Only one in five self-employed persons without employees is insured against incapacity for work. The cabinet therefore wants to oblige self-employed persons to take out insurance for this. Four questions about the AOV.
The compulsory disability insurance is part of a package of measures with which the government wants to improve the labor market.
1. What is disability insurance (AOV)?
With an AOV you, as a self-employed person, ensure that you retain your income if you are unable to work for a longer period of time due to an accident or illness. You will then receive a monthly amount from your insurer that you have agreed in advance.
2. From when is an AOV compulsory?
At the moment it is up to the entrepreneur whether or not to take out insurance. Minister Van Gennip of Social Affairs and Employment has now agreed with the trade unions and employers that insurance will become mandatory from 2027. This must go through the UWV benefits agency and, according to Van Gennip, will be ‘affordable’. The self-employed who already have insurance do not have to switch to the new scheme.
3. How much does insurance currently cost?
A frequently heard reason for not taking out insurance is the high costs. On average, an entrepreneur pays between 200 and 300 euros gross per month. It depends, among other things, on the profession, but also on the wishes of you as an entrepreneur. A self-employed person in the construction industry runs different risks than a freelance administrator and will therefore pay a higher premium. For example, a 22-year-old administrator with an insured amount of 40,000 euros will pay less than 100 euros per month, while a 43-year-old carpenter will soon lose 450 euros.
The premium is determined on the basis of duration, profession, age, the insured amount and the deductible. In most cases, entrepreneurs insure approximately 80 percent of their income. The lower this amount, the lower the premium. To save on the premium, you can also opt for a longer deductible period, for example six months. This means that you will only receive a benefit after six months of illness. In addition, you can lower the final age to, for example, 60 instead of state pension age. The higher the final age, the higher the premium.
The premium is tax deductible. This reduces the amount you have to pay in income tax.
4. How do you choose a good insurance policy?
Find out which insurance is best for your company. Some professional groups have specific disability insurance, such as the AOV for general practitioners. Pay close attention to coverage when closing. Check whether the insurance also pays out in the event of a burnout or mental illness, for example. Also check the terms and conditions for how the insurer deals with disability. For example, he will look at what you can still do in other work, so that you need benefits for less time.
An independent insurance advisor can map out the risks and options together with you.
Watch all our work and career videos here:
Free unlimited access to Showbytes? Which can!
Log in or create an account and don’t miss a thing of the stars.
#costs #insure #incapacity #work