If an employee were to die, the family of that employee would lose at least a portion of their income. To cater for this, it is possible to take out an insurance-based partner’s pension and orphan’s pension. If your employee were to die before retirement, their partner and children would then receive a benefit. The partner would receive a lifetime partner’s pension. Children would receive an orphan’s pension until they reached a defined age.
In the event of an employee’s death, the survivors might be entitled to a benefit under the General Survivor’s Act (Algemene nabestaandenwet, “ANW”). This is a safety net provided by the state. The eligibility criteria are strict, which means that not many people will qualify. This can be compensated by taking out an insurance-based supplementary survivor’s pension. This insurance cover provides a monthly benefit payment to the partner until they reach retirement age. The supplementary survivor’s pension can be taken out for all employees or only for those who wish to have it.
A partner’s pension and orphan’s pension can be taken out on an insurance basis in respect of the pensionable salary in excess of €100,000; this comes in the form of a lifelong guaranteed amount.