Your insurance policy is an important asset because:
1. It protects your family In case of death.
2. By selecting supplementary premiums, you have the opportunity to respond to serious illness, disability, loss of income and other hazards.
3. There are insurance policies that combine both coverage and savings. You can thus experience unplanned financial obligations which may cause disruption in your personal or family budget. The same plans can also ensure your financial independence when you are old.
4. Your insurance policy can be used as collateral against financial liabilities. For example, you can assign it to a financial institution.
It is important to keep your insurance policy:
1. Securing insurability
Insurability is a person’s ability to buy insurance. The Insurance Policy you currently hold in your hands shows that you have been accepted as insurable for the mentioned coverage amounts, irrespective of the fact that your health conditions may have in the meantime changed to the point that you cannot secure new insurance coverage today. If for any reason you wish to terminate your Insurance Policy, first ensure that you are insurable.
2. Claiming a tax deduction
Τhe state encourages private insurance, and provides tax deductibility as an incentive. Under current laws, this incentive can reach up to 35% of the insurance premium.
3. Loss of tax exemption in case of cancelation
In case of cancelation of a life insurance policy within six years from its date of issue, a percentage of the premiums that were granted as a discount will be taxed as follows:
- Cancelation within 3 years: 30%
- Cancelation from 4 to 6 years: 20%