L´assurance life, the first placement of the french with just title

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Life insurance represents the preferred placement of the French, allowing to build a capital in the long term: to retire or to prepare a project.

This financial support has many advantages as a simplified tax system, a secure transmission of capital or the payment of a pension, for example.

Discover this guide everything that there is to know about life insurance, and I can tell you that there is content!

An account of boursorama, with a life insurance (in option)

Sommaire

The base

Life insurance is an investment especially suitable for the constitution and the promotion of a heritage. Indeed, its features can help meet targets financial, but also family and estate.
The vocation of origin of life insurance is to guarantee the payment of a certain amount of money (capital or annuity) when an event related to the insured occurs: his death or, more surprisingly, survival

 

 

1 435 billion, it is the set of the placed amounts in life insurance to 31 July 2013. It is the preferred placement of the French, accessible, flexible, tax-interesting.

Life insurance can also grow funds while pursuing a long-term goal: retirement, a real estate investment, etc. It also offers significant tax benefits in succession.

Life insurance is a long-term investment that can reconcile diversification of savings and specific fiscal framework.
Life insurance is a contract of savings which can be fed periodically. As its name suggests, it is a personal insurance which guarantees the payment of savings paid into the contract (in the form of capital or annuity) to a beneficiary. That if there is an event at the contract holder: death or accident. This is the classic mechanism of insurance known as "cause of death".

But life insurance also represents an object of savings, insurance for "cause of life": in the absence of damage, payments on the contract are donated to a deadline, mainly on the day of retirement, to the contract holder. " Life insurance becomes an object of savings and retirement.




I would like to clarify that we must distinguish the death insurance known as 'insurance' which pays a sum or pension in case of death and life (also referred to as life insurance) insurance, which pays a capital or a pension in case of life at maturity of the contract (if deaths before nothing is due to the estate).

1 435 billion, it is the set of the placed amounts in life insurance to 31 July 2013. It is the preferred placement of the French, accessible, flexible, tax-interesting.

What we call "life insurance" in France is a life insurance contract (capital paid in case of death before the term of the contract) with "premiums", i.e. the repayment of the premiums paid during the term of the contract in case of life of the insured at the end of the contract, and possibly together with technical interest provided for in the contract. This allows to present a quasi-produit of savings, with the tax benefits of insurance.

If necessary, it is also possible to buy out his contract before the deadline.

The contract

 

The insurance contract is a contract by which the insurer, in Exchange for a contribution towards the Subscriber to pay benefits in the form of capital or annuities, at the time of the risk insured in case of life or death.

Life insurance is a contract whereby the insurer undertakes, in return for the payment of premiums, to pay an annuity or a capital to one or more specified persons.

According to the purpose, you have the choice, as underwriter, between 3 categories of contracts: in the event of life, in the event of death, or a mixed contract, life and death.

It is very important to distinguish 3 types of contract.

The insurer undertakes to pay a capital or an annuity to the insured if he is alive at the end of the contract. This is the contract of investment type.

To build up savings. This type of contract provides for the payment of a capital to the insured if he was still alive at the end of the contract. They may be associated with a "premiums" allowing rights holders to recover the premiums paid in the event of death of the insured before the term.

You freely determine the duration of the contract. Tax benefits are granted after 8 years.

 

The insurer then agrees to pay a capital or an annuity to the named beneficiaries upon the death of the insured during the term of the contract, or his successors. Contracts of insurance in case of death, include the following:

 

Temporary insurance

Death risk is covered for the duration of the contract or until a date set in the contract.

Its purpose is the payment to the beneficiary of a capital or an annuity if the insured dies during the term of the contract, and against payment of a single premium or of regular premiums.

The insurer pays a capital or an annuity only if the insured dies before a certain date, for example before her children have completed their education. This contract is used to cover your family if you die and so it has more salary…

Whole life insurance

Death risk is covered no date limit.

This means that the insurer pays a capital or an annuity to the beneficiary regardless of the date of death of the insured.

She provides for the payment of a capital or an annuity predetermined beneficiary regardless of the date of death of the insured person against the payment of a single premium or of regular premiums.

More rare, it the same function.

Contract funeral

The funeral contract guarantees to the beneficiary of the contract pays a lump sum to Fund (the burial) funeral of the deceased insured. Some contracts may provide the Organization of funeral benefits.

Funeral insurance contracts to prepare the funeral in a serene way:

  • By offloading the relatives of their financing: a capital chosen in advance will be paid to the person who paid for the funeral or directly funeral operator.
  • Avoiding the concerns of the Organization families.
  • Facilitating administrative procedures to relatives after the funeral.

This contract is still totally different, it serves to pay the burial, because otherwise you leave a debt to your child who will be in addition to the sadness, the paperwork and your debts (the cost of a funeral in France ranges from 1 300 to €6 101, so count on average € 3 098 excluding Vault. CF here)

Example of the benefits of a contract:

  • unload your loved ones of their financing: a capital chosen in advance will be paid to the person who paid the invoice of your funeral or directly funeral operator.
  • your family avoid the worries of the Organization: you can also define precisely the terms of your funeral.
  • facilitate administrative procedures to your loved ones after the funeral, through a telephone support service.

Contract life and death

Life and death (joint insurance) contract covers both the life and the death risk.

The insurer undertakes to pay a capital or an annuity:

  • Either to the insured if it is alive at the date specified in the contract
  • Either to the intended beneficiary if the insured dies before the date specified in the contract

The conditions to be fulfilled

Life insurance contracts are offered by multiple agencies such as banks, insurance companies, insurance brokers… But also many professionals on the Internet. The subscription requires a first payment under conditions for the policyholder, the insured and the insurer.

The insurer shall fulfil the following obligations:

  • Inform you and advise you. The insurer collects about your family and financial profile in order to offer you a contract adapted to your situation and your expectations.
  • Submit you an application for insurance (or draft contract) including a draft letter of renunciation. This document stipulates the object of the contract, the obligations of each party, the terms of designation of beneficiary charges, and if necessary the possibility of redemption or transfer.
  • Submit you an information note summarising the essential features of the contract. This briefing is not compulsory for contracts with a value of redemption or transfer. In this case, a box should appear on the 1st page of the contract, clearly indicating its essential features.

As a Subscriber, you must meet the following conditions:

  • First of all, the Subscriber must have the legal capacity to have such a contract, forcing major under guardianship and minors to use a third party to obtain a life insurance policy.
  • Respect the age limits imposed by the insurer
  • Undertake to pay the premiums referred to in the contract, payment of departure in the following payments, that they be specified in amount and frequency or free.
  • Complete a thorough and sincere the medical questionnaire given by the insurer

Namely:

Several people can sign a contract of life insurance together (joint application).

The insured is the person whose death or survival is guaranteed by the contract:

  • Either you are both the underwriter and the insured
  • Either you sign up a contract for the death of another person.

In the 2nd case, the insured is protected by the 2 following provisions:

  • The insured must provide written consent
  • The insured must have at least 12 years (until his majority, the written agreement of the parents or guardian is required).

To avoid abuse, strict conditions have been implemented to protect the insured on life. First of all, the consent of the insured is a prerequisite.

Moreover, children over 12 years are protected. Indeed, they must give their agreement, with written consent of their representative legal, except in the case of an emancipated minor who can subscribe only his contract from 16 years

It is impossible to implement insurance for an adult ward or a minor under 12 years.

The insurer, him, is bound by a duty of Council. It must notably fulfil obligations of information and at the top of the insurance application must be a comprehensive box describing including:

  • The nature of the contract.
  • The proposed guarantees and possible participation in the profits.
  • The terms of the beneficiary designation.
  • The costs and benefits.
  • The recommended duration of the contract.
  • The existence or not of a possibility of redemption or transfer.

The insurer undertakes to inquire at best and offer the contract of life insurance the most suited to your profile.

Finally, in addition to the information note containing the terms of the contract and the insurance application, he must join waiver allowing him to change your mind within 30 days following the signing of the contract.

Withdrawal

Approach

Once the contract is signed, you have 30 calendar days to reverse your decision, by registered letter. The insurer will return in this case all payments on the contract within 30 days following receipt of the waiver. Thereafter, amounts produce interest at the legal rate of 50% for the first 2 months, then beyond this period, double the legal rate, the insurer is penalized not you make your money.

This 30 day period may be extended if the information and mandatory documents have not delivered you.

This period shall run from the date on which you were informed of the conclusion of the contract.

This 30 day period may be extended if the information and mandatory documents have not delivered you.

Document template

Request to waive a contract of life insurance

National Institute of consumption (INC)

  Attention:

For contracts signed since March 1, 2006, the extension of the deadline to withdraw from the contract is limited in time. You must exercise this option no later than within 8 years from the conclusion of the contract.

Consequences of the waiver

The insurer returns you for payments made on the contract within 30 days following receipt of the waiver.

After this period, the sums produce interest at the legal rate plus 50% during the first 2 months, beyond this period, double the rate legal.

wholesale the insurer is penalized not you make your money.

The beneficiary clause

The beneficiary clause to designate persons who, as applicable, will receive the capital or annuity after the death of the insured.

Designation by the Subscriber

As a Subscriber, you can designate one or more beneficiaries, 3 following ways, according to the procedure indicated in your contract:

  • By reference in the contract of insurance
  • By testament holographic or authentic
  • By simple letter to the insurer

Throughout the contract, you can modify, subject to conditions, the person designated as beneficiaries.

  Attention:

If you have subscribed a contract not for yourself, but for the death of another person, its agreement is necessary concerning the designation of the beneficiary.

The beneficiary may express its approval of this designation in order to give an irrevocable character.

However, it may take this step at the end of a period of 30 days from the conclusion of the contract.

Support:

There are two categories d´assurances life. The monetary units and one unit of account (and mixed).

Contracts of life insurance in euros

These are life insurance contracts for those who want to invest without taking risk. The main asset of contracts in euros is, indeed, the safety of the investment. The main problem is the poor performance. These life insurance contracts are predominantly invested on risk-free investments (mainly d´etats bonds) they receive a double guarantee:

  • the capital invested is guaranteed: at maturity, there will be increased interest capitalized;
  • a ratchet effect, which limits the risks by allowing the Subscriber to keep permanently the annual interest credited on his contract. These interests are in addition to the amount of savings to produce their turn of interests. The insurer may also provide a guaranteed minimum rate.

That is, the contract guarantees are of monetary amounts and which cases the risk borne by the insurer will be rate risk.

Contract in units of account

That is, the contract guarantees are securities (stocks, bonds…) knowing that the risk of loss will be borne by the insured.

According to the purpose, you have the choice, as subscriber, between 3 categories of contracts: in case of life, death, or a mixed contract, life and death.

With a contract in units of account, you choose what types of media you will put your savings. Each unit of account is a type of asset investment support.
Almost all of the units of account contracts are contracts 'multi-media' combining:

  • a Fund in euro (with the same characteristics as the contracts in euros),
  • and units of account with risk and return profiles varied: market shares, bond, Fund diversified, guaranteed or protected markets, units or shares of real estate companies.

Namely: often as it is possible to withdraw l´argent at any time c´est why funds keep reserves of cash doing decrease yield. In reality they have for example 10% liquid 30% duty and 70% d´actions for a background action.

Types of management:

Free management

The Subscriber distributes itself its savings between the euro support and/or (s) unit (s) of account. This type of management assumes that you are able to react to developments in the financial markets. L´Avantage c´est that nothing prevents you to take € 100 and € 100 here to take what you need.

Profiled or under mandate management

The majority of contracts which offer different profiles of management.

You then give the managing body manage its payments according to the selected profile:

  • the prudent profile or security, largely composed of products bond and currency;
  • the dynamic profile, which favours equity investment;
  • the equilibrium profile, which household a balance between security (products bond and monetary) and cost-effectiveness (actions).

Profiled funds prefer the simplicity of management, since it is the management company following the evolution of values and which arbitrates investments.

Horizon management

For the subscriber management is simplified, because the composition of investments is changing automatically depending on its age and its objectives. More risky to 30 years, it will be more prudent approaching retirement.

Other information:

Arbitration

Arbitration is an operation that is to modify the allocation of capital or management direction. The operation of arbitration must be the subject of a formal procedure in the contract.

Arbitrations are subject to restrictive conditions (number of annual arbitrations allowed, limitation of arbitrations to exceptional situations, automatic arbitration…) which can differ from one contract to another and are especially pay.

The additional guarantees in case of death

Certain life insurance contracts also offer the possibility to opt for a death guarantee to compensate the consequences of a death occurring in an unfavourable financial context. This type of guarantee allows the contract recipients to retrieve all of the payments made by the Subscriber.

Various safeguards exist:

  • the floor warranty is common. It allows to receive a minimum on the death of the insured capital, regardless of the value of the units of account on that date. More often, the minimum guaranteed capital corresponds to the total of the contributions.
  • plus coverage can be provided by the contract: the beneficiary receives then the minimum capital invested, minus redemptions and expense, but improved at a rate defined in advance.
  • the ratchet guarantee allows the beneficiary to receive at least the capital at a level reached at some point.

In the event of death of the insured during the contract, contractual arrangements allow most often one or more beneficiaries to receive a benefit in the event of death.

Premiums of life insurance contracts

  • Scheduled payments life insurance contracts

The subscriber undertakes to comply with a schedule of payments monthly, quarterly, annual… These life insurance contracts typically allow additional payments to the convenience of the Subscriber. C´EST savings forced, useful for people who miss will.

  • Free payments life insurance contracts

They allow to decide freely on the amount of contributions and the date of payment. However, in certain life insurance contracts, a minimum amount of contribution is expected.

  • Single premium contracts

A sole contribution is paid at the time of the subscription.

The cost of life insurance contracts

Fees under the contract may be collected such as entrance (on the occasion of payments made) fees and management fees.

For life insurance contracts which, it can be also of arbitration expenses calculated on the amounts transferred in case of change of brackets, entrance fees inherent to certain media (Sicav, for example), etc.

How to choose a good contract of life insurance? Despite the increase in the tax burden, the life insurance remains an excellent support. If you look at the different selection criteria. These criteria include:

  • Performance
  • Entry fees
  • Management fees
  • The costs of arbitration
  • The participation in the profits
  • Payments
  • Capital under management
  • The length of the contract

Fees on payments, also called "trade" fees or "entry", are taken from each new installment of the Subscriber.

They are paid an average of 3 to 5% of the amount of funds on your life insurance. However, some insurers offer insurance life free of payments.

It is recommended not to subscribe to a life insurance with payments higher than 3.5% fee.

Life insurance costs include annual, so collected management fees each year. They are used to pay the insurer for your contract management.

It is a percentage of the value of your life insurance contract (where the announcement of a rate net or gross):

  • 0.6% for the part invested funds in euro;
  • 0.9% on the portion invested in units of account (contract multisupport).

These costs include all of the net amounts paid (fee deducted payments) as well as on the interest generated.

As a general rule, high management charges are unfavorable to your medium to long term capital. Better to choose a contract of life insurance with low management fees and charges higher payments, rather than the reverse. Term, this distribution will be more favorable.

It is advisable to not subscribe to a life insurance contract with more than 1% annual management fees.

Options for output of life insurance contracts

Their term life insurance contracts offer different possibilities:

  • the payment of the lump;
  • obtain the payment of the benefit in the form of pension or annuity immediate (the pension is paid until the death regardless of the date), or annuities certain (the benefit is then paid for a predetermined period). It is possible to request that the annuity is reversible for the benefit of a loved one. The subscription, you can also opt for an annuity dependency.

The possibilities of redemption or advance during the contract

If you need money before the end of the life insurance contract, it is possible to request a full or partial redemption or advance, insofar as the contract has a value of redemption. Indeed, certain assurances are devoid of commuted value.

  • The total redemption

This is an operation allowing the Subscriber to recover the entirety of the commuted value of the contract before its expiration date.

  • Partial redemption

The partial commutation allows the Subscriber to repay a portion of the commuted value of the contract before its expiration date either party remains invested in life insurance contracts.

  • Advance

The advance is an operation whereby the insurer agrees to make a cash advance without modifying the operation of the insurance contract. The insurer the not the insured savings deducted. The profitability thereof remains intact. It continues to generate interest normally.

 Tax benefits

• Gradually develop a capital

• Enhance an already established savings

• Benefit from a savings always available by redemption system

• Gains without tax

• Have income at retirement age

• Transmit a capital without undergoing mutations rights free of charge

Partial or total redemption

In a buyout, only the interests are subject to the discharge by flat-rate levy (PFL) or integrated into the income tax and therefore subject to the TMI of the client. It is therefore important to calculate 2 formulas in order to retain the most interesting.

Tax benefits:

0 – 4 years

The choice:
-35% legal tender lump-sum levy
-Income tax: integration in the taxable income.

4 – 8 years

The choice:
-15% discharge lump-sum levy
-Income tax: integration in the taxable income.

After 8 years

The choice:
-Legal tender lump levy of 7.5% giving right to a have tax same amount within the limit of a taxable basis of €4,600 (or €9,200 for a couple), or €345 €690.
-Income tax: integration in the taxable income after allowance of €4,600 (or €9,200 for a couple)

Understand that after 8 taxation is super light that is why managers love l´assurance life.

Transmission

Life insurance benefits from a specific tax regime with particular faculty of transmit up to 152.500 EUR per beneficiary without imposition, for premiums paid before your 70th birthday. It is also possible to implement the clauses dismembered by designating beneficiaries and usufruct, bare ownership on the other hand. This allows to transmit capital on two generations…

Tax benefit for the beneficiaries in case of death of the Subscriber

Life insurance has the advantage of being, under certain conditions, treated off succession. Amounts received by the recipient of a contract of insurance life to the death of the insured are therefore, in principle, not subject to inheritance taxes.

Capital paid to the beneficiary therefore a different tax regime by the date of subscription of the contract, payments of premiums and age of the insured at such payments:

Contracts entered into prior to 20/11/1991

• No taxation on payments made before 13/10/98

• Rights of mutations are 20% after allowance of 152 500 euros to 902 838 euros, and then 25% beyond (capital + interest) per beneficiary for payments made after 10/13/98

On contracts subscribed after 20/11/1991

Contract signed after 70 years

• Rights of mutations are 20% after allowance of 152 500 euros (premiums + interest) per beneficiary on payments made after 10/13/98

• No taxation on payments made before 13/10/98

Contract signed after 70 years

Scale of the classic succession after allowance of 30 500 euros (only on premiums) for all beneficiaries

• The interest is exempt from right of Succession

 

It's good well but otherwise what is its purpose?

The main advantage of life insurance is to be a vehicle, both insurance and retirement. It can also be a vehicle for succession and donation.

  • A life insurance contract: contracts of life insurance, or insurance policy, guarantee their holder the payment to the person designated on the contract, the beneficiary, of the amounts paid to the contract.
  1. Savings: it allows payments scheduled, free or modular to perfection, allowing in a strategy to get rich to collect every month a small sum painless to magnify its capital, do not forget, more you time and rates, better.
  2.  Develop a savings: it allows to capitalize in a contract with a flexible and diversified management
  3. Raise revenue: partial redemptions, programmed or not, are possible at any time with a taxable base limited to interest-only removed; They generally represent a small portion of the redemption

The owner may designate that pleases it as a beneficiary. It may also designate one or more persons and give them on capital shares.

  • A vehicle of succession: the interest to use life insurance to prepare his succession is mainly tax, since the payment of funds to the death of the holder is out of inheritance tax in the limit of a capital of 152 000 euros.
  • A mechanism of transfer of assets: usually, the owner designates as beneficiary of the contract in case of life, i.e. as a beneficiary on the date of retirement. The thing is logical and makes insurance a retirement contract. But the beneficiary may also designate a third party as beneficiary, even if life on the day of retirement. In the same way that for the estate, it is then a donation out of right of donation, untaxed below the 152 000 euros of the 990 – UDI general tax Code article. Life insurance benefits from a specific tax regime with particular faculty of transmit up to 152.500 EUR per beneficiary without imposition, for premiums paid before your 70th birthday. It is also possible to implement the clauses dismembered by designating beneficiaries and usufruct, bare ownership on the other hand. This allows to transmit capital on two generations…

 

My advice:

Tax benefit, possibility to diversify. C´EST really a commodity to have in its portfolio.

2.9% is the average performance of funds in euros guaranteed in 2012. It drops. Therefore change.

conclusion

Life insurance so has everything to please

 

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