Life insurance is sold by insurance companies, banks, mutuals, on the Internet … There are hundreds of different products.
When you open a contract, you make a first payment of money and the insurer gives you legal documents, such as the general conditions, the Key Information Document (DIC) or the information notice, as well as the subscription form.In general, contracts allow the freedom to invest when you want, but there must be a minimum amount that varies from a few tens to several thousand euros.
A few tips…
There are still a few contracts requiring the insured to make regular payments, usually monthly. These products are not recommended, because they almost always come with penalties in the event of interruption of the payment of contributions. It is preferable to choose a “free installments” contract, which you will fill as you wish.. Including regular payments directly debited from your bank account, if you want to save every month. You can modify or stop these direct debits whenever you want, without any consequences.
Some life insurances combine both protection in the event of death and a guarantee in the event of life. They are generally penalizing. It is better to take out two separate products: one for savings, the other for death insurance in order to protect your loved ones if your assets are not sufficient in the event of premature disappearance. In all cases, you can hold as many contracts as you want : Life insurance is not limited in number or amount.
When opening a contract, the intermediary invites you to designate the beneficiary in case of life (you in general) and to indicate the beneficiaries who would receive the capital if you were to disappear prematurely.
The designation of these beneficiaries in the event of death is free : you will indicate the person or persons of your choice, without any limitation. This designation may be changed as often as necessary. Similarly, you can stipulate a non-equal distribution among the beneficiaries if you wish.
This designation is highly recommended because it is the condition for the life insurance contract to benefit from its privileged status in matters of inheritance. Including if you want the contract to benefit your heirs.
It is preferable to designate several rows of beneficiaries in the event of death. Thus, if the first (s) on the list are deceased, the sums will revert to the beneficiaries indicated in the second row, and so on. All the contracts propose a standard beneficiary clause adapted to the majority of subscribers, which provides that the capital is paid in the event of death “to the spouse, failing this to children born or to be born, living or represented, failing that to the heirs”.
If these provisions do not suit you, change them to reflect your priorities.