Death insurance: which payments should be preferred according to your age?

There is no ideal age to take out life insurance. It all depends on your goals, your projects and the specific terms of the contracts that the insurance companies will offer you.

First of all, death insurance is one of the different types of guarantees that can be used to cover loved ones in the event of death. It is quite simply a question of providing for the payment, on his death, of a sum, capital or annuity, to a loved one or a designated beneficiary. You subscribe to it individually or as part of a collective contract, contracted by your employer, and this subscription is valid for a limited period or not.

The coverage is more comprehensive than funeral insurance, which is only intended to cover funeral expenses.

Two types of contracts exist for death insurance: the term contract and the whole life insurance. The temporary contract ends on a specific date, defined by the insured when taking out the contract. If the insured is still alive at this deadline, the capital or the annuity are lost, they are not paid to the beneficiaries. It is a contract that can be “lost funds”. For whole life insurance, the contract expires on the day the insured dies, the capital is paid regardless of the sum collected for the beneficiary. It is therefore not a lost-fund contract.

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Each insurer will determine the minimum age and the maximum age between which it is possible to take out death insurance. If generally you can start taking out insurance at 18, you have to find out because many groups allow insurance from the age of 16. The maximum age for subscription, meanwhile, is traditionally 65 years. Here again, exceptions exist depending on the insurance companies, you have to find out to be able to benefit from a subscription up to 68 or 70 years old.

Single payment, temporary or in life, certain types of contribution will be more favorable according to your profile taking into account your age and your financial means. The single payment is the most advantageous if you are able to block an average sum of 5000 €. Indeed, you pay in one go, your capital is revalued annually, and the guarantee is for life. To do before 60 years.

For temporary payments, it is a matter of paying a sum every month, quarter or semester and gradually building up capital. You modulate the payments over 5 to 25 years so as not to strain your budget. Preferably young.

Finally, the life installments, you pay a contribution until your death, which will be proportional to your age and the desired capital. If on the day of death, you have not constituted the capital, the difference will be paid to your relatives. On the other hand, in the event of an excess, it will have been paid at a loss.

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The earlier we get there, the better. When you are young, the contributions are lower than when you are old. For example, for a death benefit of €100,000, subscribing at age 30, the annual contribution is between €100 and €250, at age 40 it would be €150 and €400, at age 50 it would be between €400 and €1,200.

You must therefore see when it will provide you with added value, depending on your situation. This may be to protect his cohabitant or Pacs partner, because in the event of death in the couple, the estate does not provide for anything for the survivor except a specific and costly will.

You may want to take out death insurance to protect your spouse in the event of a large difference in income: this allows you to leave him with capital that will preserve his standard of living. Finally, you may want to protect your family more generally. It is advisable to provide capital corresponding to one year’s minimum salary to allow time for the surviving spouse to leave. The amount chosen depends on the needs of the family: house on credit, children who are studying, current projects…