Is WGA gap insurance mandatory?
As a business owner, you deal with many different types of insurance. Yet not all of them are mandatory. You choose which insurances you take out for your company. A good example is WGA gap insurance. A WGA gap insurance is also known as a WGA gap insurance or WGA supplement insurance. You can take out WGA gap insurance to minimize your employees' loss of income in the event of long-term disability. Taking out WGA gap insurance is not mandatory, but it does have a number of advantages. In this article on Alpina.nl we explain these advantages.
What does WGA gap insurance entail?
If one of your employees becomes disabled, as an employer you are obliged to continue paying wages for the first two years. After two years, the employee receives a WGA wage-related benefit. This benefit runs for a minimum of 3 months and a maximum of 24 months. It then turns into a WGA continuation benefit. This is where a WGA gap can occur. There is a WGA gap if the employee receives the WGA continuation benefit, and the total income thereby falls below 70% of his annual insured wage. To protect your employee against this, you can take out WGA gap insurance. A WGA gap insurance is an insurance that you can take out to protect your employees against loss of income if they become disabled for a long period of time.
WGA gap insurance not required, why take out anyway?
Taking out WGA gap insurance is therefore not mandatory. It is a voluntary insurance that you, as an employer, take out for your employees. You can offer WGA gap insurance collectively to your employees. Your employees then decide for themselves whether or not they want to participate in the insurance. With WGA gap insurance, your employee receives a supplement to the statutory WGA continuation benefit if there is a WGA gap. In that case, the insurer will supplement the employee's income up to 70% times the disability percentage times the former salary.
Even though it is not mandatory, there are plenty of reasons to take out WGA gap insurance. It is a supplement to the statutory WIA benefits. Such insurance gives your employees more financial security. Moreover, it is an attractive fringe benefit. It is widely seen as a sign of good employment practices. Although it is not required by law to take out WGA gap insurance, some collective bargaining agreements stipulate that such insurance must be taken out.
Take out WGA gap insurance directly through Alpina
Before you take out a WGA gap insurance, you obviously want to know what you will soon pay in premiums. At Alpina.nl you can therefore request a no-obligation quote. Based on a few details, we can offer you an accurate quote. Do you have any questions about requesting a quote or taking out WGA gap insurance? Then please contact us! Our insurance specialists will be happy to help you with all your questions.
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