Many graduates first hear about occupational pensions (betriebliche Altersversorgung, bAV) when their employment contract is about to be signed. Some employers also offer disability insurance (Berufsunfähigkeitsversicherung, BU), for example as part of a group scheme. Whether that suits you depends on the policy terms and on your situation when you next change jobs.
Short answer: Disability insurance through an employer usually runs as a group scheme or a direct insurance within the bAV, depending on how it is set up. You can ask that part of your future salary be converted, up to 4 percent of the contribution assessment ceiling of the statutory pension insurance. In 2026 that is 338 euros a month (ceiling 8,450 euros a month). Last updated: October 2026.
Key points at a glance
- Disability insurance through your employer can be tied to your employment. It does not automatically replace your own cover.
- Salary conversion has a legal framework. The statutory entitlement is capped at 4 percent of the contribution assessment ceiling (section 1a BetrAVG).
- When you change jobs, the contract decides whether you can keep the cover or move it to an individual tariff.
- Your health at the start of the contract matters. Pre-existing conditions must be disclosed where the application asks about them.
- Compare the employer offer with your own BU before you commit.
What does bAV actually mean?
Occupational pension provision (bAV) is a form of retirement saving that your employer offers or that you build up through salary conversion (Entgeltumwandlung). The entitlement to salary conversion is set out in the German Occupational Pensions Act. You can ask that part of your future salary is used for this purpose, up to 4 percent of the contribution assessment ceiling of the general pension insurance (§ 1a BetrAVG, Occupational Pensions Act (in German, retrieved 26 Oct 2026)).
The bAV is first and foremost a retirement product. That disability cover can run through it is a design question that you must check in the contract. Not every bAV scheme includes BU, and not every workplace BU is designed the same way.
What can disability insurance through an employer look like?
Arrangements vary. Two routes are common: a group scheme that applies to several employees, or a policy the employer takes out for you through salary conversion. Whether health questions apply, how high the benefit is and who the policyholder is are set out in each contract. In group schemes, health questions can differ from those in an individual application. Ask for the documents before you sign.
| Feature | BU through the employer | Your own BU |
|---|---|---|
| Contract partner | Employer or insurer within the bAV | You, with an insurer |
| Link to the job | Can be tied to the employment | Independent of the employer |
| Keeping cover after a job change | Only if the contract allows it or a transfer is possible | Usually yes, because your contract continues |
| Health questions | Depend on the design and can differ | In the application, with risk assessment |
| Scope of benefits | Fixed in the contract, changes only if the contract allows | As chosen in your tariff |
Worked example: salary conversion and the cap
Assumption: you convert 100 euros gross a month into the bAV. That is 1,200 euros a year. The cap for the statutory entitlement is 4 percent of the 2026 contribution assessment ceiling. Calculation: 101,400 euros times 0.04 gives 4,056 euros a year, or 338 euros a month. In this example your desired amount is well below the entitlement. The 2026 ceiling of 8,450 euros a month (101,400 euros a year) is taken from the notice of the German statutory pension insurance, notice on social insurance reference values (in German, Oct 2026).
Whether and how the amount affects tax and social insurance depends on further limits. Check them on your payslip or with personal guidance.
What happens in a claim?
In a claim, the wording of the contract decides. The law describes occupational disability as being unable to practise your last occupation, fully or partly, in a way expected to last permanently, because of illness, injury or an age-related decline beyond the normal (section 172 VVG). The contract makes this definition concrete, including rules on referral and the level of benefit.
Your employer usually does not decide a claim. The assessment runs through the insurer under the terms. You should therefore know the conditions before you rely on the cover, not only once a claim is pending.
What to check when you start your career
- Policyholder: who owns the contract, and what happens when the employment ends?
- Continuation: can you continue the cover privately or move it to an individual tariff without a new health check?
- Referral: which rules apply if you move to a different occupation? See also Abstrakte Verweisung.
- Health questions: which questions are asked, and do you have pre-existing conditions you must disclose?
- Double cover: check what you already have through the employer before you take out a second BU.
For graduates this means that employer cover is often a useful building block, but rarely the whole solution. Whether it is enough depends on the benefit level, the duration of cover and how you stand after a change of employer.
Frequently asked questions
Is disability insurance through an employer better than my own?
Not automatically. It can be convenient, but it often offers less room for design and stays tied to the employment. Your own BU can be kept independent of your job. Compare both side by side.
Does the cover continue after a job change?
That depends on the contract. Whether the cover can be taken along or moved to an individual contract is set out in the documents. Ask in writing before you change jobs what options exist.
Do I have to join the bAV?
No. The entitlement to salary conversion applies when you claim it (section 1a BetrAVG). Collective agreements or works agreements may contain other rules, so check your employment contract.
Can I simply keep paying after I change jobs?
Only if the contract provides for continuation or an individual tariff is offered. Clarify with the insurer before your employment ends. Changing jobs without clarifying this can mean losing cover.
What role does the health check play?
Pre-existing conditions must be disclosed truthfully where the application asks about them. Group schemes can use different wording. If in doubt, an anonymous risk pre-assessment can clarify your chances, as explained in German at BU mit Vorerkrankung als Student.
What to do now
- Ask your employer for all documents on the bAV and the BU, including the policy terms.
- Check who the policyholder is and how cover continues when you change jobs.
- Compare the benefits with an individual BU offer before you decide.
- Have questions about health answers and overlapping cover reviewed personally. Academycon offers this in German at So arbeiten wir.
Related reading
- Disability Insurance for Students: Costs and Start
- BU nach dem Studium
- BU-Rente
- Erwerbsminderungsrente
- BU im Studium abschließen
Sources: § 1a BetrAVG, Occupational Pensions Act (in German, retrieved 26 Oct 2026); § 172 VVG, Insurance Contract Act (in German, retrieved 26 Oct 2026); German statutory pension insurance, notice on social insurance reference values (in German, Oct 2026).
Last updated: October 2026. This guide is general information, not individual advice.
