What if you fall ill tomorrow and cannot work for a few months? For self-employed people, there is then no great government safety net. For this reason, some self-employed people opt for disability insurance (AOV). But is such a thing compulsory? What does it cost, and are there cheaper options?
In this article, we explain it all to you, including the changes around compulsory AOV in the Netherlands.
What is disability insurance?
Such a disability insurance (AOV) ensures that you receive benefits when you are unable to work (temporarily or longer) due to illness or an accident.
When you are employed, it is automatically arranged through your employer. But as a self-employed person, you have to make your own arrangements. With an AOV you protect your income and get financial security for when you cannot work for a while. You determine the insured amount, the waiting period and how long your benefits last.
Is disability insurance mandatory?
No, an AOV will not be compulsory for self-employed people in 2025. So you can choose whether you want to insure yourself against possible disability.
Still, it is useful to think about this carefully. After all, imagine you drop out for a year. Will you then have enough savings to cover everything? Or might you have to fall back on your partner, family or go into debt?
While none of it is mandatory, there are government plans to change this. More on that later.
Benefits of an AOV
Disability insurance may not be cheap, but it offers a lot of security and peace of mind in the long run. The key benefits at a glance:
- You have income when you fall ill for a long time or suffer an accident.
- It helps you avoid financial problems during an extended period of illness.
- You choose how you want to insure yourself: for a low amount or more extensive.
- It gives you peace of mind to know that you are well insured.
- Much of the premium is tax-deductible (more on this below).
What does disability insurance for self-employed people cost?
The premium of an AOV depends on a few things: your age, the work you do, your health and how much you want to insure. Your waiting period (e.g. 1 or 3 months) and how long you want the benefit to continue (until age 60 or 67) also play into the cost.
On average, an AOV costs between €150 and €300 per month. For high-risk professions, such as those in construction or healthcare, this can be a bit higher. But don't panic. There are also cheaper options with limited cover, such as only for long-term disability.
Is an AOV premium deductible?
Yes, the AOV premium is tax deductible. And that means paying less tax on your earnings. You reduce your taxable income and therefore your net expenses become a lot lighter. Sounds like a nice win-situation.
Alternatives to an AOV (such as bread funds and donation circles)
Fortunately, if an AOV is too expensive or doesn't quite suit you, there are other ways to cover yourself against illness or disability. Here are some great alternatives:
- Brood fund: Save a pot with other entrepreneurs. Does someone fall ill? Then that person temporarily gets a monthly donation from the group. Very social.
- Donation circle: This is also a kind of bread fund, but through a foundation or online platform. It's less personal, but nice and low-threshold.
- Money box/buffer: Some entrepreneurs simply set aside money themselves, for instance for 6 to 12 months of fixed expenses. The only downside to this is: when it runs out, it runs out.
While these options may be cheaper, they often offer less coverage and are temporary (max 2 years).
Mandatory AOV is coming, probably from 2027
The government has plans to introduce compulsory disability insurance for all self-employed workers. This could be in place as early as 2027. The idea is for all self-employed people to be insured through the UWV with basic cover. The premium is then estimated to be around €200 a month, with a 1-year waiting period and benefits at assistance level. But don't worry, if you want more coverage or flexibility, you can probably opt for a private AOV as well.
The plan is not yet official, but chances are it will be there. So keep an eye on this especially.
Conclusion
An AOV is not yet compulsory, but it is something to think carefully about. Because what if you fall ill for a long time? Of course, you don't want to get into financial trouble.
Whether you opt for an AOV, a mutual fund or your own buffer: make sure you know what suits you. And with compulsory insurance coming up, it is smart to look ahead already. That way you are well prepared for what is to come.
