Just married? Don't forget to update your Pension and insurance

A Pension fund is not just savings for retirement. It usually also includes survivor insurance, intended to provide a monthly pensionThe monthly amount paid to the saver in retirement, calculated by dividing the amount accumulated by a "conversion factor." to family members in the event of death.

In a Pension fund, a spouse and children may be entitled to a survivor's pensionA monthly payment made to a person after retirement from work in order to help maintain their standard of living. under the fund's regulations. Therefore, after getting married, it is advisable to log in to the personal area and check that your family status and details are up to date.

A Pension fund is not just a sleepy savings account for retirement at age 67. It includes two critical insurance components: disability insurance and survivor insurance (which provides a monthly pension to family members in the event of the insured's death).

When you were single, without a spouse or children, you likely made a smart and financially sound move: you submitted a request to the Pension fund to waive survivor insurance. Since you had no dependents, this waiver saved you the cost of the insurance PremiumThe periodic payment made to the insurance company. and directed more money straight to the retirement savingsA general term for long-term savings products (pension fund, managers’ insurance, or provident fund) intended for retirement. component.

But here is the catch: this waiver expires automatically or requires renewal, and once you get married, the rules of the game change completely.

Many investors and savers are convinced that if they listed their spouse on a certain form, everything is in order. To avoid serious legal and financial problems in the future, it is essential to understand the vast difference between these two concepts:

In a comprehensive Pension fund (survivors): the regulations override anything you wrote. Even if you listed your parents on the old form, once you have an official spouse, the monthly pension will go to them by law.

With Life insuranceProvides for payment of a sum of money to beneficiaries in the event of the insured person’s death., Bituach Menahalim (ביטוח מנהלים)A savings product based on an individual contract between the saver and the insurance company, combining a savings component and insurance coverage., provident funds, and advanced training funds (beneficiaries): there are no family regulations here. Whoever's name appears on the digital form in the personal area is the one who will receive the lump-sum payment. If you have not updated the beneficiaries since you were 21, the money may go to your parents, siblings, or, heaven forbid, former partners.

Before marriage, a Life insurance policy (term life) was probably not at the top of your mind, because no one relied on your salary to survive. Now, the financial picture is changing:

• You have jointly signed a lease agreement or are planning to take out a joint MortgageA long-term loan for purchasing a property, with the property serving as collateral for the bank..
• Your household's standard of living relies on both salaries.
• Children may also join the family unit in the near future.

Therefore, it is worth examining two questions:

Who is listed as the beneficiary?

And does the insurance amount even suit your life today?

In Life insurance, the listed beneficiaries can be very important, so when changing them, it is advisable to update them directly with the entity managing the policy and not assume that it will “work itself out” in the future.

Young couples tend to insure only the spouse who earns the higher salary. This is a serious mistake. Even if one spouse earns less (or chooses in the future to stay home and care for the children), their loss has enormous financial significance. The services they provide to the household—household management, child care, and logistics—are worth real money, and if they are no longer there, the surviving spouse will have to pay for them out of pocket and reduce their working hours.

Therefore, the review should go in both directions:

Even if you took the initiative and prepared a legal will with a lawyer, you should not assume that it automatically replaces the need to update beneficiaries and survivors in every financial product.

The relationship between a will, beneficiaries, and survivors is complex and may vary among different types of products. For example, Section 147 of the Inheritance Law stipulates that insurance proceeds and provident funds are not part of the estate unless otherwise provided.

Therefore, the safest and simplest approach is not to leave contradictions: if you have decided who you want to receive the money, update the products themselves in the personal area and, if necessary, also adjust the will.

Insurance companies and agencies take advantage of weddings to market expensive insurance packages disguised as “family responsibility.” Do not be tempted to purchase new Insurance policies before mapping out your existing situation.

Before adding another monthly charge, check what you already have:

• A Pension fund with survivor coverage.
• Existing Life insurance.
• Insurance through your workplace.
• Mortgage Life insuranceA combination of life insurance and building insurance required by the bank to secure repayment of the mortgage., if applicable.
• Old policies you may have already forgotten about.

First step toward saving: visit the government "Har HaBituach" website together to view, in one place, the insurance policies registered in your names and check for duplicate or unnecessary insurance coverageThe list of events and damages for which the insured is entitled to compensation..

1. Kol Zchut — Survivors' insurance under Pension insurance — A clear explanation of who is considered a survivor in a Pension fund, the difference from Bituach Menahalim (ביטוח מנהלים), and what happens when marital status changes.
2. Kol Zchut — Waiver of survivors' insurance under Pension insurance — Especially important information for anyone who waived coverage while single and later married, including the importance of addressing the change quickly.
3. Capital Market Authority — Har HaBituach — A government service that consolidates the insurance products registered in your name and helps you review your insurance portfolio and Duplicate insurance coverage.
4. Ministry of Finance — Everything you need to know about death and Pension for peace of mind — Government information on survivors, beneficiaries, and funds in Pension products.