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 (€8,575.45 in 2023). 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 Take note, however, that your taxable income as self-employed, withdrawn salary, or unwithdrawn salary alone do not mean that your YEL income would be below the minimum level.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