This question list is the practical companion to the article on reviewing an old policy: the questions that let you build a clear picture of any existing pension insurance policy. You'll need the policy document and your most recent annual statement – and twenty minutes.
- Five question blocks: basic data - costs - bonus entitlements - allocation - premium and cap.
- Where the answers come from: the policy document, the terms, the annual statement – and, where needed, the insurer's customer service.
- The basic rule of evaluation: keeping the policy is the default – switching has to be proven with numbers.
Basic data and rights
- When did I sign? (this is when the clock starts ticking on the retirement age in force at signing and the 10-year rule – why it's key)
- Who is the policyholder, the insured, the beneficiary – are they all still current?
- What type of policy is it (classic / hybrid / unit-linked)?
- What riders are attached – and do I know why?
Costs and bonuses
- What charges apply (have the charges on the initial units already run their course – background)?
- Is there a published TKM value for the product, and how much (for newer products)?
- What bonus entitlements exist – when are they due, and what are the conditions (bonuses)?
- What would the surrender value be today – and how much have I paid in total? (The gap is the lesson itself.)
Allocation, premium, cap
- Which asset funds is the savings sitting in – and does that still fit the time remaining (allocation)?
- When did I last check? (If it's been 3+ years: that's the finding right there.)
- Is the premium sized to my current income – and does it make full use of the tax-credit cap (the cap)?
- Have the tax credits of recent years arrived properly (checking)?
The evaluation
The answers point to one of three outcomes: (1) the policy is fine – at most it needs an allocation or premium adjustment; (2) the policy is worth keeping, but it's worth building alongside it; (3) the policy is markedly unfavorable – in which case an itemized switching calculation follows, including the value of the rights you'd give up from signing. The first two are the most common outcomes.
If you've gone through the list and still have questions: bring the policy document and the statement, and we'll finish the review together – free of charge: book a time.
A question about your own situation? Book a free 20-minute consultation →
