Terminating YEL insurance

Apply for the termination of your YEL insurance when your self-employment ends. YEL insurance can be terminated retroactively. You can also apply for termination in advance. The last day when your YEL insurance will be valid is your last working day.

Send us a termination application

Apply for the termination of your YEL insurance when your self-employment ends. YEL insurance can be terminated retroactively, or in advance. The last day when your YEL insurance will be valid is your last working day.

Working in this context means actual work and business operations. Thus, if you are closing down your company and are only finalising the related paperwork, this is not considered actual work or business operations.

The easiest way to apply for the termination of your insurance is through our online service: YEL insurance > Insurance policy information > Terminate insurance. After you submit the application, we will process it and, if necessary, request more information from you. We will send you a decision on the termination of your insurance.

Log in to Varma Online Service and apply for termination

Remember to apply for the termination of your YEL insurance yourself. Varma cannot terminate your YEL insurance based on, for example, notification you submit to the Finnish Patent and Registration Office on the termination of your company.

If you need help in setting the right termination date or if you have other questions related to YEL insurance, you can always contact our experts.

Send us a message in Varma Online Service

When should YEL insurance be terminated?

YEL insurance should be terminated when your self-employment ends. Your work may be ending completely, or you might have a longer period of not working. YEL insurance can be terminated retroactively if necessary.

A longer break from work

A longer break from work may arise, for example, if you take parental leave, leave for military service, or begin full-time studies. Sometimes work may be interrupted due to a long period of sick leave.

The insurance may be terminated if the break in your work lasts approximately four months. When you resume working, take out new YEL insurance starting from the day when you begin working again.

Take out YEL insurance

Significant decrease in work

Sometimes, the work does not end entirely, but decreases to the extent that your work input falls below the limit of YEL income (€9,010.28 in 2024). In this case YEL insurance's termination date will be the date when the work has decreased to below the minimum level. Take note, however, that your taxable income as self-employed, withdrawn salary, or unwithdrawn salary alone do not mean that your YEL income would be below the minimum level.

You are responsible for reporting any longer-term changes that occur in your work input. Inform us of changes in, for example, your turnover and working hours.

Read more about YEL income

If there is no certainty that your activities will continue, your insurance can be terminated. The clear ending of your activities is indicated, for example, by the selling of your equipment and fixtures or the termination of the lease agreement for your business premises. If your self-employment continues later on, you can take out new insurance.

Take out YEL insurance

Changes in company holdings

The insurance should also be terminated if you sell your company’s shares and your holding in the company falls to 30 per cent or less. If you continue working in the company, the company must insure you under TyEL.

Read more about YEL insurance in different forms of company

Termination of YEL insurance when you retire

When you retire on old-age pension, your YEL insurance ends automatically on the day before the start of your retirement. This information will be included in your old-age pension decision. In this type of situation, you need not separately terminate your YEL insurance.

If you stop working before you retire on old-age pension, inform Varma about it before applying for pension. If you continue your self-employment while drawing old-age pension, you can take out voluntary YEL insurance.

Read more about applying for old-age pension

What happens with the paid insurance contributions once YEL insurance ends?

Your YEL insurance will be calculated for the period during which the insurance is valid. For example, if you have paid YEL contributions for the period 1 January – 31 December, but your insurance is terminated already on 30 November, we will refund the December YEL contribution to you. For the refund, be sure to give us either your own or your company’s bank account number.

However, if the insurance ends and you have not yet paid all your YEL contributions for the insurance’s period of validity, we will invoice them as usual. If you need to request an extended term of payment for the remaining contributions, you can do so in Varma Online Service.

Log in to Varma Online Service

Situations in which YEL insurance is not terminated

In some situations YEL insurance is not terminated even if there were significant changes in your self-employment. It is your responsibility to inform us of any long term changes in your work input. In some situations you can use the flexibility option to reduce your YEL contributions by 10-20 percent or change the due months. Click on the titles below to learn more about these typical situations.

YEL insurance is personal, and one policy covers all of your self-employment. You only need one YEL insurance policy, even if you have more than one company. If you stop working in one company, but continue working in another one of your companies, your YEL insurance will not be terminated.

YEL insurance should also not be terminated if your work is interrupted for a brief period of time, e.g., for summer holidays or a short-term illness. Even though your YEL insurance is not terminated due to an illness, you may still be entitled to daily sickness allowance from Kela.

Read more about the daily sickness allowance for the self-employed on Kela’s website

If you stop withdrawing a salary from your company or you withdraw less salary, that is not grounds for terminating your YEL insurance. Your obligation to insure is determined by the value of your work input. Your taxable income or the amount of your company’s profit/loss are not the only grounds for terminating the insurance.

Read more about YEL income

Self-employment that is seasonal and continues from one year to the next is considered to be continuous even if the activities cease for several months during the calendar year. For example, running a kiosk during the summer can be viewed as being continuous.

If you know that your self-employment will continue, your YEL insurance must be in force throughout the year, even if you work as self-employed for only part of the year. Take the seasonal nature of your business into account when setting the level of your income. It is also often a good idea to have the insurance contribution due dates coincide with the months when you work.

Help with using our services

Take care of your YEL matters online

In our online service, you can, for instance

  • apply for a change in your YEL income
  • view your past and future YEL contribution
  • request an extended term of payment for an invoice

Sign in to the service using your personal banking codes.