Death insurance: should you take out?

Who can subscribe?

All individuals from 18 years old. But it is generally impossible beyond 65 to 70 years.

– The guarantee can end when the insured turns 70, 75 or 80, depending on the contract. “It will be necessary, if necessary, to ensure that it is not renewed when the capital can no longer be served”, notes Pascale Micoleau-Marcel who also advises to read the disclaimers carefully: illnesses not declared in the health questionnaire, high-risk sports, suicide, etc.

For what cost?

The premiums due depend on the insured capital, but also on the age and health of the subscriber (smoker or not, for example). For a capital of €30,000 (the average), they can range from €4 per month for a thirty-year-old to €30 for a sixty-year-old.

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Who can benefit?

The beneficiaries are freely chosen by the subscriber, and can be modified at any time. If none has been designated, the non-separated spouse, then the children, or ascendants are deemed to be beneficiaries.

Read also> Marriage, PACS, free union: the differences in the event of death

Transmission and taxation

As with life insurance, the paid-up capital is excluding estate assets for the designated beneficiaries, and there are no inheritance costs.

According to article 990 I of the General Tax Code, for sums paid before the subscriber turns 70, the only premium paid in the year of death is taxable at 20%, but with an allowance of €152,500 (common envelope with life insurance).

Premiums paid after age 70 are subject to inheritance tax, but with a reduction of €30,500or even an exemption if the beneficiary is the spouse or PACS partner.

Other payments in the event of death

Various devices allow the payment of a capital or an annuity after the death: the mandatory company provident scheme for employees; credit card insurance (after payment for a stay or trip, for example); the death benefit paid by health insurance (for employees, the self-employed, job seekers, etc., but not retirees); compulsory mortgage insurance.

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