Life insurance: how to see more clearly?

Life insurance: how to see more clearly?


There is no age to take out a life insurance contract, and it is a flexible investment, investing in its rhythm, and its rate varies with the media used. It helps you to see more clearly between term and permanent life insurance.

The principle of life insurance is relatively simple: the policyholder pays premiums (single or installments payment) and pay a fee. The contract ends on time if the insured is alive, or when he dies. In this case, the benefit is paid to the beneficiary of the contract. Namely: it is also possible to withdraw money before the end of the contract.

For interest, the insurer invests the premiums and pays compensation to the purchaser of life insurance. The rate varies depending on the medium used. It can be in euros, in units of account (investment vehicles other than euro fund) or multi-media (investments in euro and in units of account).

Whether one opts for a temporary or permanent life insurance, you are sure to benefit from tax advantages, especially as the initial capital is not taxed. Indeed, the tax only applies when removing (or redemption). And contrary to what is sometimes believed, it is not necessary to wait eight years to remove a portion of his money or to liquidate the contract.
Term life insurance: a limited period

The term life insurance protects for a limited time, determined its insurer. The duration of coverage can thus be terminated during the lifetime of the subscriber. It lasts for 30 years maximum, after which, often, we repaid its loans, you no longer dependent, and saved. It works as long as one pays its insurance premiums. When it ends, it is not protected, and it is necessary to renew its protection with another bonus, as a permanent insurance contract but will be higher (in fact, a life insurance policy costs more if you are older.)

One advantage of this life insurance is that it is possible to renew even when his health deteriorated (guaranteed renewals). Term life insurance offers the advantage that the premium paid for death to its beneficiaries. As with other life insurance, this amount of money saved is paid with a very favorable tax regime. To learn how to back life insurance and which company offers the best price, a life insurance calculator also allows to take out insurance online.
Permanent life insurance: a duration until death

Permanent life insurance works until the death of the insured as the insurance premiums are paid. It has a higher cost than term life insurance. It works with a cash value (amount the insured may receive in case of withdrawal or redemption), which acts as a loan which can be accessed easily. This cash value can be withdrawn at any time, but it also encourages saving. We can also give his life insurance as collateral for a loan from a financial institution.
Life insurance: significant returns

The premium for life insurance takes into account age, sex, health status of the subscriber and his lifestyle. Generally, life insurance is a very good choice at all stages of life, because it is a flexible product. When active, it protects its income, and it preserves a legacy for their heirs. In retirement, it helps to have an extra income.

Where contributions are spread over several units of account and invested over different market values, yields obviously depend on selected accounts and economic and financial cycles that affect them.