Life insurance
Want to be sure that your partner will receive an allowance to supplement his/her income after your death? The NFU offers all umc employees the voluntary option to arrange a collective life insurance with Squarelife.
Sociale Verzekeringsbank
When someone dies, their partner can receive a legal benefit from the Sociale Verzekeringsbank [Social Insurance Bank, SVB] according to the National Survivor Benefits Act (Algemene nabestaandenwet, Anw). But the SVB only pays this benefit if a survivor is younger than the statutory retirement age. And the survivor must meet the following conditions on the day that his/her partner dies:
- He/she is caring for a child who is under 18 years old, or
- is at least 45% incapacitated for work.
Another important point to know: the Anw benefit amounts to at most 70% of the net minimum wage. And the income from work of the survivor is subtracted from this benefit.
Squarelife
The collective life insurance from Squarelife can provide a useful allowance to supplement the income of the surviving partner. This option was arranged for the NFU and is in many cases more beneficial than individual supplementary insurance.
Want to register?
- New employees can register for the insurance in the first three months of starting their job. After that deadline, participation in this agreement is no longer possible.
- You can arrange the life insurance via:
Survivor's pension
Another useful allowance to supplement your partner’s income is the survivor’s pension from the ABP. The amount of the accumulated survivor’s pension, which is paid out after your death, can be found at:
Are you wondering whether it is necessary to arrange supplementary life insurance? We give a few examples of family situations below. Look at the one that best fits your own situation. Hopefully, it will help you to decide whether or not to arrange the supplementary Squarelife life insurance, alongside the previously stated Anw and ABP benefits. We advise you to think carefully about your situation and the financial consequences of a sudden death.
Rob and Sandra have two children aged 12 and 15. Sandra works full-time as a medical specialist at an umc and is the breadwinner. Rob looks after the children and has a part-time job. If Sandra dies unexpectedly, Rob is eligible for a statutory Anw benefit from the Social Insurance Bank (SVB). He is also eligible for the ABP survivor's pension. However, the SVB benefit is (partially) reduced by Robs income. Moreover, the SVB benefit stops when the youngest child reaches the age of 18. At that point, Rob may have to work more to generate a higher income. Life insurance insurance offers a solution for this.
Maaike and Stijn have three young children. Maaike works part-time as a nurse at an umc. Stijn has a busy, full-time job at a bank. When Maaike dies, Stijn is entitled to a benefit from the SVB. However, his income is too high so he ends up receiving no benefit from the SVB. Of course, he does receive the survivor's pension from ABP. Stijn starts working less to take care of the children. He can (partially) absorb the drop in his income because Maaike has taken out life insurance.
Jaap and Anne have three young children. Anne does not work and takes care of the children. Jaap is a medical specialist at an umc. If Jaap dies, Anne is entitled to a benefit from the SVB and a survivor's pension from the ABP. However, this income is too low to continue living in the current home, so she will have to work part-time. This will also require the children to attend childcare which again costs money. The supplement to the total income is (partly) provided by the life insurance taken out by Jaap.
Piet and Mohammed both work at an umc. They have no children. Piet is breadwinner and Mohammed works part-time. They have recently bought a nice new house. Of course, a death of either of them may not cause a forced move. If Piet dies, Mohammed will not receive an Anw benefit from the SVB. After all, there are no children. He only receives the survivor's pension from ABP. This benefit, together with his part-time income, is not enough to continue to meet living expenses. Fortunately, life insurance offers a solution. If Mohammed dies unexpectedly, Piet can continue to live in the house. Mohammed does not have to take out the life insurance.
Tim and Anja have been happily married for many years. Their children are independent and no longer live at home. Anja works full-time at an umc. Tim works at a pension consultancy. Both have a good income and are now thinking about their approaching retirement. The loan for their home is mostly paid off. If either dies, the surviving partner is left well looked after. Anja sees no reason to take out life insurance.
Tobias works full-time at an umc. In the evenings, he is a hobby drummer. He has a good income. His wife Nelly is older than Tobias and is now retired. She receives a pension and state pension. If Tobias dies, Nelly can make ends meet on her AOW and pension. Life insurance is not necessary.
