Provident contract: why, how, for whom?

Provident contract: why, how, for whom?
Each year, many French people turn to provident insurance contracts to respond more calmly to the vagaries of life. These devices have the advantage of constituting a solid protective shield for policyholders and their families. But what exactly do they cover? And why take out provident insurance?

What is a provident insurance contract?
As explained in the EVIN law, the term provident fund refers to “operations aimed at preventing and covering the risk of death, risks affecting the physical integrity of the person or linked to maternity, risks of incapacity for work or invalidity or even the risk of unemployment. ”

Concerning provident insurance itself, it brings together the various contracts and guarantees designed to cover the costs related to work stoppages, accidents of daily life or even death. The goal is to allow the insured and his relatives to maintain their income despite an unforeseeable event.

To deal with the vagaries of life, provident insurance contracts are therefore essential. In the event of death, disability or temporary or permanent incapacity for work, you will receive compensation to preserve your standard of living.
Provident insurance: the types of existing contracts
Currently, there are different types of contracts. To take out provident insurance, you will have the choice between:
1 - An individual provident contract
In this first case, provident insurance is taken out by the insured himself. He takes the necessary steps with an insurance organization or an insurance intermediary in order to be able to sign the contingency contract that best suits his needs.
2 - A compulsory insurance contract
It is then a business provident contract, taken out by the employer to cover its employees. Currently, private sector employers are required to pay insurance contributions to cover costs in the event of the death of one of the employees. Some employers are even encouraged to take out company provident insurance with more extensive guarantees: temporary incapacity for work, invalidity, accidents at work, etc.
3 - An optional insurance contract
This last type of contract is generally taken out by a legal person, association or employer. The legal person then leaves the choice to its employees or members to subscribe or not!
 Focus on the Madelin law
Are you not an employee but want to insure yourself and your family in the event of the unforeseen? Taking out a provident insurance contract is then crucial! The Madelin law of February 11, 1994 allows non-employed workers to benefit from the guarantees promised by provident insurance.

Why a specific law? Because the compulsory scheme for self-employed workers is often insufficient. In order to protect themselves against the consequences of personal or professional risks, the self-employed can count on provident insurance. Protecting your family, regulating decreases in income, being more serene about the future ... The provident contract allows all of this! On the other hand, thanks to the Madelin law, it is possible to benefit from attractive tax advantages by deducting contributions from taxable income. In short, a real boost for the self-employed!
How do provident contracts work?
Monthly installments? Monthly or quarterly annuity system? Refunds? Find out all the answers to the most common questions you ask yourself.
General operation
Provident insurance is relatively simple to operate. First stage ? Take out an insurance contract with the insurance organization of your choice. Once the file has been validated, the newly insured person must pay monthly payments in order to benefit from guarantees in the event of risk. Therefore, contributions make it possible to build up real capital which will help the insured and his relatives in the event of hard times. Note, however, that the amount collected through monthly contributions will not be refunded to the insured, even in the absence of risks. Still, provident insurance is one of the safest (and cheapest) ways to deal with the vagaries of life.
The different guarantees of provident contracts
Provident insurance, whether taken out by an individual or a professional, offers various guarantees. The most frequent are:
1 - Life accident cover
“An accident happens so quickly!” We sometimes hear in a conversation. Unfortunately, this is the sad truth.