Responding to important questions arising during wartime

The recent tragic events have resulted in many questions about the different competing pension products in case of an insurance event caused by war or hostile action. The summary below answers the main questions that have arisen at this time.

Yes. The various insurance plans have no payment exception for death caused by these events.

No. In this case, eligibility to receive a survivor’s pension is from the state. However, if the amount of the survivor’s pension from the state is less than the survivor’s pension that the survivors may receive from a pension fund, there is eligibility to receive the difference or withdraw the value of the accumulated redemption.

Yes. The New Pension Fund Regulations have no exception for death caused by these events.

Pursuant to the Regulations, there is a 90-day window from the date of the member status change to “married” during which the member is covered and the survivors will be eligible for payment of the survivor’s pension. After 90 days from the date of change in the member’s status to “married”, the fund will pay a survivor’s pension in accordance with the family status recorded at the fund. The aforesaid refers to the member’s status in the “individual policyholder’ plan.

The response to this question varies, depending on the date the policyholder joined the plan. In general, plans marketed before 10/2017 include an exception to paying in this case. Plans marketed after 10/2017 have an offset mechanism that examines the amount of the payment that the policyholder receives from a government entity. If the total compensation received is less than 100% of the policyholder’s salary (in case of full disability), the full payment is not less than 30% of the policyholder’s salary. If the disability is partial, the proportionate share will be paid. There are plans with expanded coverage that void the offset.

Yes, as part of the offset of the amount that will be paid by a government entity. The pension fund will pay compensation up to 100% of the policyholder’s salary and not less than 25% of the policyholder’s salary (in case of full disability), and in the case of partial disability, the proportionate share will be paid.

What is set forth is not a recommendation to amend or not amend an insurance or pension product, and any decision with respect to a personal plan should only be taken after meeting with a licensed pension adviser, who will examine and point out all the aspects and significances derived from the characteristics and needs of the customer. It is made clear that the determining conditions are the conditions set forth in the member’s personal policy or current pension fund.