operation and types of contract

Life insurance is known to be one of the favorite investments of French savers. As of June 2022, its management fees will need to be more transparent.

What are the different types of life insurance policy?

There are several types of life insurance policy. The best one is the one that best meets the purpose of the subscriber. If the latter seeks to set aside and make capital payable, from which he may benefit several years later, he can select a life insurance policy on his own life. If the goal is to provide financial support to the spouse if the spouse survives when the policyholder dies, then the life insurance policy is the risk of death. the best. There is a third type of contract: the life and death contract, halfway between the first two. It allows you to build savings over time. If the policyholder is alive at the end of the contract, the insurer must pay him a principal or an annuity. If he dies before the end of the contract, the subscriber must pay a principal or annuity to the designated beneficiaries. The challenge is to find the right one the best ratio between premiums paid, fees charged by the issuer of the contract and services provided.

How does life insurance work?

To take out a life insurance policy, you need to find the right person, usually an insurance company or a bank. When signing this type of contract, the insurer, the insured and the potential beneficiary have obligations to fulfill. Le premier must inform the client’s son of all the ways, obligations and risks related to the subscription. For its part, the insured must provide information regarding in particular his state of health. Finally, if the insured and the beneficiary are two different persons, the beneficiary must give his consent to be the recipient of the funds in the case of a life insurance contract or a life and death contract.

As of June 1, 2022, insurers will be required to post on their website different management fees: entry fees, annual fees (depending on the type of funds and management …), and one-off (arbitration, exit, transfer to another contract …). Ces frais will have to be presented in a harmonized format between all the actors, so that the subscribers can easily compare the different offers.

What is the minimum amount of life insurance?

There is no legal minimum amount for life insurance. Each insurer is free to set the amount of contributions paid by the policyholder, also known as premiums. Payment can be made in three different ways:

  • Fixed periodic premiums : the amount and periodicity are indicated in the contract
  • Pfree-paying rhymes : the subscriber freely decides the amount and time of its payments, but the contract sets a minimum amount of premiums
  • Unique prime : a single, more substantial payment is made when the contract is signed.

What is a life insurance plan?

Life insurance is one of the favorite investments of French savers. Its attractive rate and ease of use – life insurance can be linked to the death or life of its policyholder and / or beneficiary – make it an interesting and widely used savings product. Life insurance is actually halfway between the savings product and the insurance product. The policyholder pays contributions to the insurer who is required to pay a sum of money in the form of annuity or capital to a beneficiary (himself or another person) when an event related to the life of the policyholder occurs.

Redemption of a life insurance contract

Funds placed on a life insurance contract, and remunerated at a given rate, are blocked until the contract is released. However, if the policyholder is short of liquidity, he may redeem all or part of the sums set aside under the life insurance policy. The amount of osier is indicated in the contract signed by the subscriber, and is part of the information that the insurer must put forward.

Termination of a life insurance contract

Racheter la totalité des we are placed on a life insurance contract is synonymous with dissolution of the agreement. The other possibility is to complete the contract and open it, in the form of a life annuity or capital as provided when signing the contract. The insurer then pays the capitalized sum, and the dissolution it is effective. Finally, there is a third possibility: there is dissolution when a life insurance policy is left in disinheritance, which means it is not funded by premiums or claimed by its holder.

Life insurance policy and estate

The problem of the series and that of the place care holds a life insurance contract in this process arise only in the case where the life insurance is taken on the risk of death. Amounts received by the beneficiary on the death of the subscriber are not considered to be part of the series, and are therefore exempt from fees. However, exceptions exist if the contract was entered into after 20 November 1991, or if the sums paid to the beneficiary are generated by premiums paid to the contract after 13 October 1998.

Taxation of a life insurance contract

The first parameter that influences the fiscality it is at term holding the contract, without dissolution egg osier anticipate. Clearly, if the insured does not touch his contract – except possibly to supply it – for eight years, the amount he will recover at the time of the contract will be reinstated in his income, and therefore subject to tax. corresponding to 7.5%. to fiscality n’entre en jeu que si la somme exceeds 4,600 euros for a single person, and 9,200 euros for a couple. And a osier is carried out before the expiry of the term des huit ans, the refund may also be made in taxable income, or leave room for two levies for the 35% liberators for a osier between the year of subscription and the fourth year, or 15% between the fourth and eighth year. In addition, the social security contributions apply at the rate of 15.5% on the life insurance product.

Life insurance contract after 70 years

In addition to the term of detention, the age of the subscriber comes into play when the fiscality of life insurance. Thus, a product of less than EUR 30 500 may be exempt from customs duties series and this sum comes from premiums paid to the contract after the 70th anniversary of its holder.

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