Optional Insurance in the Turkish Social Insurance Regime

September 27, 2022by Bünyamin Esen0

In the Turkish Social Security Regime, alternative solutions have been developed in order to include those who are not actively in the working life within the scope of the social security system. One of these solutions is “optional insurance (voluntary insurance)”.
Optional insurance is the insurance that allows individuals to be subject to long-term insurance branches and general health insurance by paying premiums voluntarily. The person who takes out optional insurance will have the right to receive a pension in return for the social insurance premium that he or she will pay from month to month. Likewise, the person with optional insurance is entitled to benefit from health services within the scope of general health insurance.

Who can apply for optional insurance?
In order to be insured on demand, it is necessary to be a Turkish citizen, to reside in Turkey or to live in countries where a social security agreement has not been signed while residing in Turkey. In addition, the following conditions must be fulfilled in order to be optionally insured:
– Not working in a way that requires compulsory insurance subject to Turkish Social Security Laws or working less than 30 days in a month or not working full-time as an insured.
– Not having a pension due to his/her own insurance.
– To be over the age of 18.
Those who had optional insurance before the date of 1st of October, 2008 continued their optional insurance according to the abolished laws before the effective date, their optional insurance continued without the need for any additional action.

Where and how to apply?
In order to be optionally insured, it is necessary to apply to the Social Security Institution with a request for optional insurance.

Those who want to become voluntary insurance for the first time should apply to the social security provincial directorates/social security centers where they reside, with the “Optional Insurance Entry Declaration”, a sample of which is attached to the Social Security Transactions Regulation. The application can also be made online via the application link under the Social Security Institution menu via the e-Government system.
For the insured who want to be insured on demand again, it is sufficient to apply with a petition.

When does optional insurance start?
Optional insurance starts from the day following the date the application is submitted to the Social Security Institution’s records.

How much premium do optional insurers pay?
Optional insurance premium is determined according to the daily earning amount declared by the insured, provided that it stays between the lower and upper limit of the daily earnings subject to the premium.
Optional insurance premium is 32% of the monthly earnings subject to premium determined by the insured, between the lower limit and the upper limit of the earnings subject to premium. 20% of this is disability, old-age and survivors insurance premiums, and 12% is general health insurance premiums. Accordingly, for the second half of 2022, the monthly premium amount to be paid by an optional insured who declares an income from the lower limit of daily earnings subject to premium is TRL 2.070,72.

The optional insurance premium must be paid on the last day of each month at the latest.

The insured, who does not pay the premium of the month for which it belongs, within 12 months at the latest, is no longer able to pay the premium debt of that month, and the insurance benefits cannot be served for the relevant month for which the premium debt is not paid.

How does optional insurance expire?
Optional insurance ends in the following cases:

  • The insurance of those who request to terminate their optional insurance ends as of the day following the last paid premium day.
  • The insurance of those who request a pension will end as of the date of the request, provided that they are entitled to the pension.
  • Likewise, the insurance of the deceased insured is deemed to have ended as of the date of death.

Evaluation of the discretionary period
Optional insurance is considered as the insurance period within the scope of subparagraph (b) of the first paragraph of Article 4 of the Law No. 5510, and those who are insured in this way are subject to retirement conditions such as those who work on their own name and behalf.

Bünyamin Esen

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