Life insurance: what happens at the time of death?
There are many ways to save money, including signing up for a life insurance policy. The latter is an undertaking that obliges the insurer to pay a capital to the subscriber or a beneficiary in return for the payment of a premium. There are two types of life insurance policies: life insurance and death insurance. We are talking about life insurance at the time of death.
How does life insurance work when the subscriber dies?
Guaranteed risk in life insurance is the life of the subscriber or the insured. When the contract expires and the latter is still alive, the latter will then receive the capital provided for in the insurance contract. However, if the insured dies before the end of the term, the principal will be returned to the beneficiary. It is obvious in this case that the beneficiary and the subscriber are two different people. There may be a reduction or increase in capital gains when the principal is paid. As a result, the capital paid to beneficiaries may be greater than the total premiums paid. It should be noted that it is possible to buy life insurance or to request an advance but in compliance with certain conditions.
What are the different types of life insurance contracts? There are many types of life insurance contracts, depending on the type of exit as well as the duration. First of all at the level of the insurance premium, the insured can choose the payment in one go. He may also pay insurance premiums periodically. This can be done monthly, every three months or every year. This being the case, he has the possibility of making complementary payments without waiting for the delays mentioned above. It can also opt for free installment premiums. However, there is a minimum amount that the insurer must pay. In terms of life insurance contracts, the most common is the one in euros. There is also the multi-media contract which consists of investing in units of account. Finally, there is the euro growth contract which conditions the obtaining of the capital that after a minimum of eight years.