Guaranteed income for the self-employed
- Work disability benefit
- For the self-employed (whether registered as a company or not)
- Premiums are deductible as business expenses
- Valid worldwide
What is a guaranteed income?
When you’re self-employed, you only receive limited social security benefits if you fall ill or become incapacitated for work following an accident. So, how do you get through that period without any income?
To get though it, you can take out work disability insurance (also referred to as guaranteed income cover). In effect, this ensures that you receive a benefit to support you financially while you’re unfit for work. Even if you already receive financial assistance from your health insurance fund, it’ll give you more time to recover. You continue to receive the benefit for as long as you’re incapacitated for work.
A product to suit your situation
A guaranteed income is not the same for every self-employed person. You choose the product based on your company form, your financial reserves and the level of protection you need.
1. Deferment period
This is the period when you are incapacitated for work but not receiving any benefits. You can decide how long you can manage without benefits (1, 3, 6 or 12 months). The longer the deferment period, the lower the premium.
2. Indexation
Want benefits and premiums that keep pace with inflation or prefer to pay a fixed premium? You can have your benefits and premiums indexed or kept the same, or you can decide to have just your benefits indexed when you’re unable to work.
3. Duration
Your guaranteed income insurance runs until you reach statutory retirement age. You can, of course, cancel your policy before then.
Think about the conditions that are best for your situation and be sure to discuss them with your insurance agent.
What is and isn’t covered?
Covered
- Incapacity for work or physical disability due to an insured illness or accident
- Any mental condition specified in the list of cover
- Your guaranteed income worldwide
Not covered
Incapacity for work due, for example, to:
- An existing illness or previous accident
- Attempted suicide
- Intent
- Excessive alcohol or drug use
A complete list of cover provided and exclusions can be obtained on request from your agent.
Learn more about your guaranteed income
No new deferment period in the event of a relapse within 3 months
If you start working again after a period of work disability but suffer a relapse within three months, you’ll be paid your benefits right away, regardless of your deferment period. The only condition is that your relapse is caused by the same disorder that had previously rendered you unable to work.
Example
You have a deferment period of one month, but are unable to work for several months due to back problems caused by an accident. You duly receive benefit payments. If you start working again and have a relapse within three months due to the same back problems, you’ll be paid your benefits right away and won't have to wait a month to receive them.
Your premium offers tax benefits
Your premium counts as a business expense and is tax-deductible, but you still have to pay an insurance tax of 9.60% on it. Your benefits are taxed as replacement income or as a pension.
The tax treatment of your benefits and premium will depend on your individual circumstances and may change at any time.
Take out insurance to cover your fixed costs, loans, revenues or profits
Sometimes the financial impact of work disability involves more than just the loss of earned income. It can also include:
- Fixed costs that continue to be incurred
- Loan repayments
- The decline in revenues and profits during your absence
You can take out insurance at KBC to cover these situations too. Make an appointment with your agent for a customised insurance package.
‘Right to be forgotten’ for ex-cancer patients
The ‘right to be forgotten’ means that, in certain cases, the insurer may not take cancers into account when an application is made to take out guaranteed income insurance or to join a guaranteed income insurance plan. What’s more, you don’t even have to declare it in some cases.
More information about the conditions applying to the ‘right to be forgotten’ can be found on Assuralia's website and in KBC’s information document.
Report incapacity for work
If you’ve taken out work disability insurance with KBC and you’re unable to work, report it as soon as possible so that KBC can assess your file.
Learn more about reporting incapacity for work.
Good to know
- KBC Individual Protect Plan and KBC Business Protect Plan are work disability insurance policies.
- These products are governed by the laws of Belgium.
- The insurance is valid until you reach retirement age. You can cancel the policy every year.
- Your intermediary is the first point of contact for any complaints you may have. If no agreement can be reached, please contact KBC Complaints Management, Brusselsesteenweg 100, 3000 Leuven, complaints@kbc.be, tel. 016 43 25 94, fax: + 32 16 86 30 38. If you cannot find a suitable solution, you can contact the Belgian insurance industry's ombudsman service: Ombudsman van de Verzekeringen, de Meeûssquare 35, 1000 Brussels, info@ombudsman-insurance.be, www.ombudsman-insurance.be.
This does not affect your legal rights.
Contact your insurance agent for a quote and to calculate your premium.
KBC Individual Protect Plan and KBC Business Protect Plan are products provided by KBC Insurance NV – Professor Roger Van Overstraetenplein 2 – 3000 Leuven – BelgiumVAT BE 0403.552.563 – RLP Leuven – IBAN BE43 7300 0420 0601 – BIC KREDBEBBCompany licensed by the National Bank of Belgium, de Berlaimontlaan 14, 1000 Brussels, Belgium, for all classes of insurance under code 0014 (Royal Decree of 4 July 1979, Belgian Official Gazette of 14 July 1979).
Member of the KBC group.
Read this information carefully before taking out this insurance
* Source: independent health insurance funds
