Sorry for the vague title, in case location matters this is done in Europe, Austria. And all of this was handled by the same agent. I will first write down what this is about and then ask the questions.
So, 8 years ago I opted for insurance, costing 70€ per month, (I don't know if the correct term is life insurance but it covers, broken bones, death, staying in the hospital etc.).
5 years ago I got a new job that involved a lot of traveling around Europe and I opted for a new insurance which covered all of Europe for 150€ (this is actually 2 combined insurances of some kind).
Now both of those insurances (the old 70€ and new 150€) are supposedly made with a savings built in (don't know the correct term), so that after x years (I think the lowest being 10) I can get them payed out and get all (or more) of the money back that I paid in.
Now the only way to cancel the first insurance (or put it in sleep) was for me to essentially tell them I don't have any money anymore and I can't pay it, which as it seems worked, otherwise I would need to paying till the 10 year mark.
My agent told me that that money isn't lost but will be moved to the new insurance or I just need to wait till the 10 year mark for it to be paid out (I am sorry it was a long time ago and I don't remember exactly).
Now 2 months ago, I changed banks and my agent told me I should make a new "contract" of sorts over a 3rd party where I pay them and they pay my insurer (this is from my understanding) but for this I needed to open a saving account where I pay another 150€ per month. He told me that at the end, I will get back: the 150€ in the savings account per month x interest + the sum value of everything I was paying into the insurance.
I know several people who worked with this agent and got all of their money out as promised, and I myself broke my leg and arm (2 different occasions) as well as some other injuries from another separate car crash and got a really hefty sum paid out as insurance. I am mentioning this to say that I believe that my agent is truthful.
However, I just need to be doubly sure and hence the questions;
- Is it ok for me to put the old insurance into "sleep" mode because I said I don't have money to pay for it?
- Will the first insurance be paid out or transferred as my agent promised?
- If my second insurance would pay out like the other one why would I need to start another savings account when I switched to the 3rd party "provider"?
In the end the money is not really a issue for me and I got paid out much more already then I would spend on this insurance if I would be paying it for 20 years to come. But I still don't understand those processes at all and would like to know whats happening.