How to write the beneficiary clause of a contract of life insurance

All contracts of life insurance, death or retirement savings have a beneficiary clause. It allows to designate persons who as the case will receive the capital or annuity after your death. It is therefore very important.

This clause may be drafted at the signing of the contract or filed with a notary.

A 'standard' clause contained in the contracts

This clause can be written about just when you complete the subscription of the contract and answers to the most common objectives of transmission. It usually involves that available funds will be forwarded to the death of the Subscriber:

·       spouse or partner from PACS;

·       failing that, his children born or unborn, alive or represented by equal shares;

·       or finally to the other heirs.

Customize the clause...

If the standard clause does not suit you, you can change to denote that you see fit. It is possible to customize this clause according to your wishes: it can be to give priority to a child or a third party, for example, or an association. It is also possible to provide for a different apportionment according to the beneficiaries (50% for my son Paul, 25% to my wife Marie, 25% to my grandson Arthur...), or even to "dismember" the rights of this clause (the usufructuary enjoys the right to enjoyment and revenues of the property and the bare owner covers the full ownership to the extinction of usufruct). In short, one can almost all be! However, some precautions are necessary, including if the beneficiaries are not reserving heirs could ask the judge to return the value of the contract in succession, by invoking the notion of "manifestly exaggerated bonuses.

... The change

Of course, is not the point every year on these issues? And yet, life events (marriage, divorce, breakdown of PACS, births...) make it essential to sometimes ask the question so that this clause is adapted to your situation. If this clause is no longer in line with your wishes of transmission, if you want to add or remove a beneficiary or refine the existing entries, you can do so by sending an email is:

·       Your insurer; the letter must be written, dated and signed by your hand, and include references to your contract as well as a designation very specifies the recipient (s). BYOW notifying these changes will be sent to you by the insurer (if the clause has been drafted by the insurer)

·       To your notary to record your wishes in a will. So the beneficiary rapidly collect funds, don't forget however to mention the references of the contract (name of the insurer, number...). At the same time, don't forget to contact your insurer of the notary responsible for your estate.

The pitfalls to avoid

Designate a single beneficiary is to take the risk, if it disappears prematurely, that capital be reintegrated to the estate and taxed at the scale of human mutation.

·       You can designate multiple beneficiaries jointly (' my spouse and my children born or unborn ' or 'my father and mother') or successively ("my spouse, failing that, my children born or unborn, alive or represented, unless my heirs").Only the mention 'live or represented' helps the children of a deceased beneficiary to be not excluded from sharing.

·       Be specific in the designation of beneficiaries... Avoid formulations little explicit ("my friend Jean") specifying the names, date and place of birth of the beneficiary. Finally, you should be aware that if you specify the recipient by its quality, it is assessed on the date of transmission of the capital: "to my wife" will be one that will have this quality to your death.

·       But do not be too! for example, if you specify 'my children Julie and Sophie', this can problematic with the arrival of a third child, while "my children, living or represented" would have sufficed.

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What are the collected fees?

Insurers are growing savings on behalf of their clients. They compensate by deducting various expenses. The main are the fees on payments, deducted from each investment. They reach up to 5% of the placed amount. Each year, companies also levy capital management fees, which range from 0.4 to more than 1%. They are in addition to the internal costs of the selected media.
These costs impact the actual financial performance.

How to see clear on costs?

All fees collected in a life insurance contract must be clearly stated and gathered in its general conditions. They appear in a present box as soon as the first or second page of this document, gathered together in a single entry. No other fees than those listed here may then be requested, for the duration of the contract.

On the other hand, the UCITS used for support by the units of account management fees do not appear in this regulatory text box. To know, please read the information leaflet of the Fund which is supplied on request by the Distributor, or you can get on the website of the financial markets authority. Their importance is secondary for the policyholder insofar as these costs are directly deducted from the performance announced by such UCITS.

In all cases, it should be good to measure all the costs of a contract before purchasing it. Long term, the more forgiving are the annual management charge of life insurance it even, which are collected annually on constituted capital.

However, fees vary greatly depending on the nature of the contract and its mode of distribution. The products sold on Internet, personalized advice, and very simple products in general have low charges. Very complete contracts, incorporating many funds and sold by advisers, are more heavily loaded.

How to retrieve my money?

Life insurance is a long-term investment, but saving is generally still available.
There are three ways to retrieve the capital: only once in many, or transforming those into annuity, i.e. an income paid until death.

The insured automatically receives the accumulated capital is alive to the expected term of the contract, the insurer paying a check representing the entirety of his savings. If there no need of this money at this time, the insurance company suggested generally postpone the exit by renewing the contract by tacit agreement.
This contract period is indicative: If you need your money sooner than expected, it is not blocked. Each contract includes in fact a 'redemption value' permanent, corresponding to the net amounts paid and financial upgrading’s. Rare life insurance levy penalties of output if it is early, but may not exceed 5% of the amounts paid.
When the insured dies before the end of his contract, capital shall be paid to the 'beneficiaries in case of death' that it has appointed.

Three exit doors

Three exit doors exist in most life insurance contracts:

·      The «redemption» total corresponds to a definitive closure of the contract. You remove at once all your capital. It is a decision without return and if you again want to save in the context of life insurance, you will need to open a new contract then wait eight years to optimize taxation. The closure of a contract by total redemption may also lose inheritance, acquired benefits through the age of your payments.

·       The partial redemption to remove part of the constituted capital, while leaving the balance grow. It is a very practical solution to supplement income during retirement, or to deal with an unexpected expense. Money that remains on the contract retains all the tax benefits acquired from the origin.

·       The transformation into a life annuity is to exchange its savings - or part - against a regular pension, paid by the insurer to the insured's death. It's a radical solution, because savings is not yours. In return, you can be sure to receive this income as long as you are alive, even if you beat longevity records.

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How subscribe to life insurance?

Life insurance is sold by insurance companies, banks, mutual, on the Internet and even in the financial areas of stores. There are hundreds of different products.
At the opening of a contract, you make a first payment of money and the insurer issuing you legal documents, such as the General conditions or information leaflet, as well as subscription bulletin.
In general, contracts leave the freedom to invest when you want, but we must respect a minimum amount that varies from a few dozen to several thousand euros.

A few tips...

·       There are contracts requiring the insured to make regular payments, typically every month. These products are deprecated, because they are almost always accompanied by penalties in the event of interruption of the payment of contributions.
It is better to choose a contract "to free payments', you will feed to your own liking. Including by regular payments directly debited from your bank account, if you wish to save each month. You can change or stop these samples when you want to, without any consequences.

·       Some life insurance combine both a protection in the event of death and a guarantee in the event of life. They are usually punitive. Better subscribe two distinct products: one for saving, one for death insurance to protect your family if your wealth is not sufficient in the case of premature death.
In all cases, you can hold as many contracts as you want: the detention of life insurance is bounded neither in number nor in amount.

Designate beneficiaries

At the opening of a contract, the intermediary invites you to designate the beneficiary in case of life (you in general) and to indicate recipients who would receive capital if you were to disappear prematurely.

The designation of these beneficiaries in case of death is free: you can indicate the person of your choice, without any limitation. This designation can be changed as often as necessary. Similarly you can stipulate a non-egalitarian between beneficiaries distribution if desired.

It is preferable to designate several rows of beneficiaries in case of death. Thus, if the first on the list are deceased, are returning beneficiaries indicated in the second row, and so on. All contracts provide a beneficiary clause type suitable for the majority of the subscribers, which provides that the funds are paid in case of death "to the spouse, failing children born or unborn, alive or represented, failing to the heirs.

If these provisions are not suitable for you, change them to reflect your priorities.

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Why take out insurance?

Without insurance, person travels by car, person would start skiing, nobody would repair his roof... without insurance, and nobody would take a risk! Or cannot do otherwise than to take risks in the life of every day, even if the accident is not a fatality.

A bit of history!

The appearance of insurance is a recent phenomenon, in France it dates only from the end of the old regime (1686: founding of the General company of big adventures and insurance); Although as early as the 14th century Italian merchants had found a way to protect their ships against losses suffered during a shipwreck or due to the ravages of the pirates. They created associations to establish funds to compensate them (code of Amalfi). The development of the insurance is linked to economic and social transformations: the transition from an agricultural economy to a diversified economy has multiplied the causes of damage (industry, trade), and the concentration of populations in cities with the appearance of new housing and new ways of life spawned new scourges.

Danger, risk, accident... negative gearing to be anticipate

The principle of insurance is based on the concept of risk, i.e. the exposure to a hazard potential, inherent in a situation or an activity, and could not face the financial consequences, whether related to property or persons. The danger is the prelude to the risk which is the prelude to the accident. Thus the danger having been identified, risk becomes perfectly describable, it is likely to occur but it is not known whether it will be carried out and when it materializes. Insurance is a contract: in consideration of the payment of a fee, also called premium, the insurer guarantees specific benefits to an individual, an association or a company in case of a risk clearly identified in the contract. The notion of risk is a key insurance, it is a random event dreaded by an insured for its financial consequences. The hazard is based on three criteria:

The future: we cannot ensure a car accident that has already occurred;

The uncertain: we cannot ensure a certain risk that materializes at a date known;

The involuntary: cannot ensure the damage that the insured causes or causes on a voluntary basis.

Make sure to protect property and persons

Damage insurance

The traditional vocation of insurance is to allow replacement of goods destroyed or cannot stolen. In addition, today the liability in the field of life insurance domestic, professional activity, traffic and recreation has grown considerably. In this case, to ensure against damage and the potential damages involuntarily caused to third parties.

Property insurance and liability insurance are designed to protect the heritage of the insured. They are, for some grouped in "casualty" contracts (multi-risk housing, property & casualty company...). The most common property insurance are fire insurance, theft insurance, water damage or breakage of ice but other types of events are automatically included (natural disasters, attacks,...) or optional.

Insurance of persons

Insurance covers the risks that affect the person, either in his physical integrity (insurance bodily injury, health...), and either in its existence (life assurance). They offer a complete set of solutions adapted to each situation.

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What should I expect from a rental liability insurance?

As there is standard no. are in the field of the rental risk, you would be wise to consider what insurers offer before you buy. Ask what are the situations provided for by the police that we offer. For example, some policies exclude the vandalism or damage caused by a flood. Insurance all risks covers an extensive list of claims, while specific risks (perils) insurance covers only claims listed in the police. Ask the insurer to clarify if the proposed policy covers the total cost of moveable assets (value on the day of the accident) or the cost of their replacement (replacement value). Some fonts take account of depreciation of assets (the decrease of their value due to normal wear and tear), so that the holding will have to pay the full price to replace. Make sure, also, to cover not only the price of your goods, but also, if necessary, expenses to clean or repair (for example, in the event of fire or damage caused by water).

It is of the utmost importance that you asked the insurer to explain exactly what the proposed policy covers and does not cover. If you do not understand the meaning of a term in particular, ask for a detailed explanation. You might want to learn more about:

> liability

> warranty

> additional living expenses

> the replacement value

> Flight

> franchises

> discounts

> expressly insured items

Where can tenants buy rental liability insurance?

Rental liability insurance is sold by most independent brokers and insurance companies. As prices vary, tour suppliers and compare the price and content of the various fonts. Owners are responsible for the maintenance of all equipment heating and cleaning and maintenance of the fireplace chimneys. However, they are not responsible for cleaning the ductwork or ventilation hatches, unless they are blocked and do not allow air to enter a room.

As a general rule, owners are not required to clean the pipes for tenants who have allergies or respiratory problems. An owner may need to clean the pipes if the regional health authority issues an order for that purpose, or if the assurances given by the landlord concerning the ducts are erroneous. Take for example taking a who informed the owner of his allergy to cat hair before agreeing to rent housing. If the owner gives him the assurance that there has been cat no in housing and taking into view, once moved, of cat hair in the ducts, the onus then the owner to clean the pipes. Owners must always ensure that the temperature in their homes meets the minimum standards of the province. Although there's no fixed date for switching on the heater, the temperature in a building or shelter can never be below 18.3 ° c (65 ° f) and at any time during the year. During the day, between 7:00 AM and 11:00 PM the owner must ensure that the temperature never drops under the 21 c (70 f). A tenant who believes that the owner does not comply with minimum standards for heating should contact their local environmental health office.

Rental tenancies branch usually considers the situation as urgent when a heating installation is not functioning properly during the winter months and reminded the owners their obligation to see to the inspection and regular maintenance of their heating equipment to ensure that it does not fall down during cold days. The holding is responsible for cleaning the home and hatches for ventilation (floor and ceiling) installed in its housing. If the boiler is located in the housing, the owner can ask the holding to replace the filter in it and inform him of the frequency of this replacement and the required filter type. Tenants and owners who have questions about repair and maintenance of their building work can obtain information from the rental residential tenancies branch.

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Why buy a rental liability insurance?

The majority of the tenants know that owners have insurance covering their buildings walls, floors, doors, appliances. But the tenants should also be aware that the insurance taken out by an owner, called the insurance of civil liability of donors, does not cover their personal objects, such as furniture, if they are destroyed or damaged by fire or an act of vandalism. Tenants must also pay any accidental damage caused by them to any part of the property of the owner. They are also responsible for any damage caused by them to the personal property of other tenants. If, for example, cooking a meal, you turn on accidentally a fire that spreads to other accommodations or other parts of the building, you can be held liable for the payment cost of repair of any damage caused to the building (which includes other housing), as well as fresh, replacement of all property damaged in other dwellings. Therefore, a rental risk insurance can provide peace of mind to the tenants.

Why should I pay me a rental liability insurance?

Rental liability insurance helps you pay the replacement of stolen property or, where appropriate, replacement or repair of the goods destroyed or damaged by fire, smoke or water, vandalism or similar acts. Even if you have little high price, this could cost you dearly to replace all your furniture, clothes, books and CD, your computer or other machinery and electronic devices, sport, jewelers items and kitchen utensils.

This insurance also protects you against the cost of the damage that you might accidentally cause to others. You could be held liable for these damages, even when it is a prompt that causes. In addition, a guest who is injured in your home can sue you for damages.

You could be held liable if, for example, a person you takes the feet in a carpet or grave of a stepladder.

Rental liability insurance cost dear?

You can get a cheap rental liability insurance. The exact cost of the policy depends on the value of the insured property and the amount of the guarantee. Taking into account what it would cost you to replace your property and the importance of protecting others, this can be a wise investment.

What are the types of liability insurance available on the market?

The rental liability insurance cover two distinct areas: civil liability and personal property.

Liability means something akin to what is usually covered by a homeowner’s insurance policy. This warranty protects the tenant if it or a guest causes damage to the building. It also protects the tenant against claims and legal proceedings for injuries sustained in its housing.

Part of the police which aims the movable deals repair and replacement of damaged or destroyed property.

Additional living expenses are another warranty for consideration. Under a policy with this warranty, the insurer will compensate the tenant of its stay in a hotel or another apartment if the tenant cannot inhabit the building or its housing during repairs. Some fonts may include the payment of the actual amount of meals and the hotel bill. Make sure you know how long the insurance company agrees to pay living costs: insurers sometimes limit amounts payable to what they consider a reasonable period of time.

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Why do you need insurance: liability civil professional?

Despite all the efforts deployed to achieve a working perfect, you and/or your company can be prosecuted by a dissatisfied customer. It alleging that an error or omission occurred. Your responsibility extends even to the gestures and actions by subcontractors that you use.

Errors or omissions can lead to heavy financial losses for you or your business.

Difference between General liability and professional liability:

-General liability insurance policy covers, inter alia, personal injury and/or property damage to others. It excludes financial losses resulting from an error or a professional failure.

-The professional civil liability insurance cover, in others, errors or omissions which you are legally liable in the performance of a professional service.

Reasons why businesses and professionals may be in need of a professional liability insurance:

          ·         Because a professional can be prosecuted for actual errors or suspected of;

          ·         Because a company can be held liable for the acts of its professionals;

          ·         An unhappy customer = risk of prosecution;

          ·         Defence costs can be very expensive;

          ·         More and more contracts require a professional liability insurance.

Domain public versus that of the private sector

All biologists who pose a professional Act should have a professional liability insurance that its scope be the public or private domain.

 What is covered?

Any negligent act, error or erroneous omission, or misleading committed or made, actually or allegedly, in the provision of professional services or the failure to provide.

If your business provides services to third parties for remuneration - entrusts subcontracting work - it can present a significant risk of professional liability. Just as you purchase insurance for your other risk, the possibility of professional liability is real and must be taken into account. Unlike other types of claims, the professional liability claims are not frequent but are generally very expensive, ranging from tens of thousands to millions of dollars.

Companies are today more pressure to meet the heightened expectations of their customers. These services increase the risk of professional liability. It is also more important to hold professional liability insurance today than in the past, because of the evolution of the legal profession and business. Indeed, due to the ever-increasing financial burden of enterprises and the more frequent recourse to prosecution as a means of dispute resolution, it is more likely to be named in an action in professional liability than before.

Remember that the best time to purchase insurance is when your history of claims are favorable and not just after you have been appointed in a prosecution. In addition, the absence of previous claims can also indicate that the contractual practices and management of your business are excellent.

The professional liability insurance is too expensive

This is fake. Taking into account of the protection which it provides overall underwritten insurance, professional liability insurance premiums are not very expensive. Professional liability insurance claims are usually not common but tend to be very large ranging from tens of thousands to millions of dollars. This is a substantial amount of self-insurance. The professional liability insurance premiums can also be reduced by managing risk factors, including the choice of higher deductibles, well-written contracts and a good quality control.

My business is small

The professional liability claims are generally not common but tend to be very expensive. Small businesses often do not have the financial strength to set such a claim. Without insurance, the heavy expense could force a smaller company to make layoffs, cut benefits, or even go bankrupt.

Then, the best course of action is to insurance professional liability for your company!

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