The rules of the game Tips in life insurance

For beneficiary clause in a life insurance contract, the rules of the game have changed since December 17, 2007. Now, the underwriter of a contract is more protected. 

Explanations.

An insured person had subscribed a life insurance contract and designated a beneficiary on his contract. It warned of this 'largesse', had to submit to the insurer a mail stating that he "accepts" the benefit of the contract. This approach had the effect of freezing the contract: the insured could then no longer modify the clause, or make withdrawals without the agreement of the beneficiary. This explains that many policyholders were reluctant to notify recipients, to avoid seeing their contract blocked... And that fact, upon their death, the beneficiaries were not always notified.

For contracts of the time which the benefit has been accepted, you should know that a judgment of the Court of cassation held that, when the equity of redemption is provided for in the contract, the underwriter, even in the presence of a willing recipient, could achieve buy-backs on his contract without obtaining the approval of the beneficiary. Thus, when the contract was the subject of acceptance prior to December 18, 2007, the subscriber retains, in principle, its Faculty of redemption.

This situation which gave rise to many abuses, Parliament passed a law defining the new contours of the right of beneficiaries of life insurance contract.
Now, the acceptance of a contract cannot be done by way of endorsement, by deed or under private seal. This agreement may be tripartite between subscriber, insurer, and beneficiary accepting or bipartite between the Subscriber and the beneficiaries, having taken care in this case to inform the insurer. Thus the Subscriber remains free to refuse the acceptance of the beneficiary. This rule applies to contracts in progress not yet accepted and for contracts concluded after the date of the Act.

·         To optimize the taxation of life insurance, savings must remain invested for at least eight years following the subscription of the contract. It is at the end of this anniversary that taxation is the sweetest. Contracts can usually be purchased for a much longer: this is not annoying because your money is always available. In general, professionals recommend to subscribe to the "whole life", so that the insured chooses without constraint the time of its release.

·         A life insurance contract is not transferable. If you are not satisfied with a product, then close it and open another, again using run tax deadlines. This is why we must choose his or her contracts.

·         Placed amounts in brackets expressed in units of account' are not guaranteed, unlike those that are placed in the funds in euros. Well measure the risk associated with each compartment before investing.

·         You have 30 days after the underwriting of life insurance to cancel it, if you find that the product finally does not correspond to your needs. Inform the insurer by letter recommended - a model is given in the documents he gave to you -: you will be refunded within a month.

·         The Subscriber must define the persons to whom the capital would be paid if he died. Take the time to choose with care these 'beneficiaries in case of death'. Enjoy total freedom and the following persons receive capital outside the estate.

·         The benefits of life on taxation and succession may be questioned if the invested premiums are "clearly exaggerated". Do not place all his money for the sole purpose to escape taxation.