Corporate Pensions: Risk Coverage

An important aspect of the corporate pension plan’s next of kin coverage is that if the employee participates directly, there is no medical testing allowed.

The standard corporate coverage is risk based. To give an indication about its general height: It amounts per employee to a lifelong gross next of kin pension annuity of:

• The amount of annual gross wages with a maximum of gross rounded € 107.500,- ;
• Minus the offset of rounded € 15.000,- ;
• Times 1,16%;
• Times the number of years as of starting date until age 68.

Likewise as the next of kin coverage but only until age 18 or 21 and 20% thereof.

In case the orphan studies, it is maximum until age 27. If both parents passed away, it is double the annual amount.

In general this regards a possible option to annually insure an additional gross € 15.500,- until pension age of the partner of the employee. Often at an attractive rate.

Often it is possible to increase the coverage by means of using the existing old age pension capital at the date of passing away to acquire additional next of kin pension terms. A very logical addition.

International companies often also have an optional Group Risk Coverage which pays-out after an accident and/or disability.