Alexa Seleno

Practical information on life insurance for novices

Juil 10, 2023
Practical information on life insurance for novices

Life insurance is a form of investment that obliges an insurance company to grant an annuity or capital to one or more beneficiaries. In return for the payment made by the insurer, the subscriber of the contract has the obligation to pay premiums. This savings product allows the policyholder to build up capital that can be passed on to their relatives, in the event of their death.

What are the conditions for opening a life insurance contract?

For a life insurance contract to be opened, the person concerned must, first of all, have the legal capacity to open one. Consequently, adults placed under guardianship and minors are not authorized to subscribe alone to this savings product. Then, the insured must agree to pay the premiums mentioned in his contract. He is also required to respond honestly to the medical form given to him by the insurance company. Moreover, the latter also has its share of obligations to respect. Indeed, it has the duty to collect all the information concerning the family and financial profile of the saver. This approach will allow him to offer the subscriber a contract adapted to his situation and his objectives. In addition, the insurer is required to provide the insured with an insurance proposal together with a draft waiver letter. He is also responsible for providing the subscriber with an information note. The latter is not essential for contracts that have a surrender or transfer value.

How to designate the donee of his life insurance contract?

The beneficiary clause allows an individual who has taken out life insurance to determine the legatee of his contract, in the event that he dies. This provision gives him the opportunity to freely choose the donee of its funds. He therefore has the right to designate his descendants, ascendants, friends, etc. as beneficiaries. According to the approach indicated in his contract, the saver has the possibility of mentioning the heir of this one either by an authentic will, or by a simple letter addressed to the insurer, or by a mention in the insurance contract. . It is imperative that the legatee expresses his agreement to his appointment if he wants it to have a definitive character. However, he is only authorized to take this step after 30 days following the conclusion of his life insurance contract.

How to modify the heir of his life insurance contract?

Throughout the lifetime of your contract, the insured has the right to change the legatee thereof. However, this change will not be possible if the person designated as beneficiary has already formally approved his designation. It should be noted that the donee’s acceptance is irrevocable if it was made by a tripartite agreement between the insurer, the subscriber and the accepting beneficiary. Similarly, the acceptance of the heir is final if it has been made by an agreement between the accepting legatee and the saver, notified to the insurer. In addition, the insured has the possibility of changing the donee of his contract oflife insurance, at any time, if the heir has not yet accepted his designation. If this is the case, to change the legatee, the subscriber is required to inform the insurance company of his decision by sending a letter. Upon receipt of the latter, the insurer has the obligation to draw up an amendment which modifies the beneficiary clause of the initial contract.

The magazine-insurance team of editors at your service! We look at all possible and imaginable information on insurance in order to help you sort it out. We strive to offer you quality articles to help you better understand the issues of this or that insurance.

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