Retirement planning with annuity purchase instead of life insurance or sovereign wealth funds with cash cover

– How the state can ensure the efficiency of retirement planning for the middle class –   After 31 years of work, average earners will only receive a basic pension (social welfare level, with up to less than 758 euros per month) – low earners would have to work 63 years in social security for […]

Credit-funded immediate annuity: British life insurer sentenced several times

With leverage transactions investors are regularly deceived to yield and risk   Effortless wealth: the sales lie “over 12% yield” The Regional Court of Bamberg sentenced a British life insurer in several cases, whose agent had referred to past values “of more than 12%” yield to insurance customers. From this, the intermediary had then presented […]

Drying up of life insurance – too few investment options for too much money

– Why life insurance has outlived its usefulness as a capital accumulation vehicle –   Wim Duisenberg, ex-president of the ECB, when asked how he invests his money: “Personally, I’m in the fortunate position of having no reserves.”   Statistically, up to more than 80 million German citizens own more than one life insurance policy. […]

Choice of law and advantages of European life, pensions and health insurance

– Opportunities and risks for policyholders and their insurance brokers –   Foreign insurance companies, especially those from the European Economic Area (EEA) and the European Union (EU), are increasingly competing with domestic suppliers. For insurance intermediaries and insurance customers, this creates risks, but also opportunities.   Regular notification procedure EEA and EU insurers must […]

Roulette in life and pension insurance entitlements

– When assets go to the wrong beneficiary on death -.   The race between heirs and beneficiaries in the event of death Even in the normal case of a revocable subscription right, a notification from the insurer to the beneficiary is still required after the death of the policyholder, according to which the beneficiary […]

Life insurance companies and foundations from Liechtenstein, Bermuda, Switzerland and Papua New Guinea

– When structures for asset protection and succession planning are ineffective – Banks and insurance companies, as well as financial advisors from Germany and abroad, are praising foreign camouflage constructions via prospectuses and appraisals. This should make it practically possible for assets of 100,000 euros or more to constitute a secure succession arrangement by circumventing […]

Reduction of life insurance: No information obligation for life insurers on reduction possibilities

Members of the German Bundestag asked: “What legal obligations do life insurance companies have to inform their customers about the possibility of reducing claims before the contract is concluded, and what is the practice of life insurance policies as established by the Federal Financial Supervisory Authority (BaFin)?   The answer of the Federal Government of […]

OLG Cologne: Double acquisition costs in life insurance not permissible

The Higher Regional Court of Cologne (OLG Köln, judgement of 02.09.2016, file no. 20 U 201/15) forbade a life insurer to charge Riester customers double acquisition costs – once costs with a maximum rate of 2.5 percent (previously 4.0 percent) of the premium volume spread over five years, and in addition further costs over the […]

Life insurers do not have to inform customers about cuts

What legal obligations do life insurers have to inform their customers before the conclusion of the contract about the possibility of reducing claims, and what is the practice of life insurance policies as established by Bafin? The German Bundestag recently dealt with this question. The answer of the Federal Government of (BT-Drucksache 18/7221) to this […]

You should take this into account when revoking your life insurance contract

Pursuant to § 7 Para. 1 of the German Insurance Contract Act (VVG 2008), insurance companies must inform their customers in text form of the “contractual provisions, including the general terms and conditions of insurance, as well as the information specified in a statutory instrument pursuant to Para. 2” before concluding a contract.   This […]