Net coverage

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 with LifeSight and your partner is known to LifeSight. 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 with LifeSight. You do not need to register your children with LifeSight.

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 – MijnLifeSight.nl – 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.

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 – MijnLifeSight.nl – 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.

Which options are available to you and which conditions apply depend on the agreements your employer has made with us about this. You can find these agreements in the net pension regulations.

Why net coverages?

The net cover consists of a net partner’s pension and a net orphan’s pension. Below we show the advantages and disadvantages.

Net Partner’s pension

Pros

• Your partner’s income is supplemented after your decease during your employment.
• Your partner does not pay tax on the benefit (supplement).
• 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

• You pay the premium yourself, so you have less room for other expenses.
• The insurance ends when you leave your employment.
• If you cancel the insurance, you cannot start it again later.
• If you cancel the insurance, the insurance for the net orphan’s pension will also stop.

Net Orphan’s Pension

Pros

• 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.
• No tax has to be paid on the benefit.
• You can cancel the insurance at any time. Only then you cannot start the insurance again later.

Cons

• You pay the premium yourself, so you have less room for other expenses.
• The insurance ends when you leave your employment.
• If you cancel the insurance, you cannot start it again later.
• 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.

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.

Below you can see in which situations net covers are or are not suitable for you.

Net Partner’s pension

Net Orphan’s Pension

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 LifeSight 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 with LifeSight and your partner is known to LifeSight. 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 – MijnLifeSight.nl – 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 with LifeSight. You do not need to register your children with LifeSight.

When do the net covers automatically stop?

The net partner’s and orphan’s pension automatically stop if:

1. Your salary falls below the limit of € 128,810 (2023); or
2. We receive a message that you have left your employer’s employment; or
3. You retire from LifeSight.

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 – MijnLifeSight.nl – 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 – MijnLifeSight.nl – 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.