The Hidden Optimization for Freelancers: Funding Your Kids' Braces Through Your Company
Recently, during a wealth management review, a client running a single-member company asked me:
"I currently pay €130 a month out of pocket for my private health insurance. If I switch to a company plan, the monthly premium goes up to €221. Is this actually a smart move?"
At first glance, paying €91 more each month seems counterproductive. But in financial management, stopping at the gross premium amount is a trap. Here is why this transition is actually a highly profitable strategy.
1. The Real Cost of Your Private Insurance
To have €130 net in your pocket every month, your company must generate significantly more gross income. Between corporate tax (ISOC), social security contributions, and personal income tax (IPP) or dividend withholding taxes, the true funding cost of this private expense ranges between €190 and €260 gross per month.
2. The Corporate Tax Leverage
By subscribing to a professional policy (such as the DKV Premium Business + Plan AZ combo), the €221 premium becomes a deductible expense for your company. Even when accounting for the taxable Benefit in Kind (ATN) on your personal taxes, the combined real cost remains manageable while providing vastly superior coverage.
3. The Real Win: Your Healthcare Expenses
The decisive factor in our calculation? This client’s children, aged 9 and 10, will soon need orthodontic treatments. Orthodontic care costs an average of €3,000 to €4,000 per year for two children.
With his old private contract, coverage caps were quickly reached. With his new corporate coverage:
Orthodontic treatments are reimbursed at 80% with zero waiting period (up to €2,500 per year, per child).
Day-hospitalization (One-Day clinic) in a private room is now covered at 100%.
He benefits from much higher annual caps for non-medical assistance.
The Bottom Line
By accepting a slightly higher gross premium paid by his company, this business owner injects over €2,000 net per year back into his family budget through orthodontic reimbursements. The extra premium cost is more than offset in the very first year.
💡 The takeaway: Never compare insurance policies based solely on premiums. Always analyze the overall tax impact and, crucially, your foreseeable medical expenses.
Are you a business owner looking to optimize your family's protection?
Book a meeting with the team at The Thrive Invest Company for a complete audit of your insurance policies!
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