What is life insurance?
Life insurance is the collective term for all insurance products that concern the life and death of a person.
How does it work?
The insurer pays out a set sum to the beneficiary on a date specified in advance. That date can for example be the day on which the insured retires.
The insurer pays out a set sum to a beneficiary upon the death of the insured. This is referred to as ‘death cover’.
A specific type of death cover is loan protection insurance. This type of insurance pays out all or part of the amount outstanding on a loan in the case of the insured’s death.
What rules apply to life insurance?
Life insurance must comply with the provisions of the insurance laws and legislation, especially as regards the mutual obligations of the insurer and the policyholder. The insurer will charge a previously agreed amount as a condition for the payment to the beneficiary.
Certain rules also apply to the distribution of certain life insurance products as regards the information that must be provided to the client. Advertising for these products has to meet certain legal requirements.
What is the FSMA’s role?
The FSMA supervises the legislation regarding the provision of information and advertising for certain life insurance products. Once the information and advertisements are used, the FSMA can examine whether these comply with the legal requirements.
The FSMA also supervises compliance with the insurance law and legislation.
Where can you get more information?