How daily allowance insurance works

Sometimes, life's surprises can be unpleasant. Traffic accidents, illness, accidents at work, death, etc. are all unexpected events that affect thousands of workers every year. Unfortunately, these situations often result in loss of income for the victim's family, especially if the victim does not have good cover. That's why daily allowance insurance is essential for all employees, whether in the public or private sector. There are even supplementary insurances that allow policyholders to receive daily allowances to cover all their needs. This is a real opportunity for both the employee, who will be able to maintain his or her standard of living, and his or her family, who will be protected from certain financial difficulties.

Why is daily allowance insurance essential?

The advantage of daily allowances is that they enable workers who are off work to be compensated according to their scheme. However, many people encounter enormous difficulties, especially if they are off work for a long time.

In the case of an employee, payment will be made by the employer, the Social Security system or the company's group provident scheme. In the case of Social Security, the employee will be compensated for 50 % of their gross salary. If they are also covered by a company provident scheme, they will no longer receive daily allowances after 180 days (6 months). So if you are off sick for a long time, you will not receive enough compensation, which will even call into question your convalescence or your possible integration into the workplace.

For self-employed professionals, the compulsory provident scheme will pay them daily allowances when they are no longer fit to carry out their activities. However, the compensation is particularly low and will be limited in time. If you are a shopkeeper or craftsman, for example, you must have an annual income of €3,698 or more to receive compensation ranging from €5.07 to €52.11 per day. If your income is below this figure, you will have no chance of receiving compensation. If you are self-employed, you will not receive any compensation if you are off work, unless you work in the medical sector. In this case, the compensation varies according to the profession and can be as much as 96 euros per day. However, it will only be paid after 90 days' absence from work.e day's absence from work.

That's why it's essential for workers to take out daily allowance insurance so that they can receive an income, whatever their status or the seriousness of their situation.

What is the solution with daily allowance insurance?

These days, there are several insurance companies offering policies to suit every profile. Whether you are self-employed or an employee, you will benefit from personalised insurance that will help you if you are off work. It's a supplementary insurance policy that improves on traditional cover, which is proving insufficient for workers in difficulty.

Together with the insurer, you will take stock of your situation and your needs in terms of compensation. With the help of an advisor, you will be able to diagnose your rights and identify any gaps in your social protection. Next, a lump-sum daily allowance will be determined to enable you to receive payments that are commensurate with your needs.

Even the duration of the excess can be negotiated, so that you have all the insurance you need. Here, the excess corresponds to the period during which you will not receive any daily allowance from the insurance company. You can choose an excess of 6 months to cover all the costs.

It should also be noted that daily allowance insurance is not taxable, which is a major financial advantage for beneficiaries.

Can companies take out daily allowance insurance?

In companies, professional partners have the option of taking out daily indemnity insurance. This is cross-insurance between partners and works as follows:

  • The subscriber and beneficiary of the daily allowance insurance policy will be able to integrate another insured person who will benefit from the same advantages as the subscriber.
  • In the event of the death of a partner, the other insured will receive a capital sum that will enable him to buy out the deceased's shares.

This type of insurance offers a number of opportunities for companies, especially small and medium-sized enterprises. In addition, beneficiaries can benefit from solutions if the compulsory provident scheme does not recognise their disability. The insurance company will assess their situation and pay them daily allowances to offset certain expenses.

Relieve your family in the event of death

The greatest advantage of daily allowance insurance is that payments are not limited to the insured. In the event of death, for example, daily allowances can be paid to the spouse or children. The insurer will take into account the professional situation of the deceased to determine the amount to be paid to the family.

For employees, Social Security generally pays a lump sum of 3,400 euros, which is often supplemented by the company's provident scheme. For the self-employed, compensation is estimated at 7608 euros. These sums are therefore insufficient to provide the deceased's family with an adequate standard of living.

On the other hand, if you take out daily allowance insurance, your spouse will be able to receive an annuity for life, or a lump sum if he or she meets certain conditions. For children, an education annuity will be provided to enable them to continue their studies under the best possible conditions.

Find the best deal with a comparison tool

If you haven't yet found the ideal insurer, you could be in for a bargain. With an insurance comparison tool, you can shop around for the best deal in just a few minutes. It's a highly efficient online service that lets you get the best quotes on the market. Whether you're self-employed, an employee or a company director, you can compare the offers and choose the one that best suits your requirements. You'll find the best value for money and have the opportunity to be compensated if necessary.

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