The insurance or subsidy is the most demanded by the self-employed. If you are one and you don't know why they do it, we explain it to you in this article.
Why take out temporary disability insurance?
Income and contribution decoupling
A self-employed person has a certain income, but nowadays, his or her contribution is completely disconnected from this income.
What this means is that, although you may earn €2,000-3,000 per month as a self-employed person, or even more in some cases, 90 % of self-employed people pay the minimum contribution (i.e. in 2018), 920 €/month). This contribution base is the figure on which percentages are applied to determine the benefits provided by Social Security.
If in the event of sick leave you are paid 75% of your contribution base, i.e. 663.30 euros per month, from which we must subtract the RETA contribution, your net income is less than €400. WE HAVE A PROBLEM.
Disability and long-term illness
The serious diseases, Unfortunately, they are growing year by year. In our humble opinion, you do not take out an insurance policy for a month's or a few weeks' sick leave.
The reason must be that some serious health problem, whether caused by an illness or an accident, takes us away from our profession for a long period of time. We are thinking of a traffic accident, a cancer, a stroke... Those who have a serious health problem, whether it is caused by an illness or an accident, should be able to take time off work. problems that prevent us from working and earn the money our family needs.
It provides a tax benefit
We know you are always trying to reduce your tax bill. If you are self-employed and pay direct taxation, you have the right to deduct this insurance for tax purposes. up to €500 per year.
Also employees with high incomes
If, on the other hand, you are a salaried employee/employee, and you earn more than the maximum Social Security contribution (for 2015 it is 3,606 per month), this means that in case of cancellation, you will receive a maximum of 75% of this amount.
So those people who have salaries above €50,000 per year, they are faced with a lack of coverage.which is the difference between the salary they receive every month and what Social Security will pay them when they are on sick leave at most (€2,704 per month in 2015).
The importance of your family
Because you and your family are the most important thing, and it is our responsibility to make families aware of the benefits to which they are entitled and what gaps may exist in the various contingencies that may occur. If we are used to a certain standard of living with a certain income, we must ensure that, come what may, we will do our best to maintain it.
Social Security benefits for the self-employed
We leave here an attached file that we believe may be of interest, especially to those who are in the RETA, to analyse their particular situation, even with some practical examples.
We believe that our job is to advise, and as such we carry out personalised studies to calculate this lack of coverage and how to solve it. If you need us to explain all this in more detail, do not hesitate to contact us. If you want to find out more about personal insurance, Here is a link.
