Temporary Incapacity Insurance: what you need to know to be covered in the event of sick leave
Imagine you wake up one day with an injury or illness that prevents you from going to work. You don't know how long you will be off work, but you do know one thing: your expenses are still there. How can you protect your income during this period? This is where the Temporary Disability Insurancea simple solution that offers peace of mind in times of uncertainty.
What is Temporary Disability Insurance?
This is a policy that financially compensates the insured while he/she is unable to work due to illness or accident. Its main objective is to complement the Social Security benefits, which are often not enough to cover all the usual expenses.
Compensation is received in the form of a fixed payment for each day of sick leaveIt can start from the first day or after a short waiting period, depending on the conditions of the contract. The maximum duration of this type of insurance is typically between 365 and 545 days.
What does temporary disability insurance cover?
Coverage may vary according to the policy taken out, but these are the most common ones:
- Daily allowance due to common illness, occupational or non-occupational accident.
- Additional coverage for hospitalisationin case of medical admission.
- Protection by surgeryif the insured person needs to undergo surgery.
- Premium refund option in case of unemployment or involuntary unemployment (in some specific policies).
This type of insurance is not only useful for the self-employedIt can also be a safety net for wage earners seeking to maintain their standard of living during a period of sick leave.
Don't put your income at risk
Take out your Temporary Incapacity Insurance and protect yourself against illnesses or accidents that prevent you from working.
Compensation arrangements
There are two main ways of calculating daily financial compensation:
With scale
The insurer establishes a fixed number of days for each type of pathology. For example, a clavicle fracture may be associated with 40 days of compensation, regardless of the actual time of sick leave.
No scale
In this case, the payment is made on the basis of the actual number of days of incapacityThe medical reports and the official sick leave form must always be provided.
Temporary incapacity insurance for the self-employed
For the self-employed, this insurance can be a lifesaver. Unlike employees, the self-employed do not have a company to supplement their income during sick leave. Therefore, having a policy adapted to their profile allows them to continue to fulfil their personal and professional responsibilities without getting into financial difficulties.
In addition, premiums for these insurances may be deductible. in personal income tax up to a certain limit, if taxed under direct assessment. This is a very interesting tax advantage for those who manage their own activity.
How much does temporary disability insurance pay per day of sick leave?
The amount depends on the capital contracted. There are policies that allow you to choose between several daily indemnity options. The most common amounts are usually:
- 20 €
- 30 €
- 45 €
- 60 per day
This amount is paid for the number of days that the insured person is on sick leave, always within the duration limit established in the policy. To determine which is the best option in your case, the best thing to do is to contact a professional advisor, such as those at La Web de Seguros They will be able to guide you according to your personal and work situation.
Are there any grace periods?
Yes, as in most health insurance there are shortcomings. These are the most frequent:
- Common diseases: 2 to 3 months.
- Surgeries and hospitalisation: 2 to 6 months.
- Pregnancy or childbirth (if covered): between 6 and 8 months.
The waiting period is the time that must elapse between taking out the insurance and being able to use certain coverages. It does not apply in the case of accidents, which are usually covered from day one.
What factors influence the insurance premium?
The price of this type of policy depends on several elements:
- The contracted daily amount (i.e. how much you want to receive per day).
- If you choose the with or without scale.
- Your age and professional activityThe risk is higher in some professions.
- The franchise period you select (e.g. if you decide to be paid only from the 4th day of sick leave).
- Additional coverages such as hospitalisation, surgery or pregnancy.
What does it take to hire him?
A medical examination is not normally required. However, it is common to be required:
- A health declaration to assess risks.
- Documentation that accredits your employment activity (self-employed or employment contract).
- Election of the type of insurance and the desired daily amount.
Once all this has been done, you can count on real protection in the event of sick leave.
Why take out temporary disability insurance?
This insurance is a very useful tool to protect your economy against unexpected situations. It is not about spending more, but about be forewarned when you can't work. Because a medical leave does not give notice, but it can seriously affect your income.
Especially if you are self-employed or self-employed, this cover gives you the peace of mind of being able to recover without financial worries. And if you are an employee, it allows you to complement public aidwhich are not always sufficient.