During your studies the premium for disability insurance (BU) often does not fit the budget. It is tempting to end the contract or simply stop paying. Before you do that, look at your tariff, because many contracts provide interim solutions that keep at least part of the protection in place.
Short answer: If the disability premium becomes too high, first check whether your tariff offers premium-free status, deferral or an adjustment of the pension. Whether and how this works is set only in the terms of your contract. Cancelling is usually the last option, because the protection then ends. Last updated: October 2026.
The Most Important Points in Brief
- The disability premium runs for many years. A short-term shortage should not lead to a permanent loss of protection.
- Typical interim solutions are premium-free status, deferral of payments, a premium reduction and a tariff change.
- Which options exist is stated in the terms. If in doubt, ask in writing.
- Each solution has a price, usually lower benefits or a later catch-up payment.
- Cancelling should only be your choice if you no longer need the protection or cannot pay for it at all.
Why the Premium Matters
Disability insurance is a contract with a long term. As long as it runs, your protection remains in place. If payments stop, the cover can be suspended or may end. A new contract later is not guaranteed. The FAQ on disability insurance by the Verbraucherzentrale Rheinland-Pfalz (dated January 2020) points out that your state of health, your age and your choice of occupation play a role when a contract is concluded, and that a later contract can become difficult if your health has deteriorated. A contract you give up does not simply come back.
The question is therefore not only whether you can pay the premium today, but also how you keep the protection over the coming years. An interim solution is often the wiser choice if it is needed only for a limited time. A further advantage: if the contract stays in place, the start date and the age at entry also remain, which can matter for later increases or tariff changes.
What Options Exist?
The names differ between providers. The overview below shows the most common variants and what to check. Not every tariff offers every option.
| Option | What usually happens | What to check |
|---|---|---|
| Premium-free status | You stop paying premiums, the contract continues, and the benefit is reduced | How far the benefit is reduced and whether it can be restored later |
| Deferral of premiums | The premium is postponed for a period and paid later | Amount of the catch-up payment, interest and deadlines |
| Premium reduction or tariff change | You pay less because the pension is lower or a cheaper tariff applies | Whether a new health check is needed and which conditions then apply |
| Cancellation | The contract ends and the protection lapses | That a new contract later may be uncertain or more expensive |
With premium-free status or a tariff change, read carefully whether the reduction is temporary or permanent. Also ask whether you can raise the benefit again later. The future insurability guarantee can help here if your tariff includes it, see the German guide on the future insurability guarantee.
Worked Example: Pause or Reduce?
Assumption: your disability premium is 45 euros a month for a pension of 1,000 euros. You could reduce the pension to 700 euros, which lowers the premium to 30 euros. All figures are assumptions, so that you can follow the principle.
| Variant | Monthly premium (assumption) | Saving per year (assumption) | Pension in an emergency (assumption) |
|---|---|---|---|
| Tariff unchanged | 45 euros | 0 euros | 1,000 euros |
| Pension reduced to 700 euros | 30 euros | 180 euros | 700 euros |
A saving of 180 euros a year looks small, but it changes your cover by 300 euros a month. Always weigh both sides: the relief in your budget and the gap in an emergency. If the gap is larger than your buffer, a reduction is not a good solution, however low the premium becomes.
When an Interim Solution Makes Sense
An interim solution fits especially when the shortage is foreseeable and money will be available again afterwards, for example during an unpaid internship, a phase with heavy study load or a short gap between graduation and your first salary. In such cases the contract is kept, and you do not have to start from zero.
Less sensible are pauses without a clear end. If it is foreseeable that the premium will remain too high in the long run, it is usually better to adjust the pension or check another tariff than to lose the protection for good. This decision should rest on your actual budget, not on the feeling that the contract is not worth it at the moment.
How to Check Your Terms
- Search the policy terms for the keywords premium-free status, deferral, premium adjustment and tariff change.
- Note for each option the consequences for benefit, duration and catch-up payment.
- Ask in writing whether the option applies to your tariff and whether you need a health check.
- Compare the variants with your budget for the next twelve months before you sign anything.
Frequently Asked Questions
Can I simply pause the disability premium?
Only if your tariff provides for it. A pause without agreement is not foreseen. If you simply do not pay, you risk reminders and, in the worst case, the end of the contract. Contact the insurer before the first missed payment.
What happens to my protection during a pause?
That depends on the option. With premium-free status the contract continues, but the benefit is usually reduced. With deferral the protection generally remains until the catch-up payment is due. The exact consequences are stated in the terms.
Do I have to disclose my financial situation to the insurer?
Whether proof is required depends on the application and the tariff. Ask before you apply which documents are needed, and submit only what is explicitly requested.
Is cancelling always the worst solution?
Not always. If you no longer need the protection in the long run or are secured elsewhere, cancelling can be justifiable. Keep in mind, however, that a new contract later is not assured and is often more expensive.
What to Do Now
- Work out what you can afford over the next year and set a clear limit for the premium.
- Check your terms for premium-free status, deferral and tariff changes.
- Talk to the insurer before you miss a payment. An early enquiry leaves more room than a late reminder.
- Have the chosen solution confirmed in writing and put deadlines and catch-up payments in your calendar. For a personal assessment, see how we work (in German).
Related Reading
- Disability pension as a student: how high should it be?
- Future insurability guarantee: raise your disability pension after starting work
- Disability insurance as a student: what does it really cost?
- Disability insurance with a pre-existing condition as a student
Sources: FAQ on disability insurance by the Verbraucherzentrale Rheinland-Pfalz (dated January 2020). The terms of the individual tariff are the decisive source for every option.
Last updated: October 2026. This guide is general information, not individual advice.
