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LV sale

LV sale

Yves Remelius > Business consulting > LV sales

Yves Remelius

LV sale

In a climate of interest rate fluctuations, euro devaluation and economic uncertainty, it is essential to proactively manage your pension provision. It is important that you continually review your life or pension policies to ensure that they can withstand changing conditions and do not jeopardize your financial future.
There are four key areas that require particular attention during such a review to ensure the stability and reliability of your pension provision.

 

  1. Risk Limitation Act: This law may affect the assets of German policyholders by regulating how life insurance companies that have run into difficulties are dealt with.
  2. §Section 314 of the Insurance Supervision Act (VAG): A lesser-known but significant paragraph that forces policyholders to continue paying premiums while prohibiting insurers from making payments to customers if the insurance company gets into difficulties.
  3. Collective Action Clauses (CAC clause): These clauses can result in the decisions of a majority of creditors reducing the value of your life insurance if government bonds are downgraded.
  4. Restructuring and Liquidation Act: This law, born out of the lessons of the 2008 financial crisis, could lead to savings being used to bail out banks, calling into question the security of savings deposits over €100,000.

The most important facts in brief:

  • A reform from 2014 is causing many people problems: The elimination or reduction of valuation reserves is causing the payout amounts of old-age provision to fall and returns to drop rapidly in some cases.
  • The savings portion of your contribution is actually only 70-80% (!). The insurers take the rest to pay their 'costs'. You then receive the so-called guaranteed interest rate on this actual savings portion.

If you decide to cancel directly with your insurer, there are a number of disadvantages that you should be aware of:

  • Unaudited surrender value, which you will usually find in your status report.
  • Lack of tax deductibility for losses (negative balance between premiums paid in and the surrender value).
    Full capital gains tax is due.
  • The insurance company will NOT check your repayment claims. The same applies to claims for additional payments such as cancellation fees.

Advantages of our provider:

  • Payout after 18 days.
  • Ongoing review of the contract, e.g. additional payments.
  • No ongoing costs and no legal protection insurance required.
You would like to initiate the sale through us. How do you proceed?
  1. You get in touch with us. In a detailed discussion, we will jointly determine your options for selling an insurance policy.
  2. If your initial assessment is positive, please send us your documents.
  3. Then fill out a purchase contract and send it back to us.

Watch out: We only accept orders for processing that have a have a minimum surrender value of 15,000 euros or, in the case of several contracts, a total volume of at least 20,000 euros. This includes the sale of life and pension insurance policies and building society savings contracts. For lower sums, we recommend direct sales to the company.

Any questions? Simply contact us and we will explain everything else to you.

If you wish, you can also find out your options yourself in advance by using our valuation calculator.
You will find it here.

 

We are of course available to answer your questions at any time.

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