what are the differences between individual and collective contracts?– Get a quote in minutes

Savings product acclaimed by the French, life insurance constitutes an interesting remuneration medium thanks to its attractive taxation. Thus, it is of real interest to anyone wishing to buy real estate, to build up capital for retirement or to pass on wealth. However, before taking out a life insurance contract, you should know that there is individual life insurance but also collective. Explanations.

Individual life insurance

The individual life insurance contract constitutes the most widespread offer. To benefit from it, all you need to do is contact an insurer or call an insurance comparator.

In both cases, it is possible to determine and define the terms of the contract life insurance such as entry fees or exit conditions.

With an individual life insurance contract, you benefit fromfull freedom for its management.

Group life insurance

The group life insurance contract requires go through an intermediary – it can be a banking establishment or an insurance company – which takes out a given plan for several clients with an insurer. In other words, you are only a member of such a life insurance contract.

Consequently, it is up to the intermediary to negotiate the terms of this group life insurance contract which are often interesting. For example, entrance fees are generally low. Unfortunately, it may be that these contractual conditions change during the execution of the contract and ultimately turn out to be less favorable. Note, however, that the insurer is required to notify you of the change in these conditions at least three months before they become applicable.

Among the various group life insurance offers, it is possible to mention the ” retirement contract article 83 “. Collective retirement savings plan offered by the company, this contract is often mandatory. It consists of contributing while benefiting from a contribution as well as tax deductions on contributions. Note that at the time of retirement, the exit can only be made as an annuity.

In health insurance too

This distinction between individual contract and group contract is not unique to life insurance. It is also found in health insurance.

However, in this regard, it should be known that from January 1, 2016, any private sector company will be required to offer its employees collective health coverage. And, if it turns out that this group health insurance does not quite meet the employee's health needs, the latter can take out additional coverage.