How to pay your rent when you are independent and disabled? A not-so-insignificant problem that could happen to everyone (and we wish it to no one)
To meet this need, there is “loss of earnings, illness and accident insurance”, essential for sleeping soundly. This is “roughly” the equivalent ofcompulsory accident insurance for employees (LAA).
In short, loss of earnings sickness and accident insurance is:
- Provides financial security in the event of incapacity to work due to illness or accident.
- Includes the addition of accident risk to health coverage and loss of earnings contracts covering illness and accident.
- Customizable waiting times and compensation independent of AVS income.
- Coverage for medical expenses in the event of an accident, daily allowances, and comprehensive coverage against loss of earnings.
Importance of loss of earnings insurance in the event of illness and accident for the self-employed
The importance of loss of earnings insurance for freelancers is evident in the story of Marc, a freelance photographer. After a fall during a photo shoot, Marc found himself unable to work for several months. Fortunately, his loss of earnings insurance provided him with income during this difficult time, allowing him to focus on his recovery without financial stress. This experience highlights how crucial this insurance is for the self-employed, filling the gap before Disability Insurance intervenes and providing essential financial security.
Learn more about insurance for the self-employed.
Available options
The options available for loss of earnings insurance in the event of illness and accident for the self-employed are:
- Addition of accident risk to health coverage: Ensures complete coverage of medical costs in the event of an accident.
- Loss of earnings contract (daily compensation): Covers both illness and accident, with compensation in the event of incapacity to work.
- Customizable waiting period: Allows you to choose a period before compensation payments begin.
- Compensation independent of AVS income: Offers financial security based on an amount agreed in advance.
- Relapse Coverage: In some cases, the waiting period does not apply in the event of a relapse.
It is common for self-employed people to have a loss of earnings contract covering both illness and accident. This approach offers financial protection in the event of incapacity to work due to illness or accident, with compensation set independently of actual AVS income.
How loss of earnings sickness and accident insurance works
The principle of loss of earnings sickness and accident insurance includes a waiting period, which is the period during which the insurance does not pay compensation. Self-employed people can choose this period, often between 30 and 60 days, but it is possible to go down to 6 days at a higher cost.
Let’s take the example of Julien, a cabinetmaker. After a work accident, he found himself with a broken leg and unable to work for several months. Julien has taken out loss of earnings insurance with a waiting period of 30 days. During the first month following his accident, he does not receive compensation from his insurance. However, from the 31st day, the insurance begins to pay compensation until Julien regains his ability to work. If Julien experiences a relapse related to this accident, such as an operation necessary to replace a plate in his leg, the waiting period will not be applied again for this specific relapse.
Loss of earnings insurance is therefore a financial safety net for self-employed people like Julien, allowing them to focus on their recovery without the immediate financial pressure of losing their income. By choosing the waiting period wisely when subscribing, self-employed people can personalize their coverage to balance the cost of insurance and their need for financial protection.
Benefits of insurance for the self-employed
The advantages of loss of earnings insurance in the event of illness and accident for the self-employed are as follows:
- Coverage of medical expenses in the event of an accident : Ensures full coverage of medical costs in the event of an accident.
- Daily allowance : Offers daily financial compensation in the event of incapacity to work due to illness or accident.
- Capital for additional costs : Provides financial support in the event of incapacity to work following an accident or illness.
- Global coverage : Provides financial protection against loss of earnings, including in the event of disability or death.
- Flexibility and customization : Allows you to set daily allowances adapted to individual needs and income.
This insurance is essential for the self-employed, because it guarantees financial security in the face of unpredictable health-related risks.
Example where loss of earnings insurance in the event of illness and accident can be useful
- Case of serious illness : A freelance graphic designer is forced to take extended leave due to a serious illness. His loss of income sickness insurance kicks in, covering his loss of income and allowing him to concentrate on his recovery without financial worry.
- Accident preventing work : A consultant suffers an accident which prevents him from working for several months. Thanks to his insurance, he receives financial compensation, thus preserving his economic stability during his convalescence period.
Of course the list is not exhaustive!
The final word
It’s clear that choosing the right coverage and customizing it to your specific needs is crucial. That’s where Finwise Insurance comes in. With deep expertise and a commitment to personalized solutions, Finwise is your insurance ally. Do not hesitate to contact us for expert advice!