Sick Leave Insurance with or without Scale?

A sick leave insurance for the self-employedAll of us who are self-employed know that it is essential. The benefits provided by the Social Security are very low in the event of temporary disability (although the fees they charge us are increasingly higher). In this post we talk about whether our sick leave insurance (also known as ILT), we should have scales or not.

Benefit in the event of Social Security sick leave

If we take a leave of absence, all those self-employed who contribute at the minimum (or, from 2023, in the lowest contribution base brackets), we are in a very complicated situation. We would be surprised to know how much we will earn while on sick leave. And the fact is that with a contribution base that, even with an income of up to €2,500/month, is around €1,000, we can understand that the rights we have when we are on sick leave are really reduced.

• The monthly fee is between 230 and 300 €/month.
• In the event of sick leave up to the 20th day, 60% of the contribution base is covered and, from then on, 75%. That is, a little less than 600 euros the first month, and a little more than 700 euros the following months.

In other words, if we are on long-term sick leave, we have a very limited public subsidy that has to be paid monthly, and we need a supplement to make ends meet.

The “corporate” self-employed have a similar situation: a minimum contribution base of 1,000 euros and a contribution of around 310 euros per month.

With or without scale?

The main purpose of sick leave or self-employed insurance is to complement this public benefit.

After all, a person who, for example, is used to earning 1,500-2,000 euros every month, cannot subsist on 700 euros.

This policy is therefore taken out, with subsidies starting at 900 euros per month, going as high as 10,000 euros per month for the highest incomes.

The question here is which option is more convenient to protect the self-employed:

1. Policy WITH scales: in such a way that, depending on the pathology for which the self-employed person takes sick leave, X days of indemnity correspond to him/her.
2. Policy WITHOUT scales: as many days are paid for as long as the sick person is on sick leave.

Which ILT insurance option seems best for us?

The truth is that each has its advantages and disadvantages.

• Insurance WITH scales
  1. It is almost immediately payable: once you know the cause of the sick leave, you already know the days you will be paid.
  2. The self-employed can register whenever they want, without depending on whether they are paid or not, since the payment has already been made (insurance without scales is not like this).
  3. It does not cover possible relapses or complications in the medical process, so you may be uncovered if your sick leave lasts longer than what the company has paid you.
  4. It is usually more economical than a no-fee policy, precisely because it covers fewer procedures; it usually pays for fewer days.
• Policy WITHOUT scales
  1. By paying as many days as the time the person is on sick leave, we guarantee that there will be no coverage gap (it is a very big risk not to have this).
  2. If the self-employed person wants to return to work, he/she must inform the company, which will stop paying the subsidy.

Therefore, it will depend on what each person is looking for. For us, PIB Group Iberiathese are the best sick leave insurances.

Do not hesitate and contact us to enjoy exclusive rates nationwide. The best price for self-employed sick leave insurance.