Life Insurance

Eligibility Conditions

Active members of Samverk who are fully employable are covered by the insurance upon joining the union.

The insurance ceases when a member is no longer an active member of the union; however, it will always terminate at retirement age.

Members who no longer have an employer, receive benefits from ALS, are on parental leave, or are not working may continue their life insurance under certain conditions and by paying contributions to the union.

Contributions
The employer pays a pension contribution to the Faroese Life Insurance when the salary is transferred. The cost of life insurance is deducted from the pension contribution. According to the agreement, the employer is obligated to pay the pension contribution. See more about pensions.

Life Insurance
The life insurance and pensions for Samverk members are managed by P/F Føroya Lívstrygging. The life insurance provides a lump-sum payout upon death, permanent disability, serious illness, support for the purchase of hearing aids, and a final payout at retirement age.

Payments from this life insurance are made as a lump sum and are tax-free. The requirement for receiving the final payout is that the individual has been a member for a total of 15 years and the last 5 years consecutively before the member turns 67.

A member also has the option to receive the final payout before age 67, but not earlier than age 60. In this case, the payment is 1/8 of the full amount for each year before reaching 67.

Who Receives the Payment

If an insured member dies before retirement age, the insurance amount will be paid to the survivors. The payout is made regardless of whether the member died due to an accident or illness. Life insurance is valid both at work and during leisure time.

The insurance payout upon death will be paid to the next of kin unless another written agreement has been made. The next of kin is the spouse. If there is no spouse, the payout will go to children (legal heirs). If there are no children, the payout will be made according to inheritance law.

If the insurance payout is desired for someone other than the next of kin, such as a cohabitant, this must be notified in writing to Føroya Lívstrygging.

Serious Illness

Insurance for serious illness provides entitlement to benefits, which will be paid if the member is diagnosed with one of the following serious illnesses:

• Malignant cancer
• Heart attack
• Bypass surgery
• Heart valve surgery
• Stroke
• Brain haemorrhage
• Aneurysm in the brain
• Certain benign tumours in the brain or meninges
• Disseminated sclerosis
• ALS (Amyotrophic Lateral Sclerosis)
• Muscle atrophy
• HIV infection resulting from blood transfusion or occupational exposure
• AIDS (Acquired Immunodeficiency Syndrome)
• Kidney failure
• Major organ transplant
• Loss of vision
• Loss of hearing
• Creutzfeldt-Jakob disease
• Parkinson's disease (Paralysis agitans)

The insurance terms specify exactly which medical conditions are included.

Child Insurance includes the following children:

• Biological children
• Adopted children
• Foster children, provided they are registered to live at the same address as the member.

Child insurance will be provided if a child of a member aged between 6 months and 18 years is diagnosed with one of the following listed diseases:

• Malignant cancers
• Meningitis
• Kidney failure
• Loss of vision (the child must be 2 years old)
• Loss of hearing (the child must be 2 years old)
• HIV infection from blood transfusion
• AIDS

If one of the diseases is diagnosed prior to membership, insurance will not be provided if the same illness recurs.

If cancer is diagnosed prior, there is no coverage for cancer diseases, regardless of the type of cancer that recurs. However, it is applicable that if at most one occurrence of cancer is confirmed, and treatment for that illness has ended, and at least 7 years have passed since then, a new cancer will still be covered by the insurance. This is conditioned on no relapse occurring within the previously mentioned time frame.

If the insurance amount is paid out, the same member has no right to further payments in the event of a recurring serious illness.

Other conditions may include, for example, if a member dies within 3 months after a serious illness has been diagnosed, the death payout will be reduced by the same amount that has been paid to the member in connection with the serious illness.

If a member or survivor is entitled to benefits from the insurance, e.g., due to serious illness or disability, this must be reported to Føroya Lívstrygging. Application forms can be found on the website www.liv.fo.