What happens to my income protection if I leave Germany?

BU contracts are written under German law and don't automatically terminate when you move abroad. The contract just keeps running. The practical picture, though, depends a lot on where you go.

Many insurers continue full coverage worldwide; some restrict coverage in specific countries or charge surcharges for higher-risk regions. Claim handling from abroad can also be slower, because the assessment usually involves German medical procedures and doctors. And the tax treatment of any future BU pension payment will depend on where you are tax-resident at the time of payout, plus the relevant double-taxation treaty.

Surrendering BU early is usually the worst option, even though it can look tempting at the point of moving. Contract costs are concentrated in the early years, so cancelling early means absorbing most of those without ever really benefiting. And re-entering BU coverage later — older, perhaps with new health issues — is almost always much more expensive, if it's available at all.

The most common right answers when leaving Germany are simpler than they sound: keep paying if your situation allows, or pause through Beitragsfreistellung (contribution exemption) if cash flow is tight. Surrendering really is rarely the best move, especially for healthy expats who would struggle to reinsure on similar terms in their new country.

Review the contract with your insurer or an independent advisor a few months before the move, update address and bank details, and decide deliberately rather than reflexively.