Increasing financial vulnerability
A number of social trends and developments in legislation and regulations are leading to increasing financial vulnerability in the event of death. For example, we see an increasing number of self-employed people and employees without an (adequate) pension scheme, and therefore without a survivor's provision. In addition, we have seen housing costs rise sharply in recent years, both for homeowners and tenants. Nevertheless, the number of term life insurance policies taken out is not increasing.
Not being able to cope with the financial consequences after death is a real risk for these groups. A loss of income due to the loss of a breadwinner can lead to insufficient opportunities to pay off the mortgage or pay the rent, resulting in forced relocation. Or a lifestyle adjustment.
The Association believes it is important to combat the financial vulnerability of consumers wherever possible. Partly because this entails major social costs. The main purpose of term life insurance is to cushion the negative financial consequences of a death so that the next of kin can continue their lives in the best possible way. This social role of the ORV must be strengthened.