TNS: Complementary health insurance, foresight, retirement (Madelin)

HEALTH 100%

The status of self-employed worker does not exempt you from having good mutual health insurance. There are health insurances adapted to this situation, which supplement the reimbursement of Social Security and offer an optimal level of health protection.

Gathered under 3 major socio-professional categories (craftsmen, traders and liberal professions), self-employed workers often have different social cover depending on the specificity of their compulsory scheme.

How to choose a TNS mutual?

The role of a TNS mutual is to take care of the co-payment, that is to say the amount remaining payable by the insured after reimbursement of health expenses by Social Security.

A mutual insurance company for self-employed workers will cover the main health posts up to the level of reimbursement determined when taking out a contract for each health guarantee.

When choosing a mutual health insurance, it is therefore essential to precisely define your real needs in terms of current medical costs (drugs, excess fees, etc.), dental costs (implants, orthodontics, etc.) or even hospital costs.

Higher repayment needs

The majority of TNS affiliates choose the lowest reimbursement levels.

However, self-employed workers have higher reimbursement needs overall than members of the general scheme, and this for all health posts.

Madelin Law: tax advantages and social protection of TNS

Professionals who come under a real tax regime (BIC or BNC) can benefit from the Madelin law. Created in 1994, it allows self-employed workers to deduct advanced contributions from their taxes. It also provides protection during a work stoppage that could lead to a loss of income and makes it possible to meet significant health care costs.

Mutual contracts eligible for the Madelin law are responsible TNS contracts:

They cover the needs of the self-employed according to their profession and can be extended to their whole family.

There are 2 types of contracts:

Individual contracts: they insure self-employed workers, as well as their beneficiaries.
Group contracts: intended for the majority managers of a company.

FORESIGHT

Madelin foresight contract

Madelin's foresight contracts are aimed at self-employed workers who wish to ensure income maintenance in the event of TNS work stoppage and disability, and to protect their families in the event of death. Indeed, unlike employees, self-employed workers are very often poorly protected, and their social protections vary a lot depending on their compulsory scheme.

The first thing to do before taking out a foresight insurance contract is to check with its mandatory plan in order to know the guarantees to which you could claim in the event of sick leave, disability or death. This will allow you, on the one hand, to assess your current level of social protection, and on the other hand, to determine the missing or insufficient guarantees you need.

Be careful when determining the level of coverage, as the subscription of a Madelin insurance contract cannot generate unjust enrichment, you can only insure yourself for more than your current income (compulsory and supplementary benefits combined).

In order to limit this risk (generally linked to not taking into account the benefits of the compulsory scheme), some insurers offer indemnity-type contracts which supplement the indemnities paid by the compulsory scheme up to the insured income.

The different types of Madelin foresight contracts

There are two main types of pricing.

Madelin provident policies depending on the insured's age, the cost of which changes each year or part of the 5-year period, depending on the insured's attained age. More competitive for a young person, the price of the contract can increase quickly and reserve surprises.
Fixed rate Madelin provident policies, the cost of which is determined in advance regardless of the age of the insured and does not increase each year. They provide stability in social protection costs and are generally more attractive in the long term

Work stoppage guarantee, temporary incapacity for work

Invalidity guarantee

Death guarantee

Education pension

Joint pension

SAVINGS

Retirement savings for the self-employed: details on PERIN

Since October 1, 2019, holders of a Madelin retirement contract can transfer the savings from their contract to an individual PER.

The Treasury has just clarified certain points around the deductibility and regularity of individual PER payments for self-employed workers

The Madelin contract is a retirement savings product that allows non-salaried workers (TNS) to save in order to build up additional income upon retirement. Since October 1, 2019, holders of a Madelin retirement contract can transfer the savings from their contract to a PERIN (retirement savings plan), the new retirement savings product provided for under the Pacte law. While the main characteristics of the individual PER are known, there were still a few points of uncertainty surrounding the maintenance of the Madelin tax system identical within the PERIN, as well as the resumption of constraints relating to the regularity and amount of payments. .
In a letter to the Technical Center for Provident Institutions (CTIP), the Treasury provided details on these various points.Deductibility of paymentsThe Treasury has confirmed that the principle of deductibility of Madelin payments will be repeated identically in the individual PER. TNS can therefore deduct from their taxable profit payments made on an individual PER up to 10% of annual income, within the limit of 8 PASS (annual social security ceiling), increased by 15% for the part of the income included. between 1 and 8 PASS. Note, for 2019, the PASS is 40,524 euros and could be set at 41,088 euros for 2020.
Regularity of paymentsThe Treasury also gave details on the characteristics of the payments. Indeed, the Madelin retirement contract imposes regular payments as well as a floor and a payment ceiling. These constraints were not taken up in the context of the individual PER.
PERIN more flexible than MadelinUnlike the Madelin, the PER will offer the possibility of unlocking savings for the purchase of the main residence.While the Madelin contract only provides for an exit into a life annuity, the individual PER will allow greater freedom of use of savings: at the time of retirement, withdrawals can be made freely in annuity or in capital, all at once or in parts.
What happens to my PERIN if I change my professional status?If you have to change status during your career, becoming an employee for example, you can continue to save for your retirement on your PERIN. This solution follows you whatever your professional status.

RETIREMENT

How to calculate the supplementary pension for self-employed workers?

Since July 1, 2013, artisans, traders and manufacturers have benefited from a single common supplementary pension scheme in points.

Since January 1, 2020, the supplementary pension for self-employed workers has been managed by Pension Insurance through the CARSATs.

During his career, a self-employed person acquires supplementary retirement points thanks to the supplementary social contributions for old age that he pays. These contributions are calculated on his income. Supplementary retirement points are converted into supplementary retirement pensions. This is in addition to the basic self-employed pension.

Thus, the calculation of the supplementary pension for the self-employed takes into account:

The number of points acquired by the insured
Of the point value
Of the pension rate

The formula is as follows:

Supplementary pension = Value of point X Number of points X Pension rate

Pension rate: full or reduced?

When the insured meets the conditions for the duration of insurance and / or age required, the pension rate is said to be "full". It is then 100%.
When the insured does not meet the conditions for the required duration of insurance and / or the age of the full rate, the rate of his pension is reduced. This is then referred to as a reduced rate. His pension is subject to a discount. Read: What is the discount?

The reduction is applied as follows:

1% per quarter missing for the first 12 quarters
1.25% from the 13th quarter

The point value

The value of the supplementary retirement point depends on the date on which the self-employed person started his activity (before / after 2013) and on the nature of his activity.

Thus the value of the point has evolved as follows:

Apply for a supplementary pension from the General Scheme

To receive their supplementary pension, a self-employed worker must make a request to the Pension Insurance (which pays the basic and supplementary pension for self-employed workers), 4 months before the date on which he wishes to retire.
For craftsmen, traders and manufacturers, a single pension request must be made for the basic schemes of aligned schemes and for the supplementary scheme for self-employed workers. The request is made to the last plan to which the insured is affiliated.

The single pension request can be made in writing, by telephone or directly to the insured's pension fund using the form "Personal pension request".

This document must be completed and returned to the insured's pension fund, along with the requested supporting documents.