The original purpose of life insurance is to guarantee compensation to the insured or to a beneficiary in the event of a serious event affecting the life of the subscriber.
Compensation in the form of an annuity or lump sum is paid:
- to the subscriber in the event of accident or illness
- to a beneficiary in the event of the death of the insured during the period of the life insurance contract.
The insured has the possibility of designating one or more beneficiaries on his life insurance contract and can change it at any time during the contract period.
We must differentiate between “Death insurance” which pays a capital or an annuity to a beneficiary only upon the death of the subscriber and which never allows the insured to benefit himself from the capital. And “Life insurance” which is a fixed-term contract equivalent to an investment which, at maturity, allows the subscriber to recover his capital increased by interest linked to the immobilization of funds.
Tax advantages on capital gains are also included in this formula. If before the end of the contract period, a serious life accident or the death of the insured person intervenes, the guarantee of the insurance taken out triggers the compensation of the beneficiaries registered in the contract.
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