The expectation is that this Basic Insurance for Self-Employed Persons Act (wet Basisverzekering Arbeidsongeschiktheid voor Zelfstandigen – BAZ) will take effect in 2030. As an entrepreneur, it’s only natural to have questions about this. To answer them, you can read here how the AOV works, what the costs are for an AOV as a freelancer, how the tax deduction works, and what you should arrange right now. This blog is brought to you by Insify.
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An AOV is a disability insurance policy. You pay a monthly premium to an insurer. If you fall ill or become unable to work in any other way, the insurer will pay out an amount to you, ensuring you still have an income. There are two ways an AOV can pay out:
People in employment automatically have a right to benefits through their employer and the WIA (Wet werk en inkomen naar arbeidsvermogen). As a freelancer, you arrange this yourself via an AOV. If you don’t, you will have to rely on your savings, a broodfonds (bread fund), or you will be left without any income.
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An AOV will become mandatory anyway if you are an entrepreneur for income tax purposes (barring a few exceptions). Therefore, it is smart to dive into the details now. This gives you long-term security as a freelancer, even if you become unable to work for an extended period. However, a broodfonds or personal savings can help bridge the waiting period.
What is a waiting period?
The waiting period (wachttijd) is how long you have to wait before your insurance payout starts. With the BAZ, this period is always two years. Suppose you become unable to work tomorrow; you will receive nothing for the first two years, while your fixed costs simply continue. You will have to bridge this waiting period yourself. With a private AOV, from Insify for example, you decide when the payout starts, allowing you to make the waiting period much shorter. You can read more about the differences between the mandatory AOV and a private AOV in chapter 4!
What is a broodfonds?
When you become a member of a broodfonds, you join a group of other freelancers. You all gift each other money if someone falls ill. However, there are a few limitations: the payouts stop after a few years and the financial pool is not infinite. Furthermore, in the plans for the mandatory AOV, a broodfonds does not count as proof that you are insured. You will eventually still have to take out an AOV. Because a broodfonds already pays out after one month, it can perfectly help to financially bridge the waiting period of your AOV.
Using savings
Saving money yourself is naturally also an option to bridge the waiting period, but it does not count as a replacement for the AOV.
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In March 2026, the legislative proposal for the Basic Insurance for Self-Employed Persons (BAZ) was submitted to the House of Representatives (Tweede Kamer). The bill still needs to be approved by both the House of Representatives and the Senate (Eerste Kamer), but due to agreements with the EU, this must happen before August 31, 2026.
The mandatory AOV applies to all entrepreneurs who pay income tax (and do not have an additional job in employment) and will likely take effect in 2030. That seems far away, but as an entrepreneur, you might not want to wait until then. This is because of the reference date (peildatum). This is the date on which the government checks if you already have a private AOV, meaning you do not have to switch to the public scheme.
Note: the reference date will likely fall in 2026. If you want to determine what your AOV looks like yourself, you must arrange a private AOV before this date that is at least equivalent to the mandatory government variant.
Are you unable to get a private AOV, for instance due to existing health reasons? Then the BAZ is actually a solution. Because the government wants all working people in the Netherlands to have a basic safety net, the BAZ has a mandatory acceptance policy: there is no medical check, and no exclusions based on age or profession.
These are the most important points of the legislative proposal for the BAZ:
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If you compare the BAZ with a private AOV for freelancers, you will quickly spot the difference. The BAZ is a basic safety net and only covers the minimum. You won’t get more than that. For many freelancers, this is not enough to cover fixed monthly costs. Add to that the fact that the BAZ only pays out after two years and only applies if you cannot perform any alternative work. A private AOV offers more options: higher coverage, a shorter waiting period, and more freedom of choice.
You can apply for an exemption from the mandatory AOV if you already have a private AOV before the reference date that is at least equivalent to the BAZ. But when exactly is that reference date? That’s why it’s best to look into your options now and choose certainty.
These are all the differences between the mandatory AOV (BAZ) and a private AOV:
BAZ (mandatory) | Private AOV | |
Coverage | Maximum 70% of your profit, capped at the minimum wage | Up to 80% of your income |
Premium | 5.4% of your profit, maximum €171/month | Dependent on age, profession, and coverage |
Waiting period | 2 years | Available from 1 month |
Medical check | No | Yes, depending on the insurer |
Payout until | AOW retirement age | AOW retirement age (depending on the policy) |
Opt-out | No (unless you have an equivalent private AOV) | Yes, provided it is at least equivalent to the BAZ |
Calculation example: calculating the BAZ premium
Suppose you have an annual profit of €50,000. To calculate the AOV premium as a freelancer, you take 5.4% of €50,000 = €2,700 per year, which is €225 per month. However, the premium is capped at €171 per month, so you never pay more than that amount. Your payout will be a maximum of the statutory minimum wage (gross around €2,070 per month in 2026 ), but only after a two-year waiting period following your drop-out.
With a private AOV, you can insure a higher payout, choose a shorter waiting period, and arrange more customization. While the premium will be higher, the coverage will better match your actual income.
What the best AOV is for you depends on your income, your profession, and how much risk you want to carry. Insify can help you make this evaluation.
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The fiscal treatment of an AOV depends on which variant you have.
Periodic AOV (monthly payout)
The premium you pay is tax-deductible. Not as business expenses, but as ‘expenditure for income provisions’ (uitgave voor inkomensvoorzieningen) in your income tax return. This directly reduces your tax amount.
If you receive a payout later on, you declare it as ‘income from previous employment’ (inkomsten uit vroegere dienstbetrekking). The insurer will deduct payroll tax, just like with a regular salary. This deducted payroll tax will be offset against your final income tax assessment.
AOV with a lump-sum payout
In this case, the opposite applies: the premium is not tax-deductible. However, you also do not have to declare the payout you receive as income. The amount will, however, be factored into your Box 3 assets.
If you are unsure which variant works out best for you, ask an insurer like Insify for advice.
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Practical tips:
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The mandatory AOV is on its way. We don’t know the exact date yet, but the reference date is approaching fast. By taking out a private AOV now that meets the BAZ requirements, you can be exempted from the collective scheme later and retain complete control over your coverage.
Kees de Boekhouder helps you with your tax return and deductions. Insify takes care of your AOV. Thanks to this partnership, you are fully protected.
Want to know what the best choice is for your specific situation? Read more at the Insify website and calculate your insurance premium.
Product Manager AOV at Insify
Nicole is an actuarial expert with years of experience in pricing, risk, and strategy within the insurance sector. At Insify, she uses that expertise to help freelancers and entrepreneurs secure a solid safety net without the hassle, so they can focus on what they do best — running their business.
After reading this blog, are you curious about how Kees de Boekhouder helps entrepreneurs with their bookkeeping every day? Schedule a no-obligation, digital introductory meeting with us!
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The tax return must in principle be received by the Tax Administration before May 1st.
The annual statement consists of a balance sheet and a profit & loss account.. You can draft these yourself or let your bookkeeper do it.
If you combine freelancing with salaried employment, or if you have just started as a freelancer and also worked as an employee during the year, it is best to set aside half of your realized profit. If you work solely as a freelancer, you won’t need to set aside as much. Your bookkeeper can best estimate this for you.
Yes, as a private individual, you can request an extension until September 1st of the same year; a bookkeeping firm is allowed to request an extension until May 1st of the following year.
Schedule a no-obligation, digital introductory meeting with us.
