In association with Menorah Mivtachim
• When leaving a place of work and/or during a temporary period of non-work, payments to the pension fund (or other pension savings arrangement) are stopped.
• If you didn't know - the pension fund is not just pension savings! It also provides insurance coverage in cases of disability (loss of work capacity) or, God forbid, death.
• This is exactly where it is important that you familiarize yourself with the concept of "risk arrangement".
A risk arrangement is a reduced payment arrangement to the pension fund for the period when current deposits are stopped. His job is to maintain our insurance coverage when we are "between jobs" – and thus also prevent our rights from being violated.
• A pension fund establishes, by default, a period of 5 months during which insurance coverage is maintained even when no deposits are made. This period is called an "insurance extension" (referring to the existing insurance in the pension fund), during which insurance premiums are automatically collected from the accrual in pension savings.
• The crash arrangement must be made no later than the end of the insurance extension period, usually up to 5 months from the date of cessation of payments to the pension fund, and can be applied for a period of up to 24 months from the last deposit.
Didn't you make the temporary crash arrangement? These are the possible consequences (but not all):
• The allowance paid to your loved ones in the event of your passing may be significantly lower and based solely on the funds you accumulated in the pension fund, i.e. without insurance coverage.
• Loss of eligibility period and lack of insurance coverage in case of disability or illness that will occur after the cessation of the insurance extension until the date of renewal of deposits (even if a claim is filed after the date of renewal of deposits).
• You may be asked to fill out a new health declaration when deposits are renewed. This may mean acceptance to the pension fund under restrictive conditions and in some cases even refusal of admission to the fund.
Have you left or changed jobs and are interested in putting your pension savings in order? Contact the experts of Menora Mivtachim, the largest and most stable pension fund in Israel, click here and we will take together with you your future savings to the maximum:
For more details click here >>>
** It should be clarified that Menora Mivtachim Pension Ltd. is a managing company of the pension funds Menora Mivtachim Pension and Menora Mivtachim Complementary Pension. The foregoing is information relating only to a pension fund (and not to other products), and does not constitute pension advice or marketing tailored to the client's needs and is not intended to replace advice or marketing by an authorized license holder and/or exercise of discretion by the fellow.
It is recommended to consult with an appropriate licensee.
In association with Menorah Mivtachim