Jens Heidenreich

This cancellation deduction so still to reduce the actual buy-back value further, but yes all costs were included in the buy-back value. By the same author: Pouya David Yadegar Los Angeles. At the same time the insurer upon termination make the resolution of the holdback and thus collect once again for the premature termination of life or annuity contract. The holdback is the retention of the insurance company to its distribution partners, to protect themselves against claims losses in the cancellation. Normally increases with each new Commission claim, subject to a liability that the holdback, and with any early termination, the paid closing costs recovered by the intermediary. The insurer remains always intact, rather transfers risk to the client and the broker.

The termination of insurance contracts appears for the insurance industry rather the norm to be the exception. Experts say that at least 70 per cent of all contracts be resolved ahead of time. Due to the mostly low-buy-back value of life or pension insurance to the insured many euro lost upon termination. “In the particular case of unemployment seem to be many people prematurely, because they believe that the valuable assets from life insurance in any case, for example, the income from Hartz IV” is applied. This is so wrong. Although subject to all contracts that are recyclable, so callable are before the actual expiration or retirement, the so-called recoverable assets.

These include ‘traditional’ capital forming life and pension insurance. You include with their time value (buyback) the realisable assets, because there is a right to terminate the contract according to the conditions. Contracts, whose recycling would be uneconomic or would represent a special hardship for those affected, however, are an exception”explains Jens Heidenreich project-LV doctor. The exploitation of a life insurance policy, whose buy-back value is more than 10% below the sum of paid-up contributions is considered to be uneconomical. It is to assume the guaranteed buy-back value.