What are net covers?
Net cover is insurance that, in the event of your death before your retirement date, provides a benefit to your partner and children. This concerns insurance for employees with a salary above the limit set by the government of € 128,810 (2023).
You may accrue tax-free pension up to this limit for your salary. A pension scheme in which pension is accrued on the salary above this limit is referred to as a net pension scheme. The name is derived from the fact that the pension contribution may not be paid from the gross income, but must be paid from the net income – that is income after deduction of taxes. Within a net pension scheme you can also insure the risk of decease before your retirement date. These are the net covers.
Please note:
The net partner’s pension is insured for you as standard if your employer has a net pension scheme based on the Zwitserleven Pensioen and your partner is known to Zwitserleven. Register your partner* if we don’t know them.
The net orphan’s pension is insured for you as standard if your employer has a net pension scheme based on the Zwitserleven Pensioen with Zwitserleven. You do not need to register your children with Life.
In the section: How do you arrange a net cover? we explain what to do.
Net Partner’s pension
This insurance provides a supplement to your partner’s income if you die before your retirement date. Your partner will receive this supplement until his/her death. The premium for this insurance is deducted monthly from your net salary by your employer. You therefore pay this premium yourself. On your participant portal you can find the amount of the premium under Premiums and costs. The premium changes every year because your age changes. The premium also changes if the insured amount changes.
Your partner will then receive the following benefits:
- Partner's pension
- Net partner's pension
Before state pension age partner
- Partner's pension
- Net partner's pension
- State pension (AOW)
After state pension age partner
Net Orphan’s Pension
This insurance provides a benefit for your child(ren) if you die before your retirement date. The orphan’s pension ends on your child’s 18th or 21st birthday. This depends on what your employer has agreed with us. If your child is studying or is incapacitated for work, the benefit will continue for a longer period, at the latest until your child’s 27th birthday. The premium for this insurance is deducted monthly from your net salary by your employer. You therefore pay this premium yourself. On your participant portal you can find the amount of the premium and costs under Premiums. The premium changes every year because your age changes. The premium also changes if the insured amount changes.
- Orphan's pension
- Net orphan's pension
Before final age
- Orphan's pension
- Net orphan's pension
After final age
Who are net covers intended for?
Net cover is intended for employees with a partner and/or children and with a salary above the limit of € 128,810 (2023).
The net partner’s pension is a useful addition to your partner’s income if you die before your retirement date. If you do not wish to insure a net partner’s pension, you must deregister. See the section “How do you stop net coverage yourself?” later on this page.
The net orphan’s pension is a useful insurance for your children if you die before your retirement date. If you do not want to insure a net orphan’s pension, you must deregister. See the section “How do you stop net coverage yourself?” later on this page.
When are net covers suitable?
There are advantages and disadvantages to net covers. Whether it suits you depends on what you find important. And your financial situation, now and in the future.
Net Partner's pension
Pros
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Your partner’s income is supplemented after your decease during your employment.
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Your partner does not pay tax on the benefit (supplement).
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You can cancel the insurance at any time. Only then you cannot start the insurance again later. And the insurance for the net orphan’s pension will also stop.
Cons
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You pay the premium yourself, so you have less room for other expenses.
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The insurance ends when you leave your employment.
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If you cancel the insurance, you cannot start it again later.
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If you cancel the insurance, the insurance for the net orphan’s pension will also stop.
Suitable
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If your partner or your family is (partly) dependent on your income.
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If you do not have enough other death insurance policies. If you have no or insufficient
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other financial resources such as savings
Not suitable
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If your partner has enough income of his own.
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If you have enough other death insurance policies.
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If you have sufficient other financial resources such as savings.
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If you prefer insurance that is separate from your employer.
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If you reach state pension age within 6 months at the start of the insurance. You then have to deal with exclusions from the insurance. Then there is a chance that we cannot make a payment in the event of your decease before your retirement date.
Net Orphan's pension
Pros
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Your children will receive a benefit if you die before your retirement date. This concerns young(er) children, children who are studying or children who are incapacitated for work.
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No tax has to be paid on the benefit.
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You can cancel the insurance at any time. Only then you cannot start the insurance again later.
Cons
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You pay the premium yourself, so you have less room for other expenses.
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The insurance ends when you leave your employment.
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If you cancel the insurance, you cannot start it again later.
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If you have a child under the age of 18, you can only cancel the insurance if you also cancel the insurance for the net partner’s pension.
Suitable
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If you still have young(er) children. Or children who study or are incapacitated for work. And your children are (partly) dependent on your income.
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If you do not have enough other death insurance policies.
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If you have no or insufficient other financial resources such as savings.
Not suitable
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If you don’t have children.
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If your children are no longer eligible for benefits, because of their age or because they are not studying or are not incapacitated for work.
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If your children are not dependent on your income.
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If you have enough other death insurance policies.
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If you have sufficient other financial resources such as savings.
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If you prefer insurance that is separate from your employer.
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If you reach the state pension age within 6 months at the start of the insurance. You then have to deal with exclusions from the insurance. Then there is a chance that we cannot make a payment in the event of your decease before your retirement date.
What alternatives are there?
You can also provide sufficient income for your partner and/or children after your death in other ways. For example by:
- Save money in a savings account at a bank.
- Investing money in a bank or insurance company.
- Take out an annuity with a bank or insurer.
- Take out death insurance with an insurer, separate from your employer.
These alternatives are independent of your employer. You can choose from several products and providers. You also have more freedom in your choice of how the money is paid out. Be aware that in some cases you have a tax advantage and in others you do not. It is also important to pay attention to the fees charged by the provider. The fees for this type of product are often higher than the fees Zwitserleven charges for insuring net partner’s pension and net orphan’s pension.
How do you arrange net cover?
Net partner’s pension
The net partner’s pension is insured for you as standard if your employer has a net pension scheme based on the Zwitserleven Pensioen and your partner is known to Zwitserleven. We are informed by the Personal Records Database (BRP, formerly GBA) if you are married or if you have a registered partnership.
If you live together or are married abroad, register your partner via your participant portal via the My changes section. After registration of your partner, a net partner’s pension is insured as standard.
Net orphan’s pension
The net orphan’s pension is insured for you as standard if your employer has a net pension scheme based on the Zwitserleven Pensioen. You do not need to register your children with Zwitserleven.
When do the net covers automatically stop?
The net partner’s and orphan’s pension automatically stop if:
- Your salary falls below the limit of € 128,810 (2023); or
- We receive a message that you have left your employer’s employment; or
- You retire from Zwitserleven.
The net partner’s pension also stops automatically if we receive a message that you no longer have a partner.
In these situations, we will discontinue the net cover because there is no longer any entitlement to a benefit. Naturally, you no longer have to pay a premium.
How do you stop net coverage yourself?
Net partner’s pension
You can cancel the insurance at any time. On your participant portal you can choose to deregister the net partner’s pension in the My changes section.
Please note:
- You cannot start a net partner’s pension again after it has been stopped.
- If you stop the net partner’s pension, the net orphan’s pension will also stop.
Net orphan’s pension
You can cancel the insurance at any time. On your participant portal you can choose to deregister net orphan’s pension in the My changes section.
Please note:
- You cannot start a net orphan’s pension again after it has been stopped.
- If you have a child under the age of 18, you can only cancel the insurance if you also cancel the insurance for the net partner’s pension.
*Your partner is the person whom you:
- are married to; or
- have a registered partnership with; or
- have a long-term joint household (cohabiting).
You may have a maximum of one Partner.
A long-term joint household (cohabiting) qualifies as such if the following conditions are fulfilled: you and your partner are both not married and are not in a registered partnership with any third persons; and your partner is not related to you in the first degree; and you and your partner are registered at the same address for at least six months in the BRP (Municipal Personal Records Database). Or you and your partner can provide a notarised domestic partnership agreement.
Need advice?
We are pleased to assist you with your retirement choices. Those choices can have major financial implications. Our guidance is only about your Zwitserleven Pensioen. Whether a choice is right for you naturally depends on your entire personal situation. Now and in the future. Have you thought about asking an advisor? They can give you an overview of all your financial affairs. And help you make the most appropriate choices.