Experts consider disability insurance (BU) the most important insurance for young people in Germany. As the FAZ reports, however, there are numerous pitfalls that policyholders should be aware of before signing a contract.
A common problem is unclear definitions of disability. Some policies require that the insured can no longer perform their job by at least 50 percent – others set the bar higher. The so-called abstract referral is also a risk: the insurer can refuse benefits if the insured could theoretically take up another occupation, even if they lack the qualifications for it.
Additionally, customers should pay attention to the premium dynamics. Many contracts include an annual premium increase that often goes unnoticed. The FAZ advises checking the terms and conditions carefully before signing and seeking help from independent advisors.
Source: www.faz.net
