Cancellation of life insurance policies
Things Change After a lot of huffing and puffing, the government’s plan to tax life insurance policies from January 1, 2000 (see Red Tape, December 1999) was overruled in parliament on December 15, 1999. The idea has been shelved — at least for the time being. Many people, however, took out life insurance policies in the weeks before the decision — although we advised you not to — as a result of the pressure exerted by life insurance companies to “buy before it is too late.” If you took out a policy, and now wish you hadn’t, you may be able to cancel it on the grounds of being “insufficiently informed” (this right is independent of the tax-threat issue). The Bavarian Consumers’ Association (Verbraucherzentrale Bayern e.V.) has prepared a special letter to send to insurance companies, which can be requested by fax (01905) 553110-111; (DM 1,21 per minute) or collected (cost DM 1) from their office at Mozartstrasse 9, 80336, Munich. <<< IM