Switching or cancelling your disability insurance (Berufsunfähigkeitsversicherung, BU) can look harmless when the old policy no longer fits. For people starting their careers, however, it can put cover at risk, because a new policy is assessed again. This guide shows the risks, how to plan the order of steps correctly and which questions to clear up before you decide.
Short answer: A disability policy should only be cancelled once the new contract is already in force. A switch means a new health check, a new classification of your occupation and often a higher premium. At career entry, gaps or exclusions can arise that become expensive later. The tariff conditions and statutory deadlines decide each case. Last updated: October 2026.
The essentials in brief
- Never cancel an existing BU policy before the new contract has a confirmed start date. Otherwise a gap arises.
- A new policy starts with a new health check. Earlier information and treatments are assessed again.
- Your occupation is classified again. At career entry this can change your cover noticeably.
- You may withdraw from a new contract within a statutory period. After that, cancellation and tariff rules apply.
- Before switching, compare the conditions of both policies, not only the premium.
Why switching at career entry is risky
Disability cover protects your ability to work. The law defines occupational disability by reference to your last occupation. Under section 172 paragraph 2 of the German Insurance Contract Act (VVG, German text on gesetze-im-internet.de) the question is whether you can no longer practise that occupation, wholly or partly, probably on a lasting basis. Your occupation is therefore a central yardstick, and it often changes at career entry.
Anyone who takes out a new policy after studies usually starts with a new health check. A switch therefore has two sides. You may improve the conditions, but you risk the insurer setting new restrictions once previous illnesses or treatments become known, even if they were irrelevant under the old contract.
The health check for a new contract
When you apply, you must answer the insurer’s questions fully. Under section 19 VVG (German text on gesetze-im-internet.de) there is a duty to disclose circumstances that are material to the insurer and about which it asked in text form. This pre-contract disclosure is the basis for the insurer’s later decisions.
For a switch this means that new doctors, diagnoses and medication must be consistent with your answers. Your old contract documents help you reconstruct the history. The health check is not a judgement on you, but it is how the insurer assesses risk.
Cancelling or switching: what is the difference?
Cancelling and switching are not the same. Cancelling ends an existing contract. Switching means a new contract is concluded and the old one ends, depending on the circumstances. At career entry both routes often lead to the same result if the order of steps is wrong.
| Approach | Advantage | Risk |
|---|---|---|
| New contract first, then cancel the old one | Cover remains continuous | The new application may be accepted with restrictions |
| Cancel the old contract first | Less administrative effort | Unprotected if the new application is refused or delayed |
| Keep the old policy paid up or suspended | Existing conditions are kept | Depends on the tariff and is not available everywhere |
| Keep the old policy and add a new one | Double cover if you can afford it | Double premiums, so a careful weighing is needed |
The table shows typical routes. Which option is actually available depends on the conditions of your policy.
Keep the withdrawal right in mind
If you have just concluded a new contract, you may be able to withdraw from it. Under section 8 VVG (German text) you can withdraw your contractual declaration within 14 days. The period starts only once you have received the required information. Check the documents carefully before the period runs out.
Withdrawal is a tool for exceptional cases. If you realise after a conversation that the tariff does not fit, keep the deadline in mind rather than cancelling the old policy in haste.
Career entry: what often changes
At career entry several factors change at once. Your income rises or fluctuates, your occupation may be described differently, and your life plans become more concrete. This affects the pension you need and the premium you can afford.
- Check whether your current pension still fits your expected income, or whether you need a rider that raises it over time, as explained in our guide on the BU rider (German).
- Clarify how the occupation is classified in the new contract. The classification determines which other activities you can be referred to in a claim.
- Assess whether any past sick leave is relevant under the tariff. The background is explained in our guide on the incapacity-to-work clause (German).
Many people starting their careers focus on the premium and overlook the classification. This is where later disputes often arise.
Frequently asked questions
Can I simply cancel my BU policy if I find a cheaper tariff?
You can cancel, but you should respect the order of steps. The advantage of a lower premium rarely outweighs the loss of continuous cover. Ask what the new tariff actually provides before you cancel.
What happens to the surrender value?
A disability policy usually builds up no significant value that you would receive back on cancellation. Whether and how much is paid out is set out in the contract. Ask for this in writing before you decide.
Do I have to give the old insurer a reason?
No. For cancellation, the declaration the contract provides for is generally sufficient. The timing matters, not the reason.
When can a switch still make sense at career entry?
When the new tariff clearly improves the conditions, the health check is unproblematic and the order of steps keeps cover continuous. Judge each point separately and not only the premium.
What if I am not sure?
Then take your time. Decisions made under time pressure often go wrong. Have the comparison of conditions explained to you before you cancel anything.
How to proceed now
- Gather the documents of your existing policy and note the premium, pension, term and rider rules.
- Get an offer for the new tariff and compare the conditions point by point, including occupational classification and health questions.
- Apply for the new policy before you cancel the old one. Wait for the confirmed start date and keep it in writing.
- Cancel the old policy only once the new cover is confirmed. If you are unsure, get advice first: How we work (in German).
Related guides
- BU rider and inflation protection explained
- Incapacity-to-work clause and sick notes
- Disability insurance in medical studies
- Health insurance after the trainee period: what comes next
Sources:
- § 172 VVG, occupational disability (gesetze-im-internet.de, retrieved October 2026, German text)
- § 19 VVG, duty of disclosure (gesetze-im-internet.de, retrieved October 2026, German text)
- § 8 VVG, right of withdrawal (gesetze-im-internet.de, retrieved October 2026, German text)
Last updated: October 2026. This guide is general information, not individual advice.
