What is manager insurance?
Despite its name, manager insurance is not just for managers and executives, but also for non-management employees. The purpose of manager insurance is identical to that of the pension fund – pension savings for your retirement age: age 62 for women and age 67 for men.
In addition to long-term savings, manager insurance also offers coverage in both cases: Insurance in the event of disability – paid out as a pension; and life insurance in the event of one’s death, paid out to one’s family as a considerable lump sum. Nowadays, the life insurance has to be purchased separately and is not provided as part of the manager insurance “package”.
The costs of the insurance – are paid partly by the employee and partly by the employer.
manager insurance has undergone great changes over the years:
- Of the policy’s structure – from closed (classic) policies to open, wage-linked policies.
- In the mixture of the division between the risk and savings components.
- In the tracks for investing the savings money – from guaranteeing a return of approximately 4% to an investment of 100% in the capital market according to various investment tracks.
Manager insurance allows you to individually customize the type of the insurance and the level of risk and investment according to your age and personal need.
What are the advantages and drawbacks of manager insurance?
Things are never black or white, and it always depends on your personal situation. But there are some things you should know about manager insurance:
Manager insurance is a contract – both for better and for worse
Manager insurance is a contract between the insurance company and the insured. A contract means that most of the terms of the manager insurance are fixed and cannot be revoked or modified – both for better and for worse. For example: If the insurance company wants to increase the policy’s insurance premium, it can do so only for new insureds.
Manager insurance has no qualification period
Unlike a pension fund, manager insurance has no qualification period: a consecutive period taking place from the date of joining the insurance and until it becomes effective. This means that the insurance becomes effective from the moment of joining the insurance, and therefore could be more appropriate for people with preexisting conditions. Subject to the terms for signing as prescribed by the insurance company.
For example: If a patient who has high blood pressure has declared as much when she joined the manager insurance, and the insurance company agreed to admit her on ordinary terms or with a medical increment, she will be insured from the moment she joins the insurance, and will not have to wait until the end of a qualification period which could take several long months.
A guaranteed coefficient – must be checked and calculated
Prior to 2013, insureds who joined manager insurance enjoyed a guaranteed coefficient. What is that coefficient? It is a number that, when the entire savings accrued from the moment of retirement is divided by it, the monthly pension you will receive for the rest of your life is obtained.
The coefficient is affected by all kinds of variables, such as one’s life expectancy, and usually ranges between 180 and 200. In policies purchased before June of 2001, the coefficient is much lower. Naturally, the lower the coefficient, the higher the pension.
In the past, manager insurances provided an invariable “guaranteed coefficient” until one’s retirement, and therefore it could pose an advantage for a person who has had manager insurance since before 2013.
manager insurance – yes or no?
You should remember that any decision regarding manager insurance depends on your personal situation and on many variables, some of which we’ve mentioned above.
When such a decision is made with accompaniment by pension experts, all of your personal variables are taken into account along with the external data, culminating in a calculation of this step’s expediency. This review is something you would find highly difficult to do on your own, since you’d have to be well-versed on the various fine-print clauses, such as changes occurring between earlier versions of the manager insurance and the current versions, whether or not a guaranteed coefficient is available, what the expected coefficient is, what the life expectancy is, medical condition and qualification period, management fees, profession, et cetera.
Kali’s experts are highly proficient with all past types of manager insurance, down to their tiniest details. We will consider with you whether manager insurance is right for you according to your personal attributes and to the type of manager insurance you have.