The self-employed can extend their work incapacity insurance to the age of 65 since 1 June. What are the options and to what extent will this affect the insurers' pricing?
On 1 June, the professional association of insurance companies Assuralia published a code of conduct that allows the self-employed to extend the term of their work incapacity insurance to the age of 65 if they wish.
More than 61,000 self-employed have insurance that provides a guaranteed income up to the age of 60 to 64. As the conditions for early retirement have become stricter and many people have to work longer, it is advisable to adjust the guaranteed income to the extended retirement age.
The code of conduct applies to current guaranteed income insurance policies that meet the following cumulative conditions:
The insured works as a self-employed person.
The insurance pays out annuity if the self-employed person is incapacitated.
The policy’s current final age is 60 to 64.
This is regardless of whether the work incapacity insurance is a separate policy or supplementary cover as part of a pension plan.
In the above case, self-employed persons can request a proposal from their insurer to extend the final age of their work incapacity insurance to 65 without having to complete a (new) medical questionnaire. They must submit their request before 1 June 2021 and before the current policy’s cover ends.
If self-employed persons do not submit the request in time or do not accept the new insurance proposal, they retain the right to request an extension proposal later. However, in that case, the insurer is no longer bound to the code of conduct and can require that certain medical formalities are met. If the self-employed person is incapacitated at the time of the extension request, the insurer is free to decide the terms of the insurance proposal.
Vanbreda is still considering how each insurer will apply this code of conduct in practice and to what extent this will affect areas such as their pricing.
If you would like to explore your options to extend your policy, do not hesitate to contact your account manager.