What are life insurance guarantees?

What are life insurance guarantees?

Nobody can deny it: life insurance is one of the favorite investments for savers. Together with Livret A, it is one of the reference products for all or part of French women and men. This is not surprising, as it has already been explained planet It has many advantages, including tax, but not only. This dominance can also be explained by the very flexible nature of such an investment…and by its historical dimension.

“Life insurance is a product that was a bit strange at first, but it made its mark in the end. It is preferred by many tax measures over other investments He took advantage of the weakness of French instruments in terms of long-term savings. So filling this void wasn’t too complicated. However, it must be said, Life insurance was not particularly deserving ; Even if it’s not the investment of the century,” economist Jacques Pichot already noted in our columns, calling it a “robust” investment.

Another benefit of life insurance, the specialist Ooreka website specifies, is thatIt can be used in many different ways. Thus, some can choose to pledge their contract when it makes sense. But what exactly is it?

Undertaking Life Insurance: What Exactly Are We Talking About?

pledgementions the French administration on the public service website, corresponds to A debt guarantee that matches a pledge.

“If the debtor does not pay the debt on time, the creditor: the person to whom the person owes money or to provide a benefit will use the guarantee given to him to obtain repayment. To do so, he can either retain ownership of the property offered as security or sell it. Thus the guarantee is a way to reassure the creditor That he will pay him. The type of property pledged will determine whether the guarantee is a pledge or a pledge”, can we read on the official platform.

But concretely, how does this apply to a life insurance contract? Who is this type of device for? What is the tangible interest? response elements.

Undertaking Life Insurance: What Are the Consequences of Your Life Insurance?

Thus, undertaking a life insurance policy allows the insured He presents his contract to a creditor to act as a guarantee. The device generally makes it possible to avoid mortgage costs or death insurance; When it is not used to ensure the solvency of a third party.

Of course, all this is not without impact on the life insurance contract in this way: the lien precludes all the benefits that the insured is usually entitled to. The latter, Ooreka reported, has access only to the corresponding value of the funds guaranteed by the pledge.

in case Debtor’s faultthe creditor may request the total or partial waiver of the contract.

How do you decide to pledge a life insurance contract?

In fact, the specialized site, continues to pledge the life insurance contract has a clear advantage: it allows Enjoy a line of credit without having to ‘withdraw the investment’.

To achieve this, having said that, we must Signing a contract of guarantees. In general, it is written in three separate copies. The first is for the insured, the second for the lender and the last for the insurance company. The debt is then secured by designating the lender as the beneficiary of the contract up to the amount lent.

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