Collective survivors' insurance for self-employed entrepreneurs

Survivor's insurance provides a benefit to the partner/children upon the death of an employee or entrepreneur — in addition to the ANW (General Survivor's Act), which is no longer sufficient for many. The ANW often applies only to widows/widowers without income of their own or with young children — for most working partners: 0 or very limited. Survivor's insurance fills this ANW gap: e.g., €1,500/month for life or until the state pension. For self-employed entrepreneurs and staff without a strong pension scheme: essential. Below are coverage, target group, and how Tessa structures the scheme for her company.

The short answer

• What: payment to partner/children upon the death of an employee/entrepreneur.
• Supplement to: ANW (often insufficient), partner pension (variable).
• Form: monthly amount or one-time payment.
• Premium: dependent on contribution, age, health.
• For whom: self-employed entrepreneurs, employees without a strong pension scheme.

The ANW gap

ANW (General Survivors' Benefits Act) provides a benefit to the surviving partner:

• Born before 1950: often ANW.
• Young person with child under 18: ANW.
• Incapacitated for work (45%+) and born before 1950: ANW.
• Otherwise: no ANW.

Practical information: for most working partners under 60: no ANW. Employer-provided pension is often limited as well (partner pension 50-70% of employee pension).

Result: upon the death of an employee, the partner may end up without benefits — depending on their own work and assets.

Types of survivors' insurance

1. Periodic survivor's pension

Monthly amount to partner — e.g. €1,500/month for life or until state pension age. Strong financial security.

2. Lump-sum payment upon death

Fixed amount (e.g. €100,000-€500,000) as a one-off payment. Partner must manage it themselves — less certainty but flexible.

3. Temporary survivor's pension

Monthly amount for a limited period (e.g. until children turn 18 or partner reaches state pension age). Cheaper than the lifelong variant.

For self-employed entrepreneurs

Without employer pension: entrepreneurs dependent on their own provision. Entrepreneur coverage:

• Personal term life insurance.
• Annuity accumulation via a private limited company or bank.
• Specific entrepreneur survivors' policy.

The premium depends on the amount, age, and health (a medical examination is required above certain amounts).

Collective for staff

Employer takes out a collective policy for employees — often cheaper than individual ones. Part of employee compensation. Conditions:

• Acceptance without a medical examination (often).
• Standard coverage for all employees.
• Optional individual supplement.

In the employee's interest: often only ANW gap insurance — partner receives a supplement up to the amount that would have been the ANW.

Example Tessa

Tessa is considering survivorship insurance for 12 employees:

• ANW gap coverage: standard for all employees — upon death, partner receives the amount that the ANW should have provided.
• Premium: € 8/employee/month = € 96/month = € 1,150/year.
• Plus extra individual expansion for employees who want more (own premium).

For Tessa herself as an entrepreneur: her own survivor's policy via annuity accumulation + temporary term life insurance until retirement.

Tax aspect

• Premium payments are often deductible in a BV (business expenses).
• Payment to partner: taxable as wage-replacing income.
• For a one-time payment: often partially tax-free (specific rules).

In complex situations: involve a tax specialist — the difference between solutions can result in tens of thousands of euros in tax savings.

Honest recommendation

For self-employed entrepreneurs: survivorship provision is indispensable — no employer to fall back on. For SME employers: collective survivorship insurance strengthens employee protection and is cheaper than individual coverage. Start with ANW gap coverage as a minimum. For employees with young children or a working partner without their own income: broader coverage is recommended. Combine with other employee insurance policies for a complete package.

For other topics: employee protection, collective accidents and insurance for SMEs.

Frequently Asked Questions