Special Characteristics of Personal Insurances

A savings policy is a form of insurance, which involves savings which can be withdrawn in installments. An example of a savings policy is an employee insurance, which is a life insurance taken out by the employer for its employees. Savings may also be accrued through pensions insurance.

If the policy holder of a personal insurance has accrued savings as a result of insurance payments, he/she has the right to suspend the insurance payments and receive free insurance corresponding to the amount of the savings or the savings themselves as specified in the terms and conditions of insurance. When a personal insurance expires, the policy holder has a right to receive the repurchase value, i.e. the savings part, despite the insurer not having any other liability. In these situations one should contact one’s own insurance company and ensure that one will receive the benefit accrued from the savings for oneself. The terms and conditions of pension insurance may, however, regulate that the policy holder has no right to receive the saving part.

If there no right to the savings part exists, this must be clearly stated in the terms and conditions of insurance. It is worth realizing this, as it will change the nature of the insurance in question in an essential way.

If the policy holder terminates the pension insurance he/she has the right to transfer the saving part to another pension insurance or account for saving in accordance with the law. The terms and conditions of the insurance may, however, prescribe that the policy holder has no right to transfer if there is no assurance payable at death included in the insurance. In a notice of termination the policy holder has to state where the saving part shall be transferred to.

If a life insurance has terminated as a result of repurchase, the policy holder is entitled to receive a new insurance in the form of a continued insurance.