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Do I need a disability insurance? – The insurance to whom it should decide



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It is hard to imagine that you end up in a situation where you are so sick or injured that you can not work as much as before – in the worst case, no.

Well, the truth is that can to pass Nav's figures show that by December 2018 there were 339,200 beneficiaries of disability benefits, an increase of 4.1% in one year. This growth is superior to the one predicted previously and Nav therefore has prepared a new prediction of the expected development in the number of people with benefits by incapacity. They expect growth of disability also during 2019.

If you become incapacitated at least 50 percent for more than one year, you will normally receive a disability benefit from Nav, as well as the employer's invalidity pension. With permanent disability, however, you will find that your performance is greatly reduced, especially if you are used to earning a lot. It also varies the good that can offer the disability pension in the workplace.

Therefore, you may want to take some type of disability insurance and there are many insurance in this market, but what should you choose? And do you need disability insurance?

Check what you get from Nav and work

Before subscribing to your own disability insurance, you should check what you will receive in any case from the National Insurance, our "joint insurance company." The main rule is that you are entitled to a disability benefit by Nav you:

  • He is between 18 and 67 years old and is a member of the national insurance scheme for the last three years before becoming sick.
  • The main reason why your ability to enter is reduced must be the illness and / or injury. In addition, appropriate treatment and work measures must be applied.
  • Your income capacity must be permanently reduced by at least 50% due to illnesses and / or injuries.

However, there are some exceptions: if you receive a job evaluation allowance (AAP) at the time you request a disability benefit, it is sufficient that your income capacity is permanently reduced by at least 40 percent. If the disability is due to a professional injury or illness, it is sufficient that your ability to enter is permanently reduced by at least 30 percent.

Disability insurance is 66 percent of your average income for the best three of the last five years before becoming sick, but an annual income of more than six times the base amount in the national insurance scheme (6G), 581,298 NOK per May 2018. no with.

This means that you have earned about 600,000 NOK in three of the last five years, your benefit for incapacity by Nav will amount to around 390,000 NOK per year. If you have earned 500,000 in three of the last five years, the disability benefit amounts to 330,000 NOK per year.

In addition, you should consult with your employer if you are covered by a disability insurance through work and you must verify Norskpensjon.no, where it appears if you are insured with disabilities deprived of previous employment conditions through payment policies.

– If the disability benefit of the national insurance scheme and the employer is enough to handle it, you do not have to buy additional disability insurance, says Elisabeth Realfsen at Finansportalen to Dinside.no.

Some will notice the loss of income more than others

As you can see in the calculation of Nav's invalidity benefit, those who earn more than 6G will see the most drastic decrease in their permanent disability income, compared to those who have low incomes or means.

– The more revenue it has, the higher the drop in income with long-term illnesses. If you have a million income, as well as mortgages and an economy based on this income, you could be firmly funded if you have to deal with Nav's disability benefits over a long period, says Eva Sørmo, a consumer economist in the family economy of Norway, Dinside.no.

Disability or disability capital?

If you find out that you should have additional disability insurance more than you receive from your national insurance and workplace, you should check the different insurance policies offered by banks and insurance companies and how you pay if you end up with a long-term disability.

There are calls for disability pensioners, also called disability pensions and disability capital. Here's the difference:

  • Disability and pension Provides monthly payments if you incapacitate for more than 50 percent for at least 12 consecutive months. Payment is usually done according to the degree of disability, which means that you have become 75% disabled and you will get a payment of 10,000 NOK to 100% disability, you will receive 7,500 NOK. Some also offer unaccompanied minors in which 100 percent is paid only if work incapacity exceeds 50 percent, according to Smarte Penger.
  • capital of disability It can be paid as a single payment or as a combination of single payment and any advance payment. The standard for disability capital is that you pay your insurance if you make more than 50 percent unemployed. This disability must have lasted two years, possibly that it was evaluated of permanent way in a previous phase. The combination model provides a down payment if you have not been able to work for more than a year. This pre-payment is deducted from the fixed amount, if you are entitled to receive this amount later, according to Smarte Penger.

You must carefully read the mentor or capital insurance terms and conditions before signing the contract so that you know how your situation may be.

Who should choose what kind of disability insurance?

It is difficult to give a clear answer to this, since this must be considered individually based on the economy, age and situation of life.

– Economically speaking, however, it should be indifferent if you withdraw money as a sum or in monthly amounts, says Realfsen in the Finance Portal.

Sørmo in the Family Economy of Norway considers that the disability pension is the most important disability insurance, since it is a disbursement after twelve months of sick leave and covers lost income in the future. If you are new, a disability pension makes sure you lose your income for many years, up to the retirement pension, if you do not return to work.

Realfsen, on the other hand, has a unique button that allows you to pay mortgages and reduce the interest rate risk. A single payment can also give you a net worth to enter the real estate market.

– Sometimes you can handle a disability capital with a postponement after twelve months. If you declare yourself permanently disabled, you can use the single payment to return the remaining loan. Then you will not receive a permanent disability pension, but if you are debt-free, you can manage with less income available each month. The ideal will usually be both, summarizes Sørmo consumer economist.

I want to throw away early

You are new and you often have a greater need for disability insurance. If you bought a home and you have a lot of loans, you will be more vulnerable when you are only in the economy, according to Sørmo.

On the other hand, good adults with small loans can bear a greater loss of income without significantly affecting the daily economy.

– If you do not hire a disability insurance while you are healthy and are disabled for a period, you risk not signing a disability insurance or obtaining a sickness insurance reserve, Sørmo says.

If you are one of those who think Nav's disability pension and work are good, keep in mind that if you change jobs or want to hire a new insurance, you are also at risk of receiving reservations for the new insurance policies.

– After acquiring disability insurance, you must be aware that you want to change to another company and be ill in the meantime, you run the risk of receiving reservations or denials. So let's say nor Sørmo signs insurance before the new one is in place.

Insurance price

Disability insurance is an expensive insurance and if it becomes too expensive for you to cover insurance all The need, it would be better to have a lower coverage than to have no insurance, according to the consumer economist in the Norwegian family economy.

It is important that you check the terms and conditions before hiring a disability insurance and request offers from several providers. Price differences can be significant.

– If you currently have disability insurance and believe that it is expensive, you can contact the company and listen to the correct price. There can be room for negotiations, says Sørmo.

The disability insurance will be more expensive over the years. If you are in a situation where you do not have the same need for greater insurance coverage, it can be an alternative to save more for the pension, but this is again very individual and must adapt to the individual's finances and life situation, concludes .

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