Guaranteed income insurance also up to age 67
3 min read
This article applies to self-employed people who have taken out guaranteed income insurance with an end age of at least 60 years, and at most 65 years. This concerns stand-alone guaranteed income policies, as well as supplementary cover in, for example, an IPT (an individual pension commitment funded by your company) or a VAPZ (the free supplementary pension for the self-employed).
- The premium waiver cover does not fall within the scope. - Turnover insurance does not fall within the scope. - Supplementary insurance linked to pension saving or long-term saving does not fall within the scope. - Non-occupational guaranteed income insurance for employees does fall within the scope.
Below we focus mainly on the situation for the self-employed because this will be the most common situation in practice.
As a self-employed director you are aware that in the event of incapacity for work you receive a limited benefit from social security. Guaranteed income insurance then offers you additional financial security. Until recently such insurance usually ran until the age of 60 or 65 years. But with the increase in the statutory pension age from 2025, it is important to extend your guaranteed income insurance up to that statutory pension age, for example up to 67 years.
Extending the duration of an existing policy usually involves medical and financial acceptance because the risk for the insurer increases as a result. That is why an extension of an existing policy is very often not carried through, which is of course regrettable.
The insurers' federation Assuralia has now drawn up a code of conduct that is in force from 1 January 2024. This code of conduct stipulates that insurers must offer the self-employed the possibility to extend their guaranteed income insurance without a medical questionnaire or examination. This possibility is offered until the end of the period to which the code of conduct applies, namely until 1 January 2027.
The insurer may make a proposal that you are free to accept. Usually the premium will be more expensive than your current premium.
What if I have already received a benefit under the current policy?
In other words: “What if the insurer knows that I have, or have had, a certain condition?”. The insurer may rely on knowledge of the medical history of the insured self-employed person. This may mean that the extension proposal the insurer makes will not give rise to a medical questionnaire, but could nevertheless contain an exclusion or an additional premium. However, that exclusion or additional premium will only relate to the cover period after the current end term.
What if there is already an additional premium or exclusion in the current policy?
The exclusions or additional premiums provided for in the current insurance remain applicable in the proposed insurance with an extended end term.
What if I am currently already incapacitated for work?
The insurer decides whether, and under what conditions, it proposes insurance with an extended end term. It is still too early to give concrete examples here.
What should I do if I am a self-employed director and a client of Life Experts, and have a policy that falls within the conditions of application?
You do not have to do anything, you will be notified of the possibilities either by us or by the insurer. You can always contact us for more information.
What if I do not yet have guaranteed income insurance?
If you have not yet taken out guaranteed income insurance, now is the moment to do so. This way you ensure financial security for yourself in the event of incapacity for work. This is an important step in securing your financial future. As an insurance intermediary, Life Experts can help you take out guaranteed income insurance or turnover insurance that matches your needs and budget. We can also inform you about the new code of conduct and its impact on your insurance.
Feel free to get in touch for more information.
Questions about your own situation?
This article is general information. Your adviser will look at what it means for you.