Life insurance is a contract whereby the insurer undertakes to pay an annuity or a lump sum to a person, the subscriber, for a premium.
This payment is made according to the type of contract purchased. Indeed, in a life insurance policy there are two kinds ofcontracts: a contract of insurance for death and an insurance policy in case of life.
A contract of life insurance is often perceived as a tool of transmission of capital (life insurance in case of death), but it is also a real tool for savings (life insurance in case of life).
Whatever the purpose, a contract of life insurance can be a capital or to build on. You can subscribe to one or more life insurance policies. Beyond the initial investment you can make payments, regular or not, unlimited amount.
So even if it is fiscally more attractive to save for at least eight years, the subscriber may at any time recover its capital.
Defining life: the actors
is the one who signed the life insurance policy and chooses the beneficiaries upon death of the insured. It is important to verify that the subscriber is in the ability to purchase the contract of life insurance. For example a minor must have permission from his parents to be able to buy life insurance.
is the person on which the risk: one whose death triggers the payment of principal or annuity.
if the policyholder lives is usually the beneficiary, in case of death is that which has been designated by the subscriber.
entity whose role is to cover the risk and pay guaranteed benefits if the risk materializes.
Defining life: the life insurance, an investment available.
Contrary to popular belief, the funds invested in life insurance contracts are not “stuck”. Most contracts of life insurance offer two ways to recover all or part of their savings. These purchases and advances.
Total or partial divestment of funds deposited on life insurance policies. They definitely can recover the sums paid and constitute a tax event, since it is the date that is taken into account in calculating taxable capital gains. During a takeover, it is only the part of interest that is subject to tax, not the full amount.
is a sum paid by the insurance, in a short period to avoid the insured to touch his savings and lost tax benefits.
Life insurance beneficiary clause and acceptance
When taking out a life insurance policy, it is requested to appoint one or more beneficiaries upon death. The wording of this clause should certainly not be overlooked.
Designate multiple beneficiaries. In fact if you designate one beneficiary and he dies, the money invested in the life insurance policy will be reinstated in the estate and will no longer enjoy the tax advantages of life insurance.
Not to appoint her husband by name, but “my spouse”. Thus in case of divorce or separation is the spouse at the date of death will be the beneficiary and not the spouse at the date of purchase of life insurance.
Procedure for acceptance and impact on the management of life insurance
The law of 17/12/2007 establishes a procedure for acceptance. This is concluded by an amendment to the contract of life insurance or a deed between the beneficiary, the insurer and the policyholder.
Attention once the recipient has accepted the life insurance contract, the subscriber can not manage his life insurance. It must have the consent of the recipient to change the beneficiary clause, make purchases, trade-offs …
Acceptance is not without consequence. This is why it is not required to inform the person designated as beneficiary. It may even be advisable to mention in the clause that the beneficiary is designated in a document lodged with the notary X. And the payee’s name not be revealed until the death of the insured and it can manage his life insurance policy throughout his life.
Select life insurance
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Here are our selection criteria:
Free of charge on payment
Less than 0.80% management fee on funds in euros
Less than 0.85% management fees on unit-linked
Rate euro fund the last year> 4.1%