Income Care (guaranteed income cover)

How does it work?

1. You agree a Group Insurance contract.
2. You, as employer, choose which risks you want to cover:
   • Illness (including maternity leave);
   • Workplace accidents;
   • Non-workplace accidents (generally covered at any time).
3. The premium you pay is less than 1% of the total payroll. The level of the premium depends on:
   • The formula chosen to calculate the replacement income;
   • The insured risks;
   • The waiting time;
   • Age at the end of the payments;
   • Rate at which the payments are indexed;
   • …
4. Employees with work incapacity of 25% or more qualify for the replacement income.

Advantages

Employer

• The premium is a deductible professional expense, provided that the legal and supplementary benefits do not exceed the employee’s normal annual gross pay (100% rule).
• The premium is limited to less than 1% of the total payroll, which means it will not put a strain on your budget.
• Income Care enhances your pay package (motivational HR policy), boosting your staff retention and helping persuade new candidates to join your business.

Employee

• Your employees are not taxed in any way for the benefit offered by the cover. If the cover is activated, however, the income they receive will be counted towards their taxable income.
• Burn-out and depression are frequent contributory factors to work incapacity. One-third of these cases arise from psychological problems. Income Care offers a psychosocial counselling service (Rehalto).

Good to know

• The replacement income may not exceed 80% of the normal income.
• If an employee leaves your company, you can help them maintain their guaranteed income cover on an individual basis, although the premium they will pay will be higher than that of their contract. You are required by law to inform them of this.
• If the employee also benefits from Group Insurance (link), the premiums for that plan (and for Death Cover, if applicable) will cease to be paid during the period of work incapacity. This means the employee’s pension capital will be lower. This can be avoided if Premium Insurance (offered through the Group Insurance) is chosen.
• Which risks are not covered?
  • Payments are not made in the event of work incapacity due to alcoholism, deliberate acts, attempted suicide, or other acts committed when the person is under the influence of narcotics, hallucinogens or other drugs. For a complete overview of the exclusions, please consult the General Terms & Conditions via http://www.agemployeebenefits.be.
  • The guarantee is not provided if the economic incapacity is the result of a pre-existing condition. The guarantee does apply, however, in the event of worsening economic incapacity due to a pre-existing condition, unless the member suffers economic or physical incapacity relating to this pre-existing condition in the course of the first year after joining the plan.
• A contract is concluded for a period of one year, tacitly renewable at the end of every year. The precise scope of the guarantees is set out in the contract conditions. These general terms and conditions, together with a premium calculation and an offer contract are available free of charge via http://www.agemployeebenefits.be.
• The insurance contracts are subject to Belgian law.
  In the event of a complaint, please contact the AG Insurance Complaints Department (fax 32 (0)2 664 02 20, e-mail: customercomplaints@aginsurance.be).
  If the proposed solution is not to your satisfaction, your complaint may be submitted to the Insurance Ombudsman (35 Square de Meeûs, 1000 Brussels, tel. +32 (0)2 547 58 71 – fax 2 547 59 75 – www.ombudsman.as).
• For further information or for a quotation including a premium calculation, please contact:

Useful link(s)

AG Employee Benefits website

AG Insurance sa/nv – 53 boulevard Emile Jacqmain, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0404.494.849 – www.aginsurance.be. Accredited insurance company licenced under code number 0079, under the supervision of the National Bank of Belgium, 14 boulevard de Berlaimont, 1000 Brussels.

BNP Paribas Fortis sa/nv, 3 Montagne du Parc, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0403.199.702, registered with the FSMA under n° 25.879A and acting as a contractually appointed insurance agent on behalf of AG Insurance sa/nv.