Disability insurance AOV is a crucial financial safety net for freelancers. It provides a monthly income if you become unable to work due to illness or an accident.
What is Disability insurance AOV?
AOV stands for 'Arbeidsongeschiktheidsverzekering' in Dutch, meaning occupational disability insurance. It's a policy that pays you a monthly benefit if you become partially or fully disabled and cannot perform your professional work. This replaces a portion of your lost income.
Why is this important?
As a freelancer, you have no employer to provide sick pay. If an injury or long-term illness stops you from working, your income stops immediately. AOV insurance is your primary defense against this financial risk, helping you cover living expenses and business costs during recovery.
How does it work?
You pay a monthly premium to an insurer. If a doctor confirms you meet the disability definition in your policy, the insurer pays you a benefit. This is typically a percentage of your former income, like 70-80%, and continues for a set period or until retirement age.
Pros and cons
The main advantage is crucial income security, giving you peace of mind. Key considerations include the cost of premiums, potential waiting periods before benefits start, and strict policy definitions of 'disability' that you must understand before signing.
Conclusion
For freelancers, Disability insurance AOV is not a luxury but a fundamental part of a responsible business plan. It protects your most valuable asset: your ability to earn an income. Evaluating and securing appropriate coverage should be a top financial priority.
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