NEWSLETTER EMPLOYEE BENEFITS

Transcription

1 NEWSLETTER EMPLOYEE BENEFITS Edition 1 Year 2014 Impact of the Law Swennen on the Beneficiary Clause regarding life insurance For companies and their employees enrolled in a group insurance.

2 Page 2 Contents From which date is the new legal provision applicable?... 3 Who will receive the life insurance lump sum of your group insurance until 4 March 2014?... 3 What changes because of the legal provision?... 3 What does this mean?... 4 Do you have the possibility to renounce the application of the legal provision?... 5 Do you have an individual life insurance policy?... 5 Questions?... 6 Disclaimer Whilst care has been taken in preparing this document, we do not assume responsibility for the accuracy or completeness of the information reviewed. The information contained within this document is confidential to Belgibo Insurance Brokers and our clients/prospects and has been produced solely for the purpose of consideration of the latter's risk financing arrangements. The contents of this document may not be reproduced or disclosed to any third party without the prior written approval of Belgibo Insurance Brokers.

3 The beneficiary clause in life insurance: Impact of the new conditions regarding the Law Swennen Page 3 From which date is the new legal provision applicable March, 5 th 2014 Who will receive the life insurance lump sum of your group insurance until 4 March 2014? In case of your death the life insurance lump sum will be settled in favour of the beneficiaries following the stipulations in the group insurance contract. We refer to your group insurance contract regarding the specific stipulations in respect of the beneficiary order. In most cases the lump sum will be settled following the order of succession below: Rank 1: Husband, Wife or legally cohabiting partner Rank 2: Children, by equal parts Rank 3: Parents, by equal parts Rank 4: Brothers and sisters, by equal parts Rank 5: Legal beneficiaries, by equal parts When there s no Rank 1, Rank 2 will take it s place; When there s no Rank 2, then Rank 3 will take it s place. In case the first 4 Ranks don t exist then Rank 5 will be applicable and the lump sum will be settled by the insurance company directly, by equal parts, to the legal beneficiaries. What changes because of the legal provision? Rank 5: The legal beneficiaries becomes The heritage

4 What does this mean? Page 4 The new legal condition has an influence on the way that a life insurance lump sum is settled when the first Ranks (the first 4 in the description above) don t exist. The new legal provision will be effective when the Rank The legal beneficiaries (as from 5/3/2014, The heritage ) is of use. In this case, as from March, 5 th 2014, the lump sum will no longer be settled directly, by equal parts, to the legal beneficiaries. It will be settled to The heritage. The heritage is the whole (belongings + debts) that someone leaves behind in case of death. Heritage Law or Testament Heritage Law is applicable on the heritage. The heritage can be rejected or accepted by the beneficiaries. Until March, 5 th 2014 the legal beneficiaries are able to reject the heritage and will still be able to receive the life insurance lump sum from the group insurance (always when the lump sum is settled to the legal beneficiaries because the first Ranks don t exist, or because the legal beneficiaries is the only rank that is stipulated in the group insurance contract). The new legal provision makes sure that the will of the deceased is respected in case a notarial will (testament) was made. The lump sum will be settled to the beneficiaries mentioned in the will. In case there s no will, the lump sum will be settled via the heritage to the legal beneficiaries in function of their degree of blood-relationship and no longer by equal parts. This is logic. It makes sure that a notarial will (testament) or better the will of the deceased is respected. When a testament doesn t exist the lump sum will be settled and divided according to legal heritage law. In both cases difficult discussions between surviving relatives will be avoided by this new provision. However we want to point out the fact that creditors can claim the life insurance lump sum when the lump sum is settled to the heritage. In exceptional cases it can be useful to reject the new legal provision. An example Peter only has a far cousin as a relative, with whom he doesn t have contact, and a nephew that he sees on a regular basis. Peter makes a notarial will by which he leaves all of his

5 belongings to his nephew. The life insurance lump sum of Peter insured via his group insurance is euro. Peter didn t designate a specific beneficiary. Page 5 In case of settlement to the legal beneficiaries by equal parts (until 4/3/2014): The nephew and the far cousin each will receive an equal part of euro because they are the legal beneficiaries. In case of settlement to the heritage (as from 5/3/2014): the nephew will receive the full euro because of the application of the Testament Heritage Law. The far cousin will receive nothing. Do you have the possibility to renounce the application of the legal provision? Yes. You can ask, by means of a written request, to turn down the new legal provision by which the old conditions will remain applicable, and by which the life insurance lump sum will be settled by the insurer, directly, by equal parts to the legal beneficiaries. Moreover it s always possible to designate a specific beneficiary in your group insurance. This can be done by means of a simple written request. Don t forget however that the designated beneficiary will stay the beneficiary until you withdraw that designation. Do you have an individual life insurance policy? The new legal provision also applies on individual life insurance policies. Contact your insurance broker or your insurance company for more information in respect of the stipulations that are applicable on your individual contract.

6 Questions? Page 6 For questions regarding your own personal situation you can contact your HR department. We are at your disposal for any further information at the following coordinates : Contact : Theo Ruyters Contact : Ann Delabie Contact : Sophie Verbruggen [email protected] [email protected] [email protected] Tel : +32 (0) Tel : +32 (0) Tel : +32 (0) Cell : +32 (0) Cell : +32 (0)