How useful is occupational disability insurance anyway?

Disability insurance if you work as an employee? Then it can be very useful. Read here why and compare your occupational disability insurance directly..

We regularly receive questions like, “Can I buy disability insurance as an employee or disability insurance as an individual?” Or is disability insurance necessary in employment? The answer to these questions is simple: yes, it is possible to purchase occupational disability insurance (DI) if you are employed. You can take out this BUV through the insurers below..

The occupational disability insurance in the employment relationship are all concluded through the employer, right? That’s all very well regulated, isn’t it? That is indeed what most people think, and yet that is a big mistake. If you become disabled as an employee, there is a chance that you will face a (significant) loss of income. In fact, that chance is quite high. And if you are determined to be less than 35% unable to work, you will not be eligible for benefits. And that can have far-reaching consequences, especially if you are a single earner or have taken out a fairly large mortgage.

Speaking of disability: Due to the impact of the economic crisis and the fact that people are now being forced to work longer hours, the number of disabled people increased significantly last year. This was the first time in years. Experts estimate the growth at about twelve percent.


Sick leave and disability in employment

You are incapacitated for work if you can no longer work due to an illness or accident. Incapacitated is a term that is also used when you are partially unable to do your job. Therefore, it is something other than a “normal” sick leave. Headaches in the form of migraines, for example, can cause you to miss work. However, you are not then incapacitated for work. In addition, it is not possible to declare yourself unable to work, even if you sometimes tend to do so, but only a doctor can stamp “unable to work”. The insurance doctor then determines the degree of disability and indicates what is still possible in the field of work.

BUV by employee in case of high monthly expenses

If you become disabled and are employed, you are covered through your employer. In certain situations, it may make sense to take out employee disability insurance yourself. This is certainly the case if you are not or not sufficiently insured against disability through your employer and if your monthly costs are rather high because you used to have an expensive mortgage. Taking out disability insurance as an employee also makes sense if you are the only one at home earning an income and thus making a living.

Profit from occupational disability insurance

sammy williams 53bht9urH1A unsplashFor the first two years of disability, you will continue to receive your wages “normally” through your employer. After this period, you may be entitled to a benefit (work and income under the Workers’ Compensation Act). This law focuses on the opportunities you still have and will encourage you to take advantage of every opportunity that still exists in the labor market. Within its framework, there is return to work for the partially disabled and income support for the long-term disabled.

By the way, during the two years you are sick, you cannot be dismissed (in case of employment). At the end of the two-year disability period, your employer can terminate the contract, even if it is indefinite, provided they have done everything they can to get you back to work. Next, you must apply for benefits. Only when you are totally and permanently incapacitated will you be eligible for the allowance. Totally disabled means you are no longer able to earn more than one-fifth of your last salary, and permanently disabled means there is little or no chance of recovery.

Disability insurance more expensive for employees than for self-employed

It is sometimes said that employed people pay less than entrepreneurs when they take out disability insurance themselves. This is not true, because apart from the premium they pay themselves, they also pay the “normal” premium through their employer. Since these premiums are deducted from gross salary, the amount is not clear. What is certain is that an employee spends about 14% of their gross salary on disability insurance. A self-employed person, on the other hand, often spends no more than 7% on disability insurance, and in this case you can also choose other conditions. In short, if you are a dependent, you are more likely to pay more than less if you need to insure yourself as a self-employed person.

Disability insurance as an employee is a comforting thought

Bottom line: are you employed and receive an above-average salary every month that you have to earn yourself? Then take out disability insurance yourself. Then you’ll have the peace of mind that you’re well covered, even if your employer is uninsured or underinsured, and you can continue to pay off your mortgage and feed your kids well. It’s a comforting thought, isn’t it?

What are the costs of disability insurance for an employee?

Disability insurance for workers or employees costs a little different for everyone. It all depends on what you want to insure. What must be paid out if you become unable to work? And at what percentage of disability should the insurer pay? Your occupation and age also affect the premium. Do you have a physically demanding job in construction or do you work mainly behind a computer as a freelancer? With an insurance comparison, you can quickly find out what occupational disability insurance will cost you.

Disability insurance not compulsory, but very practical

Taking out occupational disability insurance is not compulsory if you are gainfully employed. However, it can be a very convenient. Do you have a large mortgage and children who are students? Then you want to be able to pay those expenses if you become unable to work. Or maybe you have little or no insurance from your employer. What then? Let’s say you have an accident on a ski vacation or crash on the road. Your bills and fixed expenses continue, even if you have no income. In short, occupational disability insurance is important not only for the self-employed, but also for people who work as employees.

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