Disability insurance premium 2023

Which disability insurance (AOV) will you take out and how high will the premium be? Good and affordable disability insurance is available in 2021 for entrepreneurs and especially self-employed people. Sometimes a health declaration is required. The premium is not the same everywhere, so pay close attention to the coverage offered so that you are really assured of an income. An AOV insures a supplementary income in the event of disability. Take income insurance with the lowest possible premium, but which does cover the risk it is intended to cover. Avoid unpleasant surprises. Good disability insurance is often tailor-made.

Disability insurance is tailor-made, the cheapest AOV is not always the best

Disability insurance, AOV, is in fact tailor-made. Not every entrepreneur or self-employed person is in the same circumstances and runs the same risks. You must therefore make choices that suit you. Choices that can also significantly reduce your premium. An AOV is usually not cheap, but not taking out income insurance is often expensive if something unexpected happens to you.

Why take out disability insurance or AOV insurance?

In general, there are a few good reasons to take out an AOV as an entrepreneur or self-employed person, self-employed person, freelancer:

  • There are no other sources of income that you can fall back on if you lose your job due to disability.
  • The organization you belong to requires you to take out an AOV.
  • The bank requires that you take out disability insurance.

Reduce your AOV premium with the AOV meter

There are several ways to reduce your insurance premium. Once again it is custom work, but a few points of attention can be given:

Determine your deductible in the event of disability

The period you can get through without receiving insurance benefits determines the deductible you are willing and able to take. You can choose this waiting period between disability and benefit yourself. Will it be a short period of two weeks or will you opt for a waiting period of one year? The longer the waiting period, the lower the premium.

What is your AOV benefit threshold?

The benefit threshold is related to the degree of disability. By default, the threshold is set at 25 percent disability. If you choose a threshold of, for example, 50%, the premium will be a lot lower.

Up to what age does the insurance pay out?

The shorter the benefit period you choose, the lower the premium. For example, if you have a nest egg or a good pension, you can have your benefits stopped at the age of 60. Those who do not have this are better off opting for a longer duration, but also pay a higher premium.

What is your AOV benefit amount?

The AOV benefit is often a maximum of 80 percent of the last earned income. You can also choose a lower percentage.

Occupational disability or suitable employment?

It makes quite a difference whether you want to be insured on the basis of your current profession or on the basis of suitable employment. If you become incapacitated for work, you will not be required to look for another job based on your current profession before payment is made. If you are required to perform suitable work, there may still be many employment options available, based on your education and experience, for example. Because the latter variant costs less in practice, it is also cheaper insurance.

How much premium do you have to pay for disability insurance, do you have to pay an age-related premium?

The standard premium remains the same throughout the entire term, excluding indexation for inflation. You can also opt for an age- related rate that increases as you get older and the risk for the insurer increases. Those who choose the standard rate pay relatively too much at a younger age, but relatively too little at a later age. With the standard rate, the rates are in fact averaged. See what is cheapest for you.

What are you now insured for with the AOV, the coverage?

A number of things that reduce premiums can be excluded from the insurance. Think about:

  • Burnout and overload;
  • Maternity leave;
  • Mental illnesses.

On the other hand, additional items can also be included in the insurance, such as accident insurance or an annual medical scan.

What indexation of the insurance applies?

With indexation, everything is indexed: the premium, the insured amount and the benefit. The degree of indexation you choose determines the premium. Full indexation is much more expensive than partial indexation or no indexation.

Take out disability insurance in 2021, adjust the premium to the risk you want to cover

Always take into account the risk of reduced fitness for work at any time. Therefore, secure your income with a good AOV. Always request sufficient quotes and carefully compare the insurance conditions with your wishes. With an AOV you are well insured for a reasonable premium of an appropriate replacement income in situations where this is necessary.

read more

  • Why a health declaration?
  • Allowance for disabled people 2020