The discount is over, the policy remains: The Capital Market Authority puts an end to short-term discounts on life insurance
The Capital Market Authority has published new regulations prohibiting insurance companies from offering short-term discounts on life insurance policies. Discounts will be fixed for at least ten years, and companies will be required to notify policyholders one month before the discount ends. The regulations take effect on February 1.
The Capital Market, Insurance and Savings Authority has published new regulations prohibiting insurance companies from offering short-term discounts on life insurance policies. Under the new rules, any discount must be fixed for at least ten years, and the regulations will take effect on February 1. Lidor Adam, head of the Life Insurance Department at the Authority, explained that high discounts in the first year are not a basis for an informed decision on a 30-year product, and that the public's financial literacy is not always high. The Authority does not fear that companies will stop offering discounts, but rather that they will spread them over a longer period. One month before the discount ends, companies will be required to send an email and text message with details of the new payment and discount rate, to allow policyholders to renegotiate. Adam noted that bargaining on life insurance is worth thousands and tens of thousands of shekels.