Group insurance in the event of death
At retirement, a worker who has a group insurance through his or her employer can rely on a supplementary pension capital. But what happens if the worker dies before his or her group insurance expires?
When a worker dies before the expiry of group insurance, the accumulated savings are paid (as provided for in the contract) to the beneficiaries designated in the group insurance policy. It is also possible to include additional death coverage in the policy, which provides supplementary capital in the event of premature death.
The rules in the event of death in the framework of group insurance for employees are as follows: deduction of an INAMI contribution of 3.55% from the insured death benefit + profit sharing, as well as a solidarity contribution (between 0 and 2%), unless the beneficiary is not the spouse of the insured person. The insured death benefit is also subject to a 16.5% tax (if this coverage has been financed by the employer). Profit-sharing, on the other hand, is exempt from this tax, provided it is paid with the capital. The rate is 10%, if the death benefit is paid in the event of death after the deceased has reached the legal pension age, if he or she has actually worked until that age.
What about inheritance tax?
There is no such requirement if the beneficiary is a spouse or a child under 21 years of age.
Note that if the deceased worker had designated another beneficiary, then inheritance tax will be due. The rate in this case will depend in particular on the order of magnitude of the inheritance and the degree of kinship between the deceased worker and the beneficiary. Take into account that inheritance tax is a regional competence. In other words, rates vary from one region to another.
It is therefore important to check regularly whether the beneficiary clauses still correspond to current wishes. Just think of a scenario in which two people get married, get divorced, and then one of them remarries. If the beneficiary clauses have remained unchanged for years, chances are that they are no longer correct.
Do you have any questions about group insurance? Be sure to contact your insurance broker. Here you can read about the advantages that NN group insurance has to offer.
