Life insurance FAQ

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life-insurance-FAQ

Insurance FAQ

What are the risks excluded from life insurance in case of death?

Checked may 19, 2016 – Directorate of legal and administrative information (Prime Minister)

The 2 following risks are excluded and make insurance without effect:

  • Suicide of the insured during the 1st year of the contract
  • Beneficiary condemned for having voluntarily given death to the insured or the policyholder (in general, the Subscriber is also the insured). However, if other people have been designated as beneficiaries, they can collect the capital provided for in the contract.

Can I change the beneficiary of a life insurance contract?

Checked may 19, 2016 – Directorate of legal and administrative information (Prime Minister)

It depends on if the person designated as beneficiary formally accepted his nomination.

The beneficiary clause allows you to designate the person or persons who will receive a capital upon the death of the insured (generally, the Subscriber is also the insured).

The policyholder may change the beneficiary at any time. It informs the insurer by sending a simple letter.

At reception, the insurer establishes an amendment changing the beneficiary clause in the original contract.

A formally accepted his nomination.

The Subscriber cannot change the beneficiary.

Acceptance of the beneficiary is irrevocable if it was made in one of the 2 following procedures:

  • Tripartite agreement between Subscriber (which is usually also the insured), insurer, and beneficiary accepting
  • Agreement between Subscriber and beneficiary accepting, notified to the insurer

divorce does not result in the revocation of the husband (is) accepting beneficiary.

Must be reported to tax income from a life insurance contract?

Checked 09 March 2016 – Directorate of legal and administrative information (Prime Minister)

Income tax: statement revenues in 2015 2016

25 Apr. 2016 – Directorate of legal and administrative information (Prime Minister)

The income tax rules are subject to change (finance Act 2017 and amending finance laws).

The information contained in this page are up to date for the declaration of revenues in 2015 2016.

This page will be changed in 2017 for the return of income of 2016.

Depends on the date of subscription of the contract and the duration of the contract at the time of the withdrawal.

before 83

Revenues are exempt.

To complete your tax return, you can consult the following documents:

If a pre-filled amount is incorrect, you must fix or complete it.

Note:

income from a life insurance contract are subject to social contributions (CSG, CRDS)

Contract signed between 1983 and 1997 (25 September)

Revenues are totally or partially exempt according to the date of payments.

Your insurer is responsible for calculating the taxable amount of redemptions.

Moreover, regardless of the date and duration of the contract, the life insurance products are exempt from income tax when the end of the contract resulted from one of the following situations:

  • Dismissal
  • The early retirement
  • Disability (2nd or 3rd category)
  • Liquidation

These situations can be the Subscriber of the contract or his spouse/partner of Pacs.

To complete your tax return, you can consult the following documents:

If a pre-filled amount is incorrect, you must fix or complete it.

Note:

income from a life insurance contract are subject to social contributions (CSG, CRDS)

Contract signed after September 25, 1997

Taxation of income of insurance from September 26, 1997
Duration of the contract at the time of the withdrawal Taxation of income of the life insurance contract
Less than 4 years Tax at progressive rates of tax on the income, or option, to the 35% withholding.
Between 4 and 8 years Tax at progressive rates of tax on the income, or option, to withholding of 15%.
More than 8 years General case:

Annual allowance of €4 600 (€9 200 for a couple).

The surplus is built to the scale of the income tax, or, if you chose the levy tax, imposed at the rate of 7.5%.

If you have chosen sampling, the abatement is rendered to you as tax credit.

Contracts equity funds:

Exemption

Moreover, regardless of the date and duration of the contract, the life insurance products are exempt from income tax when the end of the contract resulted from one of the following situations:

  • Dismissal
  • The early retirement
  • Disability (2nd or 3rd category)
  • Liquidation

These situations can be the Subscriber of the contract or his spouse/partner of Pacs.

To complete your tax return, you can consult the following documents:

If a pre-filled amount is incorrect, you must fix or complete it.

  Note:

income from a life insurance contract are subject to social contributions (CSG, CRDS)

Life insurance: what does say in a medical questionnaire?

life insurance medical questionnaire

Checked may 19, 2016 – Directorate of legal and administrative information (Prime Minister)

You must answer all the questions as they are asked.

In the light of your responses, the insurer may ask you to perform medical examinations. They will be the subject of a confidential medical report by the medical officer of the insurer.

According to your reported medical risk, the insurer may make the following decisions:

  • Without special condition
  • Ensure with exclusions related to the consequences of disease or events
  • Ensure with a surcharge
  • Refuse to insure

A false statement on your part if your bad faith is established, cause the nullity of the contract. The insurer then pays back you capital into account on the contract.

In the event of omission or misrepresentation, negligence or mistake, 2 situations are:

  • Before disaster. The insurer may terminate the contract or maintain it with application of an increase in premium.
  • Disaster. The insurer may apply a reduction of capital to be paid in proportion to premiums owed would be paid.

What is the legal interest?

Checked June 27, 2016 – Directorate of legal and administrative information (Prime Minister)

The legal interest is an amount of money owed to the creditor in the event of late payment by the debtor. The rate of legal interest is fixed every six months by order of the Minister responsible for the economy.

It is used to calculate the following:

  • interest on the amounts to be paid in the event of delay of payment ordered by a court,
  • interest on a loan, if the contract does not provide the percentage rate (APR) of the loan.

Legal interest should not be confused with the contractual interest or the escalation clause, which are distinct elements of legal interest.

Interest due by the debtor are simple when they are only calculated on the capital. They apply to amounts owed for less than 1 year.

Interest is capitalized (or compound) when they are added to the initial capital to produce their own interests. This funding may be provided for in the contract or requested from the judge. They can be used for more than 1 year loans.

Legal rate of interest
Year Rate
2016 (2nd semester) 4.35% if the creditor is an individual

0.93% for other creditors (Professional, etc.)

2016 (1st half) 4.54% if the creditor is an individual

1.01% for other creditors (Professional, etc.)

2015 (2nd semester) 4.29% if the creditor is an individual

0.99% for other creditors (Professional, etc.)

2015 (1st half) 4.06% if the creditor is an individual

0.93% for other creditors (Professional, etc.)

2014 0.04%
2013 0.04%
2012 0.71%
2011 0.38%

References

More information?

Insurance bank savings service info

To inquire

Information about procedures and contractual relations in the field of insurance, Bank and savings

By phone

0 811 901 801

Monday to Friday from 8 h to 18 h.

Purple or Plus number: cost of a call to a landline number + paid service, from a fixed phone or mobile

To know the rate, listen to the message at the start of call

By mail

ABE Service Info

61 Street Taitbout

75436 Paris Cedex 09

By e-mail

Via the contact form

To inquire

Information about procedures and contractual relations in the field of insurance, Bank and savings

By phone

0 811 901 801

Monday to Friday from 8 h to 18 h.

Purple or Plus number: cost of a call to a landline number + paid service, from a fixed phone or mobile

To know the rate, listen to the message at the start of call

By mail

ABE Service Info

61 Street Taitbout

75436 Paris Cedex 09

By e-mail

Via the contact form

Even more

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