Who has never heard of life insurance? It is, in the opinion of many experts, the preferred investment of French women and men. This is not very surprising, given the effectiveness of the product… as much as its history. “Life insurance is a product that was a little strange at first but which ended up making its mark. Several tax systems favored it over other investments and it benefited from poor French tools in terms of long-term savings. It was therefore not very complex to fill this void. Yet, it must be said, life insurance has not been particularly deserving; even if it is not the investment of the century”, indeed explained the economist Jacques Bichot in our columns.
However, it is clear that life insurance is not the only type of product in this family that could be of interest to savers. There are also other alternatives… such as whole life insurance in the event of death, describes the specialized site Previssima. It is a special savings product, a hybrid of life insurance and death insurance. It therefore responds to special rules but can be interesting for those who would like to diversify their assets and prepare their possible succession.
In fact, informs Capital, whole life death insurance makes it possible to provide for the payment of the accumulated capital to a beneficiary designated beforehand, when the contract is signed. The money is only paid, as the name suggests, when the signatory dies.
It is, continue our colleagues, essentially subscribed with a view to inheritance and benefits from a “softened” tax system which often makes it possible to cover the inheritance rights that the heirs would have to pay at the time of the bequest. That being said, its operation also ensures the protection of people deemed vulnerable.
In practice, continues Previssima, whole life death insurance can be taken out between the ages of 18 and 70 and the coverage is then unlimited until the death of the insured. The greater the capital, the more the insurer can require extensive health examinations. In all cases, a medical questionnaire must be completed.
Once this is done, it is possible for the insured to make regular payments, which he can then recover by buying back the contract. Be careful, however, because the lifetime guarantee includes exclusions relating to false declarations of health or certain types of death. It is therefore necessary to pay great attention to the details of the contract signed.
Whole life death insurance provides several systems relating to the payment of premiums. It is possible to choose between three different systems, which correspond to:
Naturally, the amount of these premiums depends on a number of factors, including the age and state of health of the insured, the amount of guaranteed capital, the payment options selected, etc.
