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An insurer has requested clarification on whether there is an obligation to refund premiums that exceed financial limits in individual long-term care insurance policies. The Directorate General for Insurance and Pension Funds (DGT) has ruled that, by regulatory reference, the regime applicable to pension plans applies, which mandates the withdrawal of any excess amounts.
Insurance companies providing long-term care insurance must ensure that premiums do not exceed established financial limits and must refund any surplus to comply with the regulations applicable to pension plans.
The tax team reviews your specific situation.
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