Occupational disability insurance (BU insurance) also provides financial protection if you are self-employed and can no longer work in your profession due to illness or injury.
BU insurance pays out if health problems prevent you from continuing in the profession you most recently practised. The definition of occupational disability may vary depending on the contract (for example, an impairment of 50% or more). If you become occupationally disabled, an agreed monthly pension is paid to maintain your standard of living and cover financial obligations. Many policies offer additional options, such as waiving premiums in the event of occupational disability or options to adjust the sum insured. Some contracts specify how long the pension will be paid. If the occupational disability continues, this may be until retirement age.
It is important to check the insurance policy’s terms and exclusions carefully, since not every illness or injury automatically qualifies for benefits. The amount of the monthly pension and the duration of payments should also be clearly specified in the contract.
BU insurance is an important part of financial protection for self-employed people. It is by no means limited to occupations involving heavy physical demands or accident risks. Even office work can sometimes become impossible if, for example, an illness prevents someone from sitting or impairs their eyesight. You should therefore choose carefully and, if necessary, seek independent advice to help you make your selection.
