LR: Life insurance and inflation


The so-called Fir 2 law allows the government to suspend redemptions on life insurance contracts. (© DR)

With inflation back, secure your life insurance policies.

Features of life insurance française:

life insurance contracts under French law have very curious characteristics.

Three in particular are worth mentioning:

1 – the entrants in what is commonly referred to as the “euro fund” of the insurance company are at the book value of the fund’s assets and not at their market value, which is nevertheless a rule universally respected;

2 – the capital represented by euro funds benefits from a full and complete guarantee, but still the insurance company must have the necessary resources to meet, if necessary, its commitments;

3 – Finally, it should be remembered that the policyholder of a life insurance policy does not own the assets housed in the contract – euro funds and units of account – but only the holder of a claim on the insurance company. a receivable of an amount equal to the value of the assets, which are, in turn, the property of the company.

Consequences of these characteristics

These characteristics have the following consequences:

1 – if the life insurance company goes bankrupt, the holder of the life insurance contract is an unsecured creditor like the others and the insurance guarantee fund only covers it up to 70,000

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