The policy owner can, during the term of the policy, change the beneficiary by submitting a written request.
The accumulated debt of the premium not paid on time may be paid collectively.
The policy owner can always transfer all of the rights under his/her policy to anyone he/she chooses.
Can I make any additional payment other than the premium installment which I need to pay under my policy?
You can make additional payments on the policy whenever you want. Each and every premium you pay is taken into account.
If I want to cancel my policy, can I recover the amounts I’ve paid? Under what conditions can I do this?
Once the first three years of the policy are complete in respect of premium and term, the policy owner is entitled to the option of withdrawal. Then the insured can redeem his/her participating savings.
Once the policy owner is entitled to the option of withdrawal, he/she will also be entitled to borrow. The insured may borrow up to 95% of the redemption price. (If there are withholding deductions, this rate may change).
The insured cannot be younger than 18. The upper limit for the age may vary depending on the technical tariff of the policy.
The policy term for life insurances is set as a minimum of 10 years and a maximum of 30 years.
No. The policy owner can assign anybody as the beneficiary, and even choose multiple persons as beneficiaries.
Yes. For life insurances, the policy owner is entitled to purchase multiple policies in his/her name.
I set my policy term in advance, can I change it during the policy term? Can I extend or shorten the term?
During the term of the insurance, the insured can amend the insurance period to a minimum of 10 years and a maximum of 30 years by submitting a written request.
Changes in form of payment can be made at the commencement term on a monthly, 3-monthly, 6-monthly and annual basis.
A policy will cover only one insured.
In foreign exchange policies, at the end of the term or when the insured becomes entitled to withdraw, the repayment is made in TRY to the insured based on the effective selling rate of the central bank on the relevant day.
If premiums are not paid on time, a cease and desist letter will be sent to the insured after a certain period of time, requiring the insured to pay the accumulated premium debt. If the debt is not paid, the policy will be suspended and discontinued if the premium for the first three years and the term is over. Otherwise the policy will be canceled. In each case, if, within 6 months following the cancellation or discontinuation of the policy, the insured makes an application to pay the total debt at once, the policy may be put back into effect.
No freezing is applicable for life insurance policies. Because insurance companies bear the death risk of the insured, it requires that the premium payments are made on time. In other case, the policy is discontinued or canceled by implementing Article 16.
The retirement salary at the end of the term will be fixed, and starting from the second year, there will be a raise according to the dividend rate of the current savings.
In order to purchase a policy, the insured must be at least 18 years old. However, a policy purchased in the name of the guardian may, upon letter of application, be assigned to the child when he/she is 18.
When a wage earner deducts some portion of the premiums which they have paid to insurance companies for themselves, their spouse and/or young children, from the tax amount which they will pay out of their wages it is called “tax deduction”. With this advantage, of which insurance and private pension products are the only investment instruments allowing its use, the amount of tax one pays will decrease and the net profit one earns will increase.
Wage earners and taxpayers who are under the obligation to declare their annual income under annual tax declaration may deduct their insurance premiums paid from the tax assessment under the following conditions.
In order for the wage earner to deduct the individual insurance premiums which they have paid for themselves, their spouse and/or small children, from the gross amount of the wage, it is required that;
- The insurance company is established in Turkey and headquartered in Turkey
- The insurance contract is entered into with companies of such quality
- The payment of the insurance premium is documented with an invoice or receipt issued by the insurance company
With the amendment made to Article 63 of the Income Tax Law with Law No. 4697 published in the Official Gazette dated 10.07.2001; while contributions paid to the private pension system are incorporated in the text of the article, the upper limit of the premium total paid in relation to the insurance policies issued as of 07.10.2001 and which can be made the subject of deduction is set as 5% of the gross wage for the month in which it is paid.
The new form of the text includes a secondary prescription with regard to the upper limit of the premiums which will be made the subject of deduction, provided that the annual total amount of the premiums does not exceed the annual amount of the minimum wage.
In brief, the individual insurance premium which has been paid under the conditions given above and which may be made the subject of deduction in the account of wage earner’s tax assessment;
- Must not exceed 5% of the wage earned for the month in which premiums and fees, which will be made the subject of deduction, are paid
- The annual total of the premiums and fees, which will be made the subject of discount, must not exceed the annual gross amount of the minimum wage
Only under the above prerequisites may it be made the subject of discount in calculation of the tax assessments of the wage-earners.
The wage which will be taken as the basis in establishing the premium amount to be made the subject of discount shall be the sum of the gross amounts of payments of a continuous nature, such as the monthly (wage) paid by the employer to the employee for his/her services, premium, bonus, social benefits and raises. The amounts paid as provision for expenses (whether it is the provision for an actual expense or not) shall not be taken into consideration.
With regard to the individual insurance premiums paid in a calendar year, there is the condition that it shall not exceed the annual amount of minimum wage, and the minimum wage comparison shall be applied on a yearly basis. Therefore, any changes to the minimum wage within the year shall be taken into consideration in calculating the amounts to be deducted.""
If such premiums are paid on behalf of personnel through the agency of an employer, the above-given limitations (5% and minimum wage) shall likewise be applicable.
The gross amount of the premium payments made by the employer on behalf of the personnel within the above limits are required to be added to the gross wage in the personnel’s payroll with regard to the stamp duty. And in the transition to the tax assessment from the gross wage, such amount shall be taken into consideration as a discount. Consequently, only stamp duty will be calculated based on the individual insurance premiums paid by the employer within the above-given limits, and no additional tax income shall be payable.
If there is any premium payment which is in excess of the above-given limits, action will be taken according to the above explanations for the part of the payment which falls within the limits, and the gross amount of the part in excess in terms of stamp duty and income tax is required to be included in the payroll. As a result, income tax will have been paid in addition to the stamp duty based on the part that exceeds the limits.