Should I purchase WGA gap insurance or not?
As an employer, you are required to continue paying wages for the first two years when your employee becomes disabled. After these two years, your employee will receive a WGA wage-related benefit. Subsequently, this benefit 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 his total income falls below 70% of the annual insured wage. To protect your employee against this, you can take out WGA gap insurance. Do you have doubts about whether or not to take out WGA gap insurance? In this article on Alpina.nl we tell you more about (the advantages of) taking out a WGA gap insurance.
Is WGA gap insurance mandatory?
No, WHA gap insurance is 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. Although a WGA gap insurance is not required by law, some collective bargaining agreements stipulate that such an insurance must be taken out. A WGA gap insurance gives your employees extra financial security.
Why do take out WGA gap insurance?
If WGA gap insurance is not mandatory, why would you take out one anyway? First of all, with WGA gap insurance you reduce the chance of financial problems for your employee. 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. WGA gap insurance is also an attractive fringe benefit. It is widely seen as a sign of good employment practice.
What are the benefits of WGA gap insurance?
WGA gap insurance has several benefits:
- WGA gap insurance supplements the WGA gap until state pension age
- The insurer provides assistance in reintegrating the employee
- WGA gap insurance is a good fringe benefit for your employees
- Insurance contributes to the financial well-being of your employees
- WGA gap insurance premium is tax deductible
- The benefit is value based
Do take out WGA gap insurance? Request a quote directly on Alpina.nl!
At Alpina.nl , you can request a no-obligation quote for WGA gap insurance. In order to give you an accurate quote, we need some information about your organization and employees.
Do you have any questions about the quote or about taking out WGA gap insurance? Then please do not hesitate to contact us! Alpina can be reached by phone Monday through Friday from 8 a.m. to 6 p.m. at 088 - 688 3712. You can also send us a message via chat, WhatsApp or Messenger.
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