How are you protected by social security?
Social protection is the set of measures put in place by the State to protect you if you encounter health problems that prevent you from working and earning an income.
What coverage is available in the event of work stoppage?
As a self-employed coworker, you are entitled to daily benefits from the French Social Security system.
The amount of these allowances is calculated as follows: it corresponds to 1/730th of average income over the last 3 years, with a ceiling of €60 per day. Please note that dividends are not included in the average income calculation.
There is a 3-day deductible period, which means that you will receive benefits from the 4th day of sick leave.
To be eligible, you must meet the following conditions:
- You must have been affiliated to a compulsory Social Security scheme for at least 1 year. If you have been affiliated for less than a year, you may still be entitled to compensation for time off work, thanks to the maintenance of rights from your previous activity. Consult this article for more information.
- Have a work stoppage prescribed by your doctor
Social Security benefits are often insufficient to maintain your standard of living in the event of incapacity for work.
How are you protected in the event of disability?
As a self-employed coworker, your disability coverage is limited. For non-work-related health problems, the pension depends on your level of disability (3 levels) and cannot exceed €1,833 per month. For more information, consult this link.
However, for work-related health concerns, the self-employed scheme does not automatically cover accidents at work (including commuting) or occupational illnesses. To obtain this protection, contact your health insurance company and request a voluntary insurance occupational accident/illness insurance.
How will my family be protected in the event of my death?
If you were to die, your family would receive a lump sum of €8,798 in 2023, plus an additional €2,200 for each child under age 16.
How does provident insurance protect you?
As mentioned above, as a self-employed coworker, standard social protection doesn't cover you sufficiently in the event of a problem. Management employees benefit from compulsory provident insurance through their company, offering them better protection in the event of work stoppage, disability or death.
As a self-employed person, you need to take out individual private pension insurance. Here's how it works:
Disability coverage
This insurance supplements Social Security benefits, so that you retain 100% of your income in the event of sick leave. When choosing this coverage, please note the following points:
- Waiting period: period during which you are not covered even though you have already taken out insurance (particularly for illnesses).
- Deductible period: waiting period between the time you stop work and the start of benefit payments.
- Exclusions: certain illnesses, such as burn-out and back disorders, are often subject to specific conditions.
Disability coverage
Disability cover insures self-employed coworkers in the event of permanent disability due to illness or accident, whether in the course of their professional or private life.
This benefit pays an annuity, the amount of which depends on the contract and the degree of disability. The annuity is paid until retirement or recovery.
Please note the following points:
- At what level of disability are you covered? (20% ? 33% ? 66%)
- What scale is used to calculate disability? If your job is physical, choose a professional scale that calculates disability based on your ability to continue working.
Death benefit
In the event of premature death, provident insurance provides for the payment of a lump sum to the beneficiaries you have designated in the contract (spouse, children, etc.), to protect them financially.
Be sure to check policy exclusions, especially if you practice a sport like kitesurfing, which is often excluded.
How much does it cost to take out an insurance policy for a self-employed coworker?
It's difficult to give a precise figure, as several factors come into play, such as the level of cover, your age and your state of health. However, if you are around 30 years old, you can estimate a monthly cost of around €80.
The good news is that you can deduct contributions from your expenses:
- By using the Madelin scheme if you are self-employed.
- If you are a salaried employee (provided you receive a salary), you can treat them as a standard cost.
How do I choose a provident insurance policy?
To find a pension plan tailored to your needs, we recommend that you consult a specialized broker, such as Gus Assurance.
Using a broker offers several advantages:
- Time-saving: the broker does the research and compares the offers for you, saving you time.
- Personalized support: the broker takes into account your specific situation and needs, and guides you towards the most appropriate insurance for you and your family. He'll also support you in the event of a claim.
- Quality expertise: the broker understands the technical aspects of insurance contracts and can advise you on the key points to consider. Expertise is crucial, as it is in the field of credit brokerage.
- Financial savings: the broker can also help you find the best-value contract.
To sum up, as a freelance coworker, you need to take out insurance cover at a considerable cost, but it's crucial not to neglect this aspect, as it could put you in difficulty if something goes wrong.
This article is the first in a series aimed at you, the self-employed. Don't hesitate to consult our other articles for advice on how to choose the right mutual insurance for the self-employed, and on overheads insurance, which covers your company's fixed expenses, such as rent, in the event of incapacity for work.
