Life Insurance: Hard Questions on TV Talk Show
The uncertain future of life insurance as a form of retirement planning is causing concern among many consumers. According to experts, 45 million life insurance policies in Germany can be rescinded.
The theme of Monday evening’s ARD program “Hart aber fair” was “Life insurance crash – scaremongering or real danger?” One fact that was not disputed during the discussion is that life insurance will not be used for retirement planning purposes in the future. But what does this mean for the 85 million life insurance policies currently in force in Germany?
Rescind Policies at a Profit
According to the consumer protection experts of FACTO Financial Services AG consumers are becomming increasingly anxious. While there was a serious debate, there was only a marginal discussion of solutions, say the consumer right experts of FACTO. According to a 2014 ruling of the European High Court, consumers have the right to rescind policies concluded between 1995 and 2007 if they received insufficient information. Experts believe this could affect around 45 million existing policies.
Free Initial Assessment by FACTO
It makes sense first to determine whether the policy can be rescinded, the amount of compensation in addition to the surrender value and whether there are risk components, such as an inability to work or death, that must be insured through alternative policies.
At FACTO an initial assessment is offered via exclusive distribution partners free of charge. "Rescission may be a good option for consumers. But they need in-depth advice and support. This starts with the complex calculation of the compensation and continues through enforcement before a court,” says FACTO, explaining its procedure for consumers which includes the entire rescission process.