The Supervisor of Insurance in the Finance Ministry, Yadin Antebi, has decided not to intervene in the structure of the life insurance component of policies known as "manager's insurance."
The treasury had examined such intervention, but opted against the move. A report on the matter appeared yesterday in TheMarker.
The treasury considered requiring insurance companies issuing such policies to follow the same rules that pension funds do. In practice, policy holders would be forced to leave the money only to immediate family: widows and orphans - and not allowed to name other beneficiaries.
In addition, a requirement that the sum be paid out as an annuity was also raised, instead of as a lump sum payment.
The Finance Ministry responded: "The issue of beneficiaries for insurance policies was never discussed or studied, and the supervisor does not intend to act to set new procedures in the matter."
Want to enjoy 'Zen' reading - with no ads and just the article? Subscribe todaySubscribe now