Death in the family: what relatives should take into account when taking out insurance

DVAG Deutsche Vermögensberatung AG

Death in the family: what relatives should take into account when taking out insurance

Frankfurt (ots)

  • Personal – these insurances end automatically with death
  • Related to topic: These insurances initially continue after death
  • Less effort: these tips can save you unnecessary work

The death of a family member is always a drastic event that imposes a strong emotional burden on the closest relatives in particular. It is not surprising that many relatives – mostly the spouse or children – are overwhelmed by the procedures and obligations that now inevitably arise. Especially with insurance contracts, there are deadlines that must be observed. The experts from Deutsche Vermögensberatung (DVAG) therefore explain what to look for here.

What insurance ends in case of death? Personal insurance ends with the death of the insured. These include life, disability, health and accident insurance. No explicit termination is necessary with such insurance. However, insurance companies still need to be informed; suspend contribution payments and receive any benefits paid. Many insurance companies require a copy of the death certificate. Only the spouse, people who were directly related to the deceased person or those who prove a legal interest receive it. By the way: if no beneficiary has been defined in the insurance policies, this sum falls into the inheritance and passes to the heirs.

What insurance continues? Property insurance policies generally continue after death. That’s because protection is not about the person, it’s about a thing. Best example: the car. If it is no longer needed, you must first unsubscribe. Only then can the insurance be terminated, there is no extraordinary right of termination. With household insurance, the insurance relationship ends two months after death if an heir does not use the home in the same way as the previous policyholder at that time at the latest. The first question that arises when it comes to civil liability insurance is whether it is an individual contract or family insurance. A contract for an individual ends with his death. Contributions paid will be reimbursed proportionally. It is important to immediately notify the insurer of the death. Cause: The refund amount is also calculated on the day of the report. The situation is different with family liability insurance. Insurance protection exists until the next premium is due. If a co-insured person later pays the premium, that person is the new policy owner.

How can I take precautions? A conversation with an expert, for example an investment adviser, can clarify open questions beforehand. It may also make sense to have a general power of attorney issued with the help of a notary at an early stage, which is also valid after death. When in doubt: Better pick up the phone and ask. The following tips may also be helpful:

o Bank statements (for the last twelve months) help to get an overview of which insurance companies have been debited.

o A simple copy of the death certificate is usually enough for insurance companies to prove the death. Only compulsory pension insurance requires the original.

o Ideally, all insurance companies should be informed directly and immediately of the death. An email is enough for this. It is best to find out about the exact deadlines in advance. They can vary significantly depending on the insurance company.

About the Deutsche Vermögensberatung Group

Around 8 million customers trust the competence and experience of the investment advisers of the Deutsche Vermögensberatung Group when it comes to security, old-age provision and asset accumulation. As financial advisers, they help their clients get the most out of their finances. True to the motto “Think before, after”, they have been offering cross-sector financial advice for more than 45 years in more than 5,200 addresses and offices. The family business is the largest independent financial consultancy in Germany. More information is available at www.dvag.de or via Twitter @DVAG.

Press contact:

german financial consultancy
Wilhelm-Leuschner-Strasse 24
60329 Frankfurt
T: 069-2384-6023
Email: [email protected]
www.dvag.de

Original content from: DVAG Deutsche Vermögensberatung AG, broadcast by news aktuell

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