Income protection insurance: real protection if you cannot work

It is an individual insurance contract that pays a monthly benefit if the self-employed person is unable to work (illness or accident). This benefit tops up the flat-rate NIHDI (INAMI/RIZIV) benefits, €1,704.56 a month for a single person and €2,148.64 with dependants in 2026, which fall well short of a normal professional income.

The waiting period (the time before the benefit is paid) is chosen in the contract: 30, 60, 90, 180 or 365 days are the standard options. The longer the waiting period, the lower the premium. Choosing a 90-day waiting period typically cuts the premium by 20 to 30% compared with 30 days, but assumes you have enough cash to cover 3 months without a benefit.

Insurers' standard rule caps the insured benefit at 75–80% of gross professional income, to keep an incentive to return to work. In practice, a self-employed person earning €5,000 a month gross can generally insure a benefit of between €3,750 and €4,000 a month. The benefit should be reviewed whenever your income changes significantly.

Yes, 100%. Premiums are deductible as necessary business expenses (article 49 of the Income Tax Code), whether you trade as a sole proprietor or through a company. The flip side: the benefit received during incapacity is taxable as replacement income for personal income tax (articles 32–34 of the Income Tax Code), with withholding tax deducted at source by the insurer.

For a 35-year-old non-smoker in a profession without high physical risk, with an insured benefit of €3,000 a month, a 90-day waiting period and cover to age 65, the annual premium is typically between €800 and €1,400 a year depending on the insurer. The same cover at 50 typically costs €1,800 to €2,800 a year. Hence the value of taking it out young.

Most contracts provide a benefit proportional to the degree of incapacity recognised by the insurer's medical adviser. Incapacity recognised at 50% gives 50% of the insured benefit. Good contracts start paying from 25% incapacity; less favourable ones only pay from 67%. This is a key point to watch when comparing contracts.

It depends on the contract. The best contracts cover mental health conditions (depression, burnout) in the same way as physical conditions, sometimes with a sub-limit or a maximum benefit period (24 months, for example). Older or entry-level contracts often exclude mental health conditions. Always read the exclusions section of the general terms and conditions.

Yes, that is in fact how it normally works. The income protection benefit is paid on top of the NIHDI benefit, with no reduction as long as the total stays below 75–80% of gross income in line with the insurer's terms. Above that, some contracts apply a non-cumulation clause (reduction of the benefit). Check this point in the contract.