When you bill as a light entrepreneur through Ninjou, you are automatically insured with liability insurance and accident insurance. Read more about these insurances on this blog.
Familiar to entrepreneurs and light entrepreneurs working as freelancers, YEL, ie the entrepreneur's pension insurance, is a compulsory insurance that an entrepreneur must take out if the light entrepreneurs taxable income exceeds at least € 8,261.71 per year (in 2022) and the light entrepreneurship lasts at least 4 months a year. The minimum level of YEL will cost about 130 euros per month for a new light entrepreneur or around 170 euros per month to a light entrepreneur who has had the YEL valid over 4 years already. Ninjou has a payment service for YEL, which makes it easier to pay for insurance.
There are many aspects to YEL insurance that many light entrepreneurs may not think about. Below we list the most important things about YEL (entrepreneur) insurance.
Many light entrepreneurs pay too little for YEL
The amount of your YEL insurance not only directly affects the pension you receive, but also the additional security you receive in the event of an illness or incapacity for work. The size of the YEL affects, for example, the amount of sickness benefit. When calculating the amount of your YEL insurance, you should include the YEL fee in the pricing of your services. Insurance coverage must be taken into account on top of the billable sum you charge from your customer as a light entrepreneur.
YEL saves the livelihood of a freelance light entrepreneur
Accidents can surprise anyone, and sometimes an accident can even take your ability to work. However, with YEL insurance for example get retraining to a another profession after disabling accidents. The compensation is paid according to your the level of YEL insurance. YEL therefore offers long-term security to a light entrepreneur. The level of earnings compensation is determined by the level of YEL insurance, and by belonging to the Entrepreneurs' Fund, you can receive earnings-related security after 15 months of being a member of the fund. A good guideline is that you should pay YEL about 24.1% of your taxable income so that the payment guarantees an adequate level of social security. The level of the widow's pension is also determined for the spouse according to the YEL insurance. Through Ninjou, YEL insurance is handled by the insurance company Elo. Read an article about Ninjou’s free insurance coverage for light entrepreneurs on this blog.
Get extra security with voluntary insurance
- Inexpensive and comprehensive insurance against incapacity for work as a light entrepreneur
- These insurances provide security for periods of 12 to 24 months if you fall ill or have an accident.
- For example, for a period of about 12 months, you can receive a daily allowance of around € 50-60 for 12 months for an accident and a lump sum of € 40,000 for permanent disability. Ask for an offer from your own insurance company. Report that you work through the billing service without your own business ID.
- The daily allowance related to these insurances is paid in addition to Kela's sickness allowance.
- Be sure to ask for insurance: in case of illness and accident medical expenses and permanent incapacity for work. These are often separate insurances.
- Check the amount of the lump sum for permanent disability, as it will often cover your mortgage remaining after your accident.
- Deafults can be a barrier to obtaining additional, voluntary insurance. In this case a sufficient level of YEL pension is recommended.