Why you might need insurance to protect your income

It’s not something most people like to think about – but if you find yourself unable to
work through ill health, what will this mean for your income?

A 30-year-old in the Netherlands is more than twice as likely to be disabled than to die before he or she reaches the age of 60, according to figures from the Dutch benefits agency UWV.

In fact, 9% of the over-30s and 15% of the over-40s are likely to end up claiming disability benefits because of ill health before they reach retirement age. 

The risk may seem small, but it is important to consider what it would mean for your income if you, or your partner, end up unable to work because you were ill or had had an accident.

While people who are employed in the Netherlands are covered by the state-run disability insurance scheme (WIA), the self-employed and people posted here from abroad may well find themselves without an income at all. And if you are a high earner, you might find the WIA scheme won’t provide enough to meet your needs.

In fact, around four in five self-employed people in the Netherlands do not currently have any form of income protection and the government is working on plans to make this compulsory, at a very basic level at least. 

But for people who work across countries – and who might find themselves posted to a new location with little notice – a policy that covers the mobile lifestyle may be a better and a more immediate option.

Disability insurance isn’t just for accidents and injuries either. In fact, illnesses like cancer, heart problems and diabetes cause most long-term disabilities and are among the leading causes of existing disability claims.

This is why disability insurance, along with life insurance and a retirement plan, can be crucial to your financial protection.

FVB de Boer is working with Clements Worldwide to offer an income protection insurance package which has been specially designed for international workers.

The coverage extends to over 180 countries, including your home country, to prevent breaks in coverage that can leave you and your family vulnerable should you move to a new location. And you don’t need a medical test to sign up, unless you have certain prior health conditions. 

The package covers both injury and illness, including those which are workplace-related and the policy is also open to all occupations, whether you are an investment banker or a chef.

If you should become unable to work you could receive a monthly benefit of up to 60% of your    gross monthly salary up to $20,000 or whichever is lower for up to 120 consecutive months. And if you are unable to work at all, you could receive a lump sum calculated at up to five times your annual income or up tp  $500,000 or whichever is lower

To find out more about private disability insurance here.