Securing construction financing with RVL

2022-01-05 23:27:16

The distributor wording is actually a bit like a door-to-door salesperson, but the different amounts are normal for life insurance and disability insurance. It basically reflects the performance of the insurer's investments. If the insurer is confident that it can earn well, and probably also if your personal risk of a claim is not that high, you simply pay a lower amount as a premium. If the business is not doing so well, then the amount can be omitted here. This is basically the counterpart to the profit participation in a private pension insurance or a unit-linked life insurance with payout.

2022-01-05 23:43:26

Thank you for the feedback. My problem is that here the insurer's risk is simply shifted onto the customer. In an extreme case, the customer then has to pay more than double and cannot calculate properly. However, internal risk calculation or risk balancing and cushioning is precisely the job you pay an insurance for. If anything, it should be called "Dynamik" or something similar and combined with improved benefits. That's how I know it so far. Of course, it is also a nasty thing and basically an incomprehensible regular price increase. Because you never know if the so-called annual premium increase ("Dynamik") actually corresponds to the value of the increased benefit.

2022-01-06 00:13:02

Dynamics is something different, it is supposed to offset inflation. Mathematically, it does so. Whether you can still afford your kebab every day then is another matter.

2022-01-06 00:22:41

With the insurance where I got the thing with the dynamic, it is 5% annually, yes optionally even 10%. We currently don't have that much inflation again :)

2022-01-06 00:23:37

It's just an option. As far as I know, you don't have to incorporate dynamics.

2022-01-06 00:52:11

I would like to ask a follow-up question about RLV here, I don’t want to open a new topic just for this. I have an RLV offer (criteria: coverage 300K for 20 years, non-smoker, fixed premium) from a provider who gives me two amounts to be paid instead of one. It looks like this (including asterisks, all quotation): ---------------- Monthly payment contribution* €16.25 (Monthly tariff contribution) €36.11 *The payment contribution is the premium that actually has to be paid. It is guaranteed for the current business year and can change in the following years, but will never be higher than the tariff contribution shown in parentheses. In addition, the premium can still change after the application review (for example due to health risks). You alone decide whether the contract should come into effect. ---------------- Is this strange business practice with minimum - maximum contributions common among RLV providers? What do you think about it? Personally, I feel "played for a fool," excuse the expression. Especially with the sentence "You alone decide whether the contract should come into effect," I feel that the customer is being treated like an idiot.

Hello Hoislebauer... yes, that is normal, at least I don’t know it any other way. The payment contribution is the net premium (after deduction of surplus funds, which insurers usually generate). If the surpluses are not that large, then the net premium can shift towards the tariff premium (gross premium) or even reach it. Whether this actually happens in practice, I don’t know.

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Securing construction financing with RVL

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