Life insurance is one of the most preferred areas of investment by the French. This is a form of contribution that allows you to have a financial guarantee for you or your loved ones. There are different categories of life insurance and laws govern each of them. Want to know more? We invite you to read this article.
The main principles of life insurance according to the law
There are clear principles when it comes to life insurance. They apply to the different types of life insurance that exist on the market. There are three in total and they look like this:
- life insurance;
- Insurance in the event of death;
- Mixed life and death insurance.
You can also consult this ranking of life insurance market to make your choice.
Life insurance is the first form of insurance to which many people subscribe. The principle of this insurance is simple. It makes it possible to make a payment or an annuity to a subscriber previously designated in the life insurance contract. The subscriber can be the initiator of the contract himself or an external person, but close to the initiator.
Life insurance in the event of death
Life insurance in the event of death is also part of the category of insurance preferred by many people. It is by far one of the most important insurances, because it constitutes a guarantee for the family of the subscriber. On the death of the insured, it is possible that his relatives can benefit from the insurance, which is not always the case for insurance in the event of life.
Mixed life and death insurance
This insurance is the last in the list. It is the mixture between the two that we mentioned above. By subscribing to it, you have the option of being the direct beneficiary or designating another beneficiary. It is a two-in-one solution that also has its advantages. There are also specific conditions for subscribing to this insurance.
Life insurance tax regulations
Regarding the taxation of life insurance, the law has also issued some regulations that you should know. You must first understand that taxation is in a way the positive and negative consequences of your insurance contract. Taxation may also depend on certain elements that it will be useful for you to know.
Thus, it may depend on the type of operation you have performed. Taxation may therefore be different in the event of total or partial redemption, inheritance and others. In addition, the age of your contract can be an element determining the taxation of your life insurance. You can also put in the list the parameters concerning the payment date and the option you have chosen for your tax rate.
There are also other aspects of life insurance taxation that you can learn about by consulting a family law professional.
Ultimately, let us remember that life insurance is a device whose operation complies with legal provisions. You can also seek advice from your lawyer in order to choose the best life insurance.