Qu’What is life insurance? life insurance ?

Most of us know that life insurance is an investment vehicle. However, at its core, and as the name suggests, it is designed to protect a beneficiary in the event of the person's death or partial or total disability. Here is a reminder of what life insurance is in France.

One of the most popular investments in France

L'life insurance is nowadays used mainly as an investment tool. It allows its subscriber to save money, while benefiting from certain tax advantages cumulated with those that refer to the transmission of heritage. The person can thus receive interest on his contract according to the capital invested and the returns of the life insurance to which he subscribes.

You can access a life insurance guide that explains the different types of insurance available and allows you to compare them to find the most profitable ones, depending on your needs. As it is one of the most interesting financial investments, this guide allows you to get the information you need to invest in it and to benefit from the different advantages linked to this investment.

Death insurance versus life insurance

Although it is true that when a person who has taken out life insurance dies, the policy is unwound and the beneficiary is entitled to the proceeds capital and interest paid to the beneficiary, this contract is very different from what is called death insurance. This is used to protect the heirs (or beneficiary) in the event of an early death. In the event that the prescriber dies before a certain date, the insurance company will commit to pay a monthly amount of money or an annuity to the person named on the contract.

This is to protect the individual and allow him/her to continue to pay the bills and pursue a certain lifestyle, following the departure of the subscriber.

Closing an insurance contract’life insurance

It is possible to close a life insurance policy before death. To do this, the subscriber must proceed to the total redemption of his contract. In this case, the insurer will pay the full amount of the value of the life insurance policy, at the time of closing, to the subscriber.

However, it is possible that the latter may have to pay redemption penalties.

It is not advisable to proceed to a complete redemption of a life insurance policy. In the long run, the contract benefits from various tax advantages, which can be enjoyed as long as it remains open. It is therefore preferable to leave an amount, even if it is very low, in order to be able to use it again, in the future.