In law no 5510, optional insurance is defined as “the insurance which allows the individuals to be subject to long term insurance branches and universal health insurance by paying optional premiums”.
As of 01.10.2008, the conditions below apply in order to be optional insurance holder:
1. Residency in Turkey,
2. Being over the age of 18,
3. Not working in a manner to require being subject to compulsory insurance in the Law or working as an insurance holder but less than 30 days a month or less than 360 days within the last year or not working full time.
4. Not being put on pension due to one’s own insurance
5. Applying to the Institution with an optional insurance request petition
As of 01.10.2009 when the Law no 5510 came into effect, the requirement that insurance holders shall pay 1080 days of premium was abrogated. With the regulation, optional insurance procedure became easier.
Optional insurance starts from the date on which the application is received in the records of the Institution.
Optional insurance premium is 32% of the earning subject to the premium determined by the insurance holder, between the lower limit (minimum wage) and the upper limit (6.5 times of the minimum wage) of earning subject to premium. For the individuals who work as optional insurance holders as per Article 4/a, 4/b or 4/c of Law no 5510 at dates on which premium is paid as an optional insurance holder, the paid optional insurance premium periods overlapping the compulsory insurance will be cancelled and the premiums paid for such periods will be returned to the concerned parties.
Law no 5754 regulates clauses of law no 5510 regarding optional insurance and enables insurance holders who work less than 30 days a month or part-time to pay optional insurance premiums within the same month. Periods in which optional insurance premiums are paid will be considered in executing the provisions of invalidity, old-age and life insurances and universal health insurance, and such periods will be deemed to be included in the insurance term (former Bağ-Kur [Social Security Organization for Artisans and the Self-Employed]) under (b) of paragraph one of Article 4 of Law no 5510.
This means that a person who pays optional insurance premiums for more than 3.5 years after the date of 01.10.2008 will have to pay more premiums and retire later while he would be entitled to retirement according to Bağ-Kur provisions.
Optional insurance premiums shall be paid until the end of the following month. Insurance premiums which are not paid together with the default fine and increment within 12 months will not be included in the insurance term.
The optional insurance can be terminated with a written request based on the following circumstences:
1. If the premium of the month within which the request is made is not paid, optional insurance ends the day following the last day of the month for which the premium is paid. If the premium is paid for the month, optional insurance ends on the date that the petition is received in the records of the Insurance. Premiums paid after the end of optional insurance will be returned if demanded.
2. If the individual has requested pension while paying premiums, optional insurance ends in casethe insurance holder is qualified for pension or full payment of premiums.
3. With the exception of the Turkish workers who work abroad by employers undertaking works in countries that do not have social security contract with our country, optional insurance ends on the date of transfer of residence to abroad with respect to the provisions of international social security agreements.
4. Optional insurance ends the date of decease of the deceased insurance holder if he does not have premium debts. If the deceased insurance holder has premium debts, optional insurance ends on the date of decease on condition that the beneficiaries pay the debt within 12 months with default penalty and interest.
5. The optional insurance terminates one day before he starts working under compulsory insurance.
6. Optional insurance ends on the date the insurance holder’s work abroad ends. The individuals will have to apply for optional insurance if they want to.