This might be worth as much as 100 shekels / month to many here. I mentioned it earlier but it was buried among other information, and might have been missed by those lost in the complexity of pensions.
Pension funds (of the Keren Pensia variety) automatically deduct insurance payments for:
- disability;
- In the event of your death, paying your dependents:
- spouse
- children
- your parents (“הורה נתמך”), if you don’t have the above.
But if you are single and without children and your parents are not reliant on you, it is just a waste of money to pay these sums.
Again, the default is for them to deduct these payments. You have to explicitly tell them to waive it if you don’t want it. If this is your decision, you need to ensure that you have waived on this. Look on your pension sign-up form for ויתור על ביטוח שארים. If it’s not there (or if you can’t find your sign-up form), email your pension agent or pension management company (whichever you have the relationship with) and tell them you want to do this.
You also have to renew this every two years otherwise the insurance payments are automatically reinstated.
My new colleague met with the pension agent earlier this week and after chatting with him I found that the agent hadn’t bothered to mention this to him. He found on the form that the cost of the insurance was 89 shekels per month. That’s worth 120,000 shekels at retirement assuming he remains single for the next few years! In general I’ve found that a lot of agents neglect to mention this important matter, leaving many single people paying extra insurance payments for coverage they do not need.
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