Insurance

Death insurance: a provident contract for your loved ones

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Death insurance: a provident contract for your loved ones. Death is often sudden and can leave loved ones, particularly destitute. From a financial point of view, the consequences can even be disastrous if nothing has been thought of to protect the deceased’s relatives. There is a solution to avoid this situation: take out death insurance.

Above all, a provident contract

Death insurance falls within the field of provident insurance, which means that the insured risk is the insured’s death. When you take out your contract, you will designate one or more beneficiaries.

You determine the duration of your contract at this time and the amount of lump sum that will be paid to your relatives if you ever die before the end of the period indicated. If ever the insured is still alive at the end of this date, no capital will be released. It should be understood that this is not a savings contract, but indeed an insurance contract that guarantees a risk: your death.

Principles of the contract

You will have to pay contributions regularly. These will feed your capital throughout your death insurance contract. This is to underline one point: you cannot recover this capital during your lifetime; in other words, the release of the capital is only effective when you die.

Also, if the risk does not materialize, you will have contributed to nothing. Only certain insurers offer they have insured a reimbursement of the contribution parts, such as the Main, provided they have been insured at home for more than twenty years. The capital is only released during your lifetime, during the contract period, in the following specific cases:

-in case of disability

-in the event of loss of autonomy

In which case to subscribe to this contract?

Death insurance is particularly useful for couples where one of the members is not working, and even more so if the couple has dependent children. Likewise, this precaution can be useful for married people who have a large age difference, and one of the partners is likely to die sooner than the other.

In addition, unmarried couples are particularly affected by this guarantee because the remaining cohabiting partner will not be able to claim a survivor’s pension.

How does it work?

If you want to take out death insurance, you will then have to determine the amount of capital to be insured. It is, therefore a question of calculating the financial consequences that a death can cause within a household. Once you’ve done your calculations and estimates, all you need to do is pour in your financial effort every year.

Banks usually offer life insurance contracts, but you can also go through insurance brokers who offer these services at a lower rate. One thing to remember: the older you get, the more insurance premiums increase because the risk of death is increased.

Take the time to educate yourself and compare offers

Before subscribing to a death insurance offer, take the time to do your research. Indeed, it is a question of knowing the precise conditions under which the capital is transferred.

For example, some insurances plan to pay back the capital only in the event of death by accidents due to an external cause. In this way, cardiovascular or cerebral accidents are completely excluded from the contract. A point to watch, therefore.

Hello, I have been working as an investment consultant and author for more than 20 years. I love what I do and I have enriched everyone around me. A lot of money is not important, the main thing is how you use the money.

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