Sickness insurance for ZZ
Self-employed people are not automatically entitled to disability benefits. There is no Sickness Benefit Act for the self-employed. If you are ill, you will not only lose your income, but you will also not be able to claim sickness benefit or a pension. For this reason, it is worth considering purchasing disability insurance at the very beginning of your business. Although it is not obligatory, in practice, about 50% of the self-employed use this solution.
After reading our article you will know:
- When is it worth taking out disability insurance (AOV) being an ZZP?
- What does the premium amount depend on?
- What is worth remembering in order to reduce the costs of AOV insurance?
1.When is it worth deciding to take out disability insurance (AOV) being an ZZP?
Whether disability insurance is necessary or desirable for you depends on many factors, such as your own financial reserves, family situation, willingness to take risks, and so on. If your financial situation is so favorable that you can easily support yourself for the next 3 to 5 years (using your own resources), it is not absolutely necessary to take out AOV insurance. Unfortunately, in practice, with long-term incapacity for work, it may turn out that your resources will run out earlier than expected and you will fall into financial trouble. If you're a budding entrepreneur, you also can't assume that you'll be able to set aside enough reserves to compensate for the loss of income - especially if illness or incapacity comes on quickly or is long-term. Therefore redemption AOV insurance is in most cases a safer option, it ensures the continuity of income when you are unable to generate it yourself.
2.What does the premium amount depend on?
The amount of the premium depends on many factors, such as your profession and age - these factors are constant, the same for everyone.
You can influence these factors:
- The amount of insurance (the portion of income you insure),
- What percentage of incapacity for work do you want to receive benefits,
- When benefits should start,
- How long benefits are to be paid,
- Do you want to insure only disability as a result of an accident,
- and other.
3.What is worth remembering in order to reduce the costs of AOV insurance?
Unfortunately, disability insurance rates are high. However, there are possibilities to reduce the costs in this respect, namely:
- By concluding group insurance through one of the many organizations associating entrepreneurs,
- Taking out insurance at a younger age - the older you are, the higher the insurance rate,
- Extending the waiting time (own risk time) - the minimum period is one month, but if you have financial reserves, you can extend this time for the benefit of the rate,
- By insuring for a lower amount - the maximum amount of insurance is not always necessary,
- Taking advantage of the tax deductibility of disability insurance premiums.
Summary
Self-employment as a self-employed entrepreneur is usually rewarding and brings many benefits, both financial and related to independence and the ability to make decisions about your business without having to consult third parties. This independence also entails the need to take care of one's own financial situation, also in the event of incapacity for work. It is worth thinking about ensuring the continuity of income before we find ourselves in a situation that forces us to do so.
Conclusion of insurance against incapacity for work is one of the possibilities that will allow this. Properly tailored insurance to your needs will allow you to sleep peacefully. You will not have to worry about how you will manage in a situation where you are temporarily unable to work. It's easy to get lost in the maze of possibilities. And we understand it! Our experienced experts advise you in choosing the options that will be the most beneficial for your company. As a self-employed entrepreneur, you don't have to do everything yourself; trust our experience! Do not hesitate, contact us today - contact details can be found on our website.
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