Found old life insurance? Expert assesses value and reversal claims

Found old life insurance? Expert assesses value and reversal claims

Most of the time the policies turn yellow in file folders at home. It's about long-forgotten life insurance policies that were sold by the thousands after reunification. But quite a few have a treasure within them. In the end, an expert should look at whether the old life insurance policy is still worth cash. But you can quickly check whether it actually makes sense to take a closer look at the old papers again.

According to a report by www.mdr.de, capital life and pension insurance contracts that were concluded between mid-1994 and the end of 2007 and have incorrect objection instructions are affected by an unlimited right to object. Even if these insurance policies have already been canceled and paid out, they can be reversed. According to the consumer advice center, over 60 percent of the objection instructions during this period were incorrect and therefore ineffective. These reversal claims can lead to higher payout amounts, especially if the contracts are terminated.

It is advisable to pay attention to whether there is a well-hidden objection policy in the small print. Often it is not clearly highlighted as required. In such cases, an inspection by consumer advice centers or specialist experts may make sense. It is recommended that you bring all relevant documents with you, including the cover letter when concluding the contract, as inadequate objection instructions can also be hidden there.

The decision as to whether reversing the contract makes sense depends on various factors. If the contract was successful and brought high interest rates, it may not be advisable to reverse it. Coupled insurance policies such as occupational disability insurance can also have disadvantages in the event of a reversal.

It is important not to act hastily and not to rely only on online calculators. Although they can provide a rough outline, they do not know all the details of the contract. The consumer advice centers should therefore be used as the first point of contact to check possible claims. There are many providers on the market who offer their services in this area, but caution is advised.

Overall, the Federal Court of Justice's ruling has an impact on the life insurance market because a large number of contracts are affected. Consumers now have the opportunity to receive higher payout amounts. It is to be expected that more consumers will have their old life insurance policies checked and, if necessary, apply for cancellations.