One of the biggest concerns among Austrians is the loss of income and the associated drop in the standard of living to which they are accustomed. Loss of earnings due to disability can be almost completely covered by a suitable insurance solution. ERGO now offers just such a product.
Disability can happen to anyone
Over 450,000 pensioners have retired from work prematurely due to disability. Apart from cases where no social insurance scheme is in place, even when social security regulations do recognise entitlement to disability benefits, these result on average in a loss of around 40% of income. “Our new product closes the gaps in existing disability coverage and, both in terms of the length of coverage and the level of protection desired, offers greater scope for individually tailored plans”, says Josef Adelmann, Chairman of ERGO Versicherung in Austria.
Insurance cover for young people and housewives too
Because the risk of disability is something which concerns almost everyone who is fit for work regardless of their age, education or current employment, the occupational disability insurance cover offered by ERGO Versicherung is designed with apprentices, students, housewives and house husbands in mind too.
The period of insurance chosen is flexible, and can be adapted to suit the individual. Both long-term and temporary options are available. Shorter-term cover in particular offers customers tailor-made insurance. People who only begin working later in life because of studies, for example, often fail to meet the requirement in the social security regulations of having made social security contributions for 60 months within the previous 120 by the time they reach the age of 27. As a result, latecomers to formal employment are often not entitled to statutory disability benefits. Only with private disability insurance is the risk of disability adequately covered during this phase of working life. “It was and is important to us to make the insurance affordable too. So the annual premium on a ten-year policy for a 27-year-old aspiring accountant fresh out of university equates to a monthly payment of EUR 15.55. In an emergency, he would receive a monthly pension of EUR 1,290”, explains Josef Adelmann.
Because situations in life can change for the insured, ERGO allows for changes to the policy to incorporate certain events during the insured period, such as marriage, and the birth or adoption of a child. Another medical examination is not required. The minimum period of insurance is ten years, and a policy can be taken out at any time before reaching the age of 57. The payment of a pension will always be at least three years longer than the insured period.
Additional one-off support
If disability is as a result of an accident, the insured person will receive a one-off accident support lump sum. This is so that the insured person can, for example, make the necessary structural changes at home to accommodate his or her physical disability. This immediate benefit is in addition to the monthly pension paid and equates to 24 months’ pension. In addition, financial support is provided upon returning to work with an established disability. The level of support in such cases equates to six months’ pension.
Special services for doctors and medical personnel
Doctors and medical personnel may be prohibited from performing their duties due to infection. If they are disqualified by a competent authority for a minimum period of six months, then that disqualification shall be treated as a disability, and a monthly pension will be paid for the duration of the period of disqualification.
 Source: WKO - Psychische Erkrankungen kosten jährlich 7 Mrd Euro 20.12.2013 (Austrian Chamber of Commerce - Mental illness costs 7 billion euros annually 20.12.2013)
Reasons for occupational disability
Occupational disability as an existence-threatening risk
Younger people can be hit as well by occupational disability
ERGO Austria International AG
Businesspark Marximum / Objekt 3
Tel. +43 1 27444-3703
ERGO Versicherung in Austria is a subsidiary of ERGO Austria International AG. Within the scope of strategic cooperation agreements with partners UniCredit/Bank Austria, the Volksbanken Association as well as via field service, brokers, agencies and direct sales channels, a tailored range of life insurance, accident insurance and property & casualty insurance products are offered to private and business customers. ERGO Austria International AG in Vienna is a part of ERGO Group AG, located in Düsseldorf, Germany.
More information is available at www.ergo-versicherung.at and www.ergo-austria.com
Please note: The descriptions and information above are for press release purposes only. They in no way constitute a recommendation or any other type of insurance advice, nor do they amount to a request that you purchase an insurance policy.
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of ERGO Austria International AG. Known and unknown risks, uncertainties, and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation, and performance of our Company. The Company assumes no obligation to update these forward-looking statements or to conform them to future events or developments.