Income protection insurance offers protection for everyone – regardless of whether self-employed or not. This is because time off work due to illness can create big gaps in your social insurance contributions. If you are unable or unwilling to dip into your savings to fill these gaps, income protection insurance will be a good choice for you. 

We recommend taking out income protection insurance as early as possible. This is because you will no longer qualify for the policy once you become incapacitated in some way, or will only be able to do so subject to much stricter conditions. Plus, the age you are when taking it out also affects your premiums: the earlier you take it out, the lower the premiums.

The cost of the premiums depends on your personal risk profile. It also depends on the pension amount and the waiting period you choose. The smaller the pension and the longer the waiting period, the lower the cost of your income protection insurance will be.

In a nutshell, income protection insurance protects you if you lose your capacity to engage in any gainful employment whatsoever. An occupational disability, by contrast, would mean losing your ability to perform a specific job. In this case, it would be possible and reasonable for you retrain for another job.

Income protection insurance covers you if you become totally or partially disabled and unable to work. In this case, it will cover the income you have lost. However, you could also lose your earnings for reasons that are not health-related, such as leaving or losing your job, as a result of which you might be left without an income. This is not the same as a disability or becoming unable to work. 

You can pay your income protection insurance premiums into your private pension, i.e. pillar 3a or 3b. This way, you are both protecting yourself from risks and saving for your retirement at the same time. This savings component is optional. If you would like to add it, please speak to one of our advisors.

Yes, they will be tax-deductible if you take out income protection insurance as part of a pillar 3a or 3b account. With a tied pension, the premium will count as a pillar 3a payment and can be deducted from your taxable income.

Yes, any payments you receive from your income protection insurance are subject to tax in the same way as a regular income.

You can pay your premiums monthly, quarterly, six-monthly or annually. You can easily and conveniently do so via direct debit, for example. Finance the premiums via an interest-bearing premium deposit account and benefit from attractive interest rates. 

You can cancel your policy as set out in the terms and conditions. Normally, this would be annually when the relevant insurance year runs out. This date will be stated in your policy document. Please note that, although you will be able to cancel your policy, you will not be able to redeem it. This means that you will not get any money back if you cancel it.