People who are self-employed within a company have every interest in contracting an EIP or an individual pension commitment. Subscribing to such insurance entitles you to significant benefits. The insured person benefits, among other things, from a supplement to his pension. From a tax point of view, it also offers certain benefits. In this guide, discover the main advantages of an EIP.
Have an attractive pension supplement
It should be noted from the outset that the individual placement commitment is a pension formula intended for workers or the self-employed. This is a life insurance policy that was created with the entry into force of the Vandenbroucke law. It replaces the business manager guarantee. The subscriber is entitled to a guaranteed return to which is added a profit sharing. It can be entered into for the benefit of employees, but also independent company managers. For more information on the subject, please see this site .
It should be understood that it is the company which employs you which subscribes to the EIP. It supports the payment of premiums. It is then entitled to consider them as professional expenses. It only has to respect the 80% rule which stipulates that the legal and supplementary pension must not exceed this threshold. It is important to specify that at the end of their career, employees or managers benefit from a legal pension. Joining an EIP allows you to benefit from additional income in the form of a pension.
The possibilities offered by this life insurance are numerous. First, if you stop working before the legal retirement age, you can continue to save via the EIP. The insured also benefits from significant capital if he has a real estate project in prospect. It should also be specified that in the event of the sale or liquidation of the company in which you work, the amount saved is definitively acquired by you.
Particularly attractive tax advantages
By subscribing to an EIP, the company offers its employees and some of its managers a supplementary pension.
The interest of such a commitment for employees
The payment can then be made in the form of capital or an annuity. It is also a way for the company to retain and motivate certain workers . The tax conditions of a salaried EIP are very interesting. It should be noted that employer’s allowances constitute professional expenses. As a result, they are deductible on his part. They also benefit from a tax reduction of around 30 to 40% of the premium based on the improved average rate. This rule applies mainly to the employee’s personal co-payments.
The advantages of an EIP for society
The company can select itself who will be the beneficiary of an Individual Company Commitment. They have to be defined members of staff. The company does not have the right to subscribe it for a complete category of employees. Premiums paid by the company can be deducted as business expenses. A certain threshold must not be exceeded with regard to the capital allocated to employees or managers. Since 2012, it has been set at 2160 euros per worker in one year. In the event of a payment exceeding this amount, the excess will be treated as a rejected expense.