Starting February: Capital Market Authority Bans Temporary Discounts on Life Insurance

The Capital Market Authority is prohibiting insurance companies from offering temporary discounts on life insurance policies. Starting in February, any discount granted must remain in effect for at least 10 years, aiming to prevent the phenomenon of a low initial price that increases after a short period.

The Capital Market Authority has issued final regulations banning insurance companies from offering temporary discounts on life insurance policies. Starting this February, any discount given to a policyholder must remain in effect for at least 10 years and cannot be canceled midway. This means the end of the practice where insurance companies lure customers with a low initial price that rises after a few years. The article notes that the price naturally increases with the policyholder's age, but the discount itself will remain valid throughout the decade.