An occupational disability can happen to anyone and, therefore, it is essential that we know how to protect ourselves from it.
Once again, it is the self-employed who are most disadvantaged: the difference in pensions between employees and the self-employed in the event of disability is extremely high.
Let’s see why it is important to take out a good complementary insurance policy!
Differences in occupational disability pensions between self-employed and salaried workers
As we have already mentioned, there is a The difference between what a salaried employee would receive in the event of disability and a self-employed person is very large.
Let us assume that a worker suffers a permanent disability. If he/she were an employee, he/she would receive, on average, about 1,187 euros per month. On the other hand, if he/she were self-employed, he/she would receive about 842 euros per month. That is, 330 euros less.
What types of disability are recognized by Social Security?
There are 5 types of work incapacity recognized by Social Security:
- Temporary incapacity: this occurs when the worker suffers an accident or illness. He/she can be reinstated in a more or less short period of time.
- Partial disability: does not completely prevent work, but decreases performance up to 33% permanently.
- Total permanent disability: the worker can no longer exercise his or her usual profession, but can work in a different position.
- Absolute permanent disability: the difference with the previous one is that it completely prevents from performing the usual profession and any other.
- Severe disability: in this case, not only is the worker unable to perform any professional work, but he/she also needs the assistance of another person for daily living (eating, driving, dressing, etc.).
Types of insurance that cover these disabilities
These are the insurances that would cover a sick leave due to incapacity for work:
- Subsidy insurance: allows you to receive payments from an insurance company to supplement those received from Social Security.
- Accident insurance: these insurances cover all types of partial disability and sometimes also total and absolute disability.
- Life insurance: will cover total and absolute disability.
Why life insurance?
A life insurance policy will cover even disabilities that are caused by illness. Not only those caused by an accident.
In addition, if you need to take a leave of absence due to incapacity for work, you will be assured of a high benefit. Often, the one offered by the Social Security is scarce. Especially for the self-employed.
When taking out a life insurance policy, take into account some aspects:
- The company must be financially solvent.
- Make a contract appropriate to your financial situation.
- Find out about the coverage you need according to your profession.
Are you still doubting whether to take out an insurance policy to cover you for a possible sick leave due to incapacity for work? We will help and advise you to choose the one that best suits your situation.
Do not hesitate to call or write us and we will be happy to assist you.
