Why guarantee your income as a self-employed individual?
4 min
As a self-employed individual, being unable to work can have severe financial consequences. And the statutory protection provided by the health insurance system is often far from sufficient. To get a better level of cover, you can take out income protection insurance. In this article, we illustrate the benefits using a practical example.
Your statutory rights
In what circumstances are you entitled to an allowance?
Since 1 July 2019, the statutory protection system has changed. The waiting period for receiving the flat-rate allowance from INAMI/RIZIV no longer exists: as a self-employed individual, if you’re unable to work, you now receive an allowance from the day one, provided that you’re unable to work for more than seven days.
Although this is a step forward, the allowance remains limited and falls far short of covering people’s day-to-day expenses.
How much are you entitled to?
If you’re unable to work for less than eight days, you receive no allowance.
If you’re unable to work for eight days or more, you’ll receive a flat-rate allowance, paid from the first day and in arrears, for the first year in which you’re unable to work. The amount depends on your family situation:
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- €63.01 gross per day for single people
- €48.32 gross per day for people who are cohabiting
- €79.51 gross per day for people with dependents
What if you’re unable to work for more than a year?
From the second year, if you’re cohabiting, you receive €54.02 gross per day from the moment your business activity ceases. For a single person or a self-employed individual with dependents, the amounts remain the same as in the first year.
These gross amounts have been applicable since 1 February 2025, and they will be index-linked. They are paid for six days a week or twenty-six days a month in principle. For example, for a self-employed individual with dependents, this represents €2,067.26 gross per month for the first year in which they are unable to work. That’s a welcome contribution, but probably not enough.
Example: the consequences of an accident for a self-employed individual
What income will the family receive after the accident?
Jonas, 35, is a self-employed accountant. He is married to Inès and has two young children. His income is €4,000 gross per month. Inès is a part-time teacher (80%) and earns €1,900 gross per month.
Jonas suffers a serious road accident. After two months in hospital, he has a long period of rehabilitation ahead. His work income of €4,000 disappears, but he gets the statutory allowance of €2,067.26 gross per month. The upshot is that the family’s monthly income drops drastically, from €5,900 to €3,967.26.
Of course, his fixed expenses haven’t disappeared: mortgage, personal loan, the cost of renovating his home, water, heating and electricity bills, childcare costs for his youngest child, medical expenses for the eldest who suffers from asthma, etc.
What if he had taken out income protection insurance?
Fortunately, Jonas had the foresight to protect his income via an insurance policy*. Income protection insurance provides a guaranteed monthly income if you’re unable to work, in addition to the statutory INAMI/RIZIV allowance.
When taking out this insurance, Jonas was able to choose from several formulas. It’s not possible to insure more than 80% of your professional income, so he selected an additional income of €3,000 per month in the event of his being unable to work.
The policy pays €36,000 per year, increasing by 3% per year, expires at age 67 years, has a waiting period of 30 days and provides cover in the event of illness and accident.
In return for this protection and the peace of mind it brings, Jonas pays €1,460.55** per year. The premium increases each year by €43.82**, and it’s tax-deductible as a business expense.