Too many people confuse life insurance with funeral insurance or even life insurance and yet it is very different.
Death insurance is a provident tool whereas life insurance is a financial investment and there is a clause in the event of death. Life insurance then becomes a savings product.
More and more French people are concerned with planning for the future of their loved ones when they die.
Why take out death insurance?
Death insurance is a provident contract which guarantees the payment of a capital to one or more beneficiaries upon the death of the subscriber. In order to constitute the capital guaranteed to the beneficiary, contributions can be paid either monthly, quarterly or annually during the entire term of the contract.
On your death, the capital can be paid in the form of an annuity intended to ensure the education of the children or in the form of a lump sum.
You will be offered various guarantees depending on the choice of your insurer, for example invalidity, accidental death, incapacity for work, etc. Death insurance is also often chosen because it is also a tax-efficient solution.
In order to find the best amount of contributions, do not hesitate to request quotes (it's free).
2 types of death insurance contract
At the time of subscription, you will have to choose an expiration date.
It guarantees the payment of the capital or an education annuity upon death before the contract expires.
On the expiry date, the contract ends even if the subscriber is still alive. The contributions paid are then lost.
Whole life insurance
As the name suggests, this type of contract does not expire and ends when the subscriber dies.
By paying a capital or an annuity, you choose to protect your loved ones in order to cope with a possible drop in their income. It can also be used to finance a funeral or to provide an annuity for a disabled child or to prepare your estate.
What you must remember
Please note, life insurance is not considered a saving solution. During the entire duration of your contract, the contributions paid will never be returned to you but only to your relatives. Contrary to what many people think, death insurance is not just for seniors. The sooner you start to subscribe, the lower your contributions will be.
An insurance contract is ultimately very flexible since it allows you to choose the beneficiary or beneficiaries, the amount of guaranteed capital, the type of payment upon your death, the frequency of contributions and their amount according to your budget. .
In the majority of cases, the contract for this type of insurance is fiscally attractive.
If you take out as early as possible, death insurance can therefore be a very interesting solution in the event that you want to protect your loved ones during your disappearance.