Post by account_disabled on Nov 6, 2023 0:28:52 GMT -5
Of the Civil Code: plEconomyThe most important conceptsWhat is an insurance policy? Key information Not all investments are successful, and a particular example of this are insurance policies, which in fact turned out to be very problematic and illegal. If you want to learn how these financial instruments worked, read this article! What is an insurance policy? A policy deposit is a special type of long-term financial instrument , which is a combination of life insurance and an investment product for UFK Insurance Capital Fund.
It was supposed to be an answer and a way to reduce the amount of capital gains tax the so-called Belka tax . The contract was philippines photo editor intended to protect the consumer in the event of an accident, illness or death and was of an investment nature. The insurer offered an insurance contract, and if the contract period expired, it promised to pay the amount paid, plus an agreed bonus. Owning it required paying monthly premiums and commissions during the term of the concluded contract. Failure to make three such payments or withdrawal of funds from the policy deposit could result in the insured person being charged a liquidation fee of up to % of the invested funds.
Establishing a liquidation fee is not illegal, but according to the Office of Competition and Consumer Protection it was considered excessive and to the detriment of consumers. It led to the loss of all the money invested in the insurance policy. It is worth adding that charging this type of fees is prohibited, as referred to in Art. of the Civil Code. In the case of personal insurance, the policyholder may terminate the contract at any time, subject to the deadline specified in the contract or the general terms and conditions of insurance, and in the absence thereof - with immediate effect.
It was supposed to be an answer and a way to reduce the amount of capital gains tax the so-called Belka tax . The contract was philippines photo editor intended to protect the consumer in the event of an accident, illness or death and was of an investment nature. The insurer offered an insurance contract, and if the contract period expired, it promised to pay the amount paid, plus an agreed bonus. Owning it required paying monthly premiums and commissions during the term of the concluded contract. Failure to make three such payments or withdrawal of funds from the policy deposit could result in the insured person being charged a liquidation fee of up to % of the invested funds.
Establishing a liquidation fee is not illegal, but according to the Office of Competition and Consumer Protection it was considered excessive and to the detriment of consumers. It led to the loss of all the money invested in the insurance policy. It is worth adding that charging this type of fees is prohibited, as referred to in Art. of the Civil Code. In the case of personal insurance, the policyholder may terminate the contract at any time, subject to the deadline specified in the contract or the general terms and conditions of insurance, and in the absence thereof - with immediate effect.