What is an insurance umbrella?

The insurance umbrella expands the pension fund’s insurance coverage beyond the provision of the pension fund’s regulations. The insurance umbrella grants three key additions which significantly upgrade the insurance coverage provided by your pension fund. The additions are:

  1. Cancellation of the qualification period
  2. Cancellation of the offsetting of claim money against pensions awarded you by government institutions
  3. Coverage of loss of capacity to work according to definition of a specific occupation

What is the meaning of each upgrade section of the insurance umbrella?

Cancellation of a qualification period

What is a qualification period?

A pension fund has a qualification period of 60 months. The qualification period starts from the date of joining the pension fund, and during such period the insured is not covered against cases of disability and death caused due to a medical condition, illness or defect which preexisted the joining of the pension fund.

The insurance umbrella allows one to purchase an extension, which will become effective if the pension fund dismisses the claim on the grounds of it being a claim related to a preexisting medical condition. The insurance umbrella effectively cancels the qualification period prescribed by the pension funds.

Cancellation of the offsetting of claim money against pensions awarded you by government institutions

Pensions awarded by government entities

If the insured is entitled to a pension due to an incident which caused an injury to their capacity to work from one of the following government entities: the Victims of Hostile Actions Department and the IDF Disabled Veterans Department at the Ministry of Defense, the Israel Police, National Insurance or the Prison Service – Ministry of Defense, the pension funds will offset the payment received from the government entity from the disability pension to be paid by the pension fund.

What coverage does the insurance umbrella provide?

The insurance umbrella provides coverage which cancels that offsetting. It pays the difference between the post-offset amount and the amount which should have been received had there been no offset; meaning, it covers the amounts offset by the pension fund.

Coverage of loss of capacity to work according to a specific occupation 

In the pension funds, the basic definition of an occupation is defined as a “reasonable occupation”, but there is effectively no single clear definition. The lack of definition leads to a state of affairs which is not beneficial to the insureds, seeing as the pension fund can dismiss their claims in cases of loss of capacity to work on the grounds that the insureds can work in a different “reasonable occupation”.

For example: A clinical psychologist is in a situation of loss of capacity to work since his vocal cords have been injured permanently and he cannot speak to his patients. If he were to sue the pension fund, the fund might argue that he could work in a different “reasonable occupation”, one not requiring that he speaks and converses with people.

The insurance umbrella will provide coverage in cases where the insured is no longer able to go on working in their specific occupation, but are able to work in another reasonable occupation.

Kali’s experts will plan and compile the components of the insurance umbrella to suit your personal situation. Each component of the insurance umbrella can be purchased separately, and the thinking and planning should be done out of an understanding of the bigger picture of your situation: economically, professionally, personally, what other insurances you have and what financial assets are available to you in cases of loss of capacity to work.

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