible for the applicant.
Read here what a BU policy is good for in the event of Corona.