Ideal for employees
The first 30 days your employee is ill you as an employer are required to continue paying the individual's wages, after which the employee is entitled to replacement income benefits paid by the mutual insurance fund. However, depending upon the individual's family situation, these benefits are not always enough to maintain the person's standard of living.
Guaranteed income insurance offers your employee a further allowance on top of the health insurance fund payment. During this period you are also exempt from having to make premium payments for this policy (if you have opted for this guarantee).
The payments to your employee are taxed as replacement income benefits, while the premiums may of course be deducted in full as professional costs.
Essential for the self-employed
Self-employed people who are unfit for work for a long period of time have no safety net at all to rely on. Their health insurance fund payments are even lower. In the case of self-employed entrepreneurs a guaranteed income insurance is much more a necessity than a luxury.
N.B.: many self-employed people pay themselves a low wage, which obviously has an impact on the level of replacement income benefits in the case of a disability.
