Insurance – Disability Insurance or Basic Capabilities Insurance?

🧭 Background & Context Disability insurance (BU) secures your income if you can no longer perform your insured occupation by at least 50 percent. Basic abilities insurance (GFV), on the other hand, pays out as soon as you permanently lose elementary everyday skills such as seeing, hearing, or walking – regardless of your specific occupation. For private investors, the difference is existential, as BU policies are subject to stricter checks and demand higher premiums, while GFV is cheaper but often offers only a lower pension. From an economic perspective, BU protects human capital – an employee’s greatest asset – against the risk of income loss. GFV, by contrast, addresses a more general life risk that is not necessarily occupation-specific, making it more attractive for self-employed individuals or those with changing professional activities. For investors, the choice is a matter of risk preference: those with a high, specific occupational risk need BU; those who want to cover a broad but lower risk will find GFV a cost-effective alternative. The importance lies in the fact that without this protection, wealth accumulation can collapse immediately due to illness or accident, as ongoing costs and savings contributions can no longer be maintained. 🔍 How It Works in Detail Disability insurance (BU) pays a pension when you can no longer permanently perform your most recently practiced occupation due to health reasons – whether from cancer, mental health issues, or an accident. The catch: the insurer checks very strictly whether you are truly „at least 50% disabled“ and often requires medical assessments. This makes the application complicated and the premiums expensive because the risk for the insurer is high. Basic abilities insurance (GF) is simpler and cheaper. It doesn’t pay based on your occupation, but rather when you lose certain everyday abilities – for example, seeing, hearing, speaking, walking, lifting your arms, or being able to drive a car. You don’t have to give up your occupation; you only need to prove that you have permanently lost one of these abilities. This is more objectively measurable and leads less frequentl …