Sick pay self-employed insurance

This article is mainly directed at Artisans, Commerçants and profession liberal people who moan all the time about having to pay their cotisations to RSI!! Well, I can’t please everyone all the time!

I found out the other week that some people did not know that they are entitled to some benefits from RSI if they are off sick even though they are self-employed!

Yes, it may come as a surprise to you but your cotisations are not for the French government but to pay for illness, accident, pension, unemployment, invalidity and even death!

So, let’s have a look at how much you are entitled to and why you might also need an extra insurance to complement it.

• What you are entitled to:

1. Death: OK, I start with the worse one. When you die, RSI will pay a lump sum to your spouse, your children or your rightful heir. The capital paid is 7 845 € if you were still working or 3138 € if you were retired.
2. Invalidity: If you are an invalid and cannot work anymore, the RSI gives you 50% of your average yearly revenue (declared to RSI). This will be given to you until you retire.
3. Partial Invalidity: If you have a partial invalidity (invalidity superior to 66%) that stops you from working, you get 30% of your average revenue.
4. Incapacity and sickness: In France, it is called “Indemnités Journalières” and it means that RSI gives you a revenue equal to 1/730 of your average yearly revenue of the last 3 years if you are off work due to health problems. Minimum 5.21€ per day and maximum 53.74 € per day. This is given to you from the 8^th day of being sick or injured or from the 4^th day if you are hospitalized. This is during a maximum period of 3 years in case of long sickness or 360 days stretched over a period of 3 years for any other cases. E.g.: You have earned an average of 8000€ in the last 3 years, you get 8000 x 1/730= 10.96€ per day

You can only be entitled to the above compensation if you have been working fully for the last 3 years and earning at least 3 806€ per year. So, if you have just started your business or earning less than 3 806€ per year, you get nothing! That should make you think twice about working on the black!

• Self-employed compensation insurance:

If you are self-employed and more importantly if your family is entirely relying on your revenues, you better look at an insurance to top up those benefits. And especially, if you are just starting as the benefits from the RSI are low or even non-existent!

With Allianz, we do an insurance where you decide the amount you want to be insured for in case of death, invalidity and sickness (or just one of those guaranties, or just two or all three).

To give you an idea, a basic cover for death for 50 000 € can be as little as 6.56 € per month, if you had a sickness cover of 25 € per day and an invalidity cover for a benefit pension of 10 000 € per year, the total is 36.02 euro per month (prices based on an Artisans aged around 35 years old). So, for less than 37€ per month, you can get peace of mind! Come on, what are you waiting for!

If you are not an auto-entrepreneur (SARL, societe individuelle, SA, EURL, etc), the cost of this insurance can be added to your charges (under law Madelin) so reduces your income tax!

Conclusion:

OK, I know, some of you will say “yet another insurance”! But some insurances are more important than others! And this one to my mind is vital if you have a family that depends on you financially or if you have just started working (not fully yet for 3 years-see section 1-d). So don’t put it off and get a quote! It’s free!

And remember to check out our web site www.bh-assurances.fr/en for all my previous articles (“practical information”) and register to receive our monthly Newsletter.  You can also follow us on Facebook: “Allianz Jacques Boulesteix et Romain Lesterpt”

And don’t hesitate to contact me for any other information or quote on subject such as Funeral cover, inheritance law, investments, car, house, professional and top up health insurance, etc…