Protection
Turnover cover
In many companies, turnover depends on one person: the company director. If that person is no longer there due to illness, accident, or death, turnover falls away with them, but the costs do not.
- Who we help
- Companies whose turnover strongly depends on the company director.
- The tax benefit
- For tax purposes a company director's insurance: the premium is deductible in the company.
What is turnover cover?
As a self-employed person in a company, you probably keep your salary fairly limited, and incur quite a lot of costs in your company. But what happens in the event of disability or death?
In the event of disability
In the event of disability, you can cover up to 80% of your salary through disability cover, possibly as an additional guarantee alongside your IPT (an individual pension commitment funded by your company), VAPZ (the free supplementary pension for the self-employed), or RIZIV (the national health and disability insurance institute) agreement. But what about your company's turnover? You can cover this through turnover cover. This is very important, because your disability must not cause your company to be unable to pay its costs or to have to be liquidated. Turnover cover ensures that your company also has income during your absence. The costs can be paid and your "business barometer" stays in the green.
In the event of death
You can also cover death through life cover, possibly as an additional guarantee alongside your IPT, VAPZ, or RIZIV agreement. Your next of kin then receive a payout directly from the insurer. But what about the loans the company has entered into? You can also cover these through turnover cover. Turnover cover ensures that the outstanding debts can be paid off by the company, and that the company can be sold or liquidated without problems.
Who is it for?
Every self-employed person with a company, regardless of the number of managing directors.
Our tips
Some insurers base the amount to be insured on the turnover allocated to the insured person. Others, in turn, base it on the gross margin in your company. Life Experts helps you make the right choice based on your specific situation.
Taking out the right turnover cover: an art that Life Experts has fully mastered
Our experts determine the right choice with you:
- What amount do you want to insure?
- May this amount vary over time?
- What waiting period do you want: 30 days, 60 days, or longer?
- What payout duration is desired: a limited cover period based on, for example, a loan, or until age 60, 65, or 67?
- Do you want to insure CFS, burnout, or depression, and what is possible there?
- What do you want to happen to the payout if the company ceases to exist?
- Is it important to you that you can convert a monthly annuity into a one-off capital sum?
- To what extent can the policy be adjusted by the insurer?
- Is your specific occupational risk covered?
- Are your leisure activities sufficiently covered?
- What medical formalities can you expect?
- What financial formalities will there be?
- Can you later convert the turnover cover into an additional invalidity guarantee, linked for example to an IPT?
- What impact does all of the above have on the cost of the policy?
Taxation
For tax purposes, turnover cover is a so-called company director's insurance.
On the premium
The premiums paid are tax deductible in the company. There is a premium tax of 4.4% on the death portion and 9.60% on the disability portion.
On the payout
The income in the company is subject to corporation tax as miscellaneous income (account 710). As a result, it may be advisable to insure more than the outstanding debt. We are happy to help you with that calculation.
Does this fit your situation?
You will get an honest answer, even if that answer is "no".
Disclaimer: Life Experts provides insurance solutions for self-employed directors, liberal professions, SMEs and large companies. You will find the basic information for each type of solution on this website. With the product descriptions and the product overview on this website, we do not aim to follow a tax or legal classification, but a pragmatic and practical one. A turnover insurance, for instance, is fiscally a company-director insurance. And a death cover or a disability insurance can be taken out within the tax regimes of IPT, VAPZ, POZ, long-term saving, pension saving, and so on.