The specificities of protection contracts for independent workers

Independent workers, whether artisans, tradespeople, liberal professions or entrepreneurs, do not benefit from the same social protections as employees. To overcome these gaps, protection contracts offer essential coverage in case of illness, accident, disability, or death. This article explores the specificities of these contracts for independent workers and the essential guarantees to subscribe to.

Why is protection crucial for independent workers?

Independent workers are exposed to professional risks that can have serious consequences on their activity and financial situation. Unlike employees, they do not benefit from unemployment insurance or the protections offered by Social Security for sick leave. Subscribing to a protection contract helps secure their income in case of incapacity to work and protect their family in case of death.

Essential guarantees of protection contracts for independents

Protection contracts for independent workers offer several guarantees tailored to their needs:

• Income protection guarantee: In case of sick leave due to illness or accident, this guarantee compensates for the loss of income by paying daily allowances. The allowances complement the benefits of the independent social security system (RSI or SSI).
• Disability guarantee: If the independent worker becomes disabled due to an accident or illness, this guarantee provides for the payment of a disability pension. This pension helps maintain a decent standard of living despite partial or total loss of work capacity.
• Death guarantee: In case of the independent worker's death, this guarantee provides for the payment of a capital sum or a pension to the beneficiaries (spouse, children, etc.). This death benefit can be used to cover funeral expenses or compensate for the loss of income for the family.
• Dependency guarantee: This guarantee provides for the payment of a pension in case of loss of autonomy, to finance expenses related to dependency, such as accommodation in a retirement home or home assistance.
• Professional expenses guarantee: In case of prolonged sick leave, this guarantee covers the fixed costs of the business (rent, salaries, social charges) to keep the company afloat.

Specificities of protection contracts for independents

Protection contracts for independents have several specificities that are important to know:

• Flexibility: Protection contracts for independents often offer great flexibility in terms of guarantees, allowing to adjust the level of coverage according to the insured's needs and income.
• Advantageous tax treatment: Contributions paid under Madelin protection contracts, specific to independents, are deductible from taxable income, reducing the tax base while benefiting from enhanced social protection.
• Choice of guarantees: Independent workers can choose specific guarantees according to their professional activity. For example, a self-employed doctor can take out an income protection guarantee tailored to his profession, while a craftsman can opt for a professional expenses guarantee covering the costs of his workshop in case of sick leave.
• Duration of benefits: The duration of benefits can vary depending on the contract taken out. Some guarantees provide for daily allowances or pensions paid until resumption of activity, while others offer lifetime benefits in case of disability or dependency.

Real-life examples

Let's assume that an independent architect takes out a protection contract with an income protection guarantee and a professional expenses guarantee. In case of an accident rendering him temporarily unable to work, he will receive daily allowances to compensate for the loss of income, while his professional expenses guarantee will cover the rent of his office and the salaries of his employees. This protection will allow him to maintain his business and focus on his rehabilitation without fearing for the future of his company.

Legal framework for protection contracts for independents

Protection contracts for independents are governed by the Insurance Code, the Mutual Insurance Code, and the General Tax Code. The tax provisions relating to Madelin contracts are particularly advantageous for independents, allowing them to deduct contributions from their taxable income under certain conditions. It is essential to understand these texts to maximize tax benefits and benefit from adequate social protection.

Conclusion

Independent workers must pay particular attention to their social protection by taking out protection contracts adapted to their needs. The guarantees offered, the flexibility of the contracts, and the tax benefits provided by the Madelin scheme make them essential tools to secure their income and protect their family. Before taking out a protection contract, it is advisable to compare offers and consult an advisor to choose the most suitable coverage for your situation.