Content in brief
The proposed mandatory disability insurance for self-employed people (zzp'ers) will cost a maximum of 195 euros per month and pays out 70 percent of the profit up to a maximum of the minimum wage. Self-employed people who, due to illness, have been unable to earn the minimum wage for a year are entitled to this benefit, at the latest until the state pension age (AOW). Those who cannot earn enough money because of illness receive, after one year, a benefit of up to the minimum wage. Self-employed people who prefer to arrange their own insurance and meet certain conditions can opt out.
Internet consultation
As usual, this, together with all the bills, was also submitted for consultation in recent weeks. This has prompted a lot of responses: self-employed people (zzp’ers) have difficulty with the compulsory nature and the high premium in combination with the limited coverage. 'It's not fair if you pay for an insurance you don't benefit from.'
Wild West
However, reactions did not come only from the self‑employed professionals themselves. All kinds of commercial parties are falling over each other with ‘much sharper premiums’ and other types of terms. The Financial Daily recently published about these ‘cowboys’ in a lead article titled ‘ Price fighters storm market for mandatory insurance for self-employed ’. Frank Alfrink of ZZP Nederland warns in the article about these developments: ‘If a party in advertisements promises that they charge a premium that is half of the mandatory aov, then something is wrong’.
The big why
Of course it is wise to be well insured. Or better phrased: to be appropriately insured. The how and why briefly summarized:
1. Financial security: your lifebuoy in hard times
Income security
Even if you are temporarily out of the running due to illness or an accident. To be able to continue paying your fixed expenses and not have to drastically change your lifestyle. Your AOV is like a financial lifebuoy, ready to help you when things go wrong.
2. Costs and benefits
Sure, a (mandatory) AOV means that you have to pay a premium every month. And yes, that's an extra expense. But it's one that has to suit you, in terms of costs and, of course, also in terms of benefits. Because that premium depends on your age, health and the level of coverage you choose.
3. Budget adjustment: smart finances for a carefree future
That monthly AOV premium means you may need to revise your budget, take another close look at your income and expenses to make room for this new expense. You can do that by cutting costs but also by adjusting your rates. With a tight budget plan you avoid financial stress and are well prepared for whatever comes your way.
4. Choice of insurance: choose smartly, protect smartly
Security and stability are essential for every self-employed person. That's why it's important to arrange everything properly, from assignments to insurance. Through the government? But if you still want to arrange more tailored solutions through a commercial party, don't choose a cowboy with unrealistic promises but a reliable partner with a proven track record!
How to proceed now?
The proposal is there. At the same time, a long process still has to be completed. From adoption (by the new cabinet), via a vote (parliament) to the implementation of the law may still take some time. We are also keeping a close eye on that.
In the meantime it is advisable to assess your own (financial) risks well. Not only in the area of work disability but for example also with regard to liability . Would you like to know more about that, maybe curious about what Circle8 can mean for you then we'd of course love to hear that .
