Is possible to request redemption or reduction of the life insurance policy? Analysis of cases and procedures to be followed
The life insurance policy is a contract which gives the right, behind the payment of premiums for a predetermined period, to receive a sum of money in a lump sum or annuity each life insured. Often you enter into a life insurance policy when you want to set aside a sum of money to supplement their retirement and improve the standard of living in futuro.Per contract after a specified number of years, who has taken out a life insurance policy can terminate the insurance relationship and apply for payment of capital (redemption).
Not all life insurance policies may be redeemed. They may be issued in whole life insurance policies or mixed ones, but not the term life insurance policies. For the purposes of the redemption request, in addition to the question and a photocopy of an identity document valid, the insured must attach the original of the bill. If you have not been delivered or in case you were lost, must be attached to the complaint submitted to or loss of the statement of the loss of the policy.
When the request is made for redemption, accompanied by the documentation required, the firm liquidates the amount due within thirty days. And 'good practice to always check in advance the capital redemption because, withdrawing in advance, could be applied to heavy penalties on capital. The insurance company is required to provide a response no later than 10 days from the date on which the request was received.
The criteria for determining the redemption amount is specified in the conditions of the policy. If you do not want to redeem the policy but only temporarily or permanently suspend the payment of premiums, for example because it is in a state of economic difficulty or simply you are not happy with the product, you can ask for the so-called reduction. In this case, the policy remains standing with a capital (income) assured obviously lower than initially expected, based on the amount actually paid. The capital arising from premiums paid will still be re-evaluated each year according to the returns of the fund.
As for redemption, even for the reduction must have been paid the minimum annual premium under the policy conditions.
After he was suspended a contract can still be reactivated recovering the payment of annual premiums.
04/04/2011
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Translated via software
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Source:
Italian version of ReteIngegneri.it