Life insurance is a form of investment that obliges an insurance company to grant an annuity or lump sum to one or more beneficiaries. In exchange for the payment made by the insurer, the underwriter of the contract is obliged to pay the premiums. This savings product allows the policyholder to build up capital which can be transferred to their relatives in the event of death.
What are the conditions for opening a life insurance contract?
In order to open a life insurance contract, the person concerned must, in the first place, possess the legal capacity to open one. Consequently, guardianship adults and minors are not allowed to subscribe to this savings product on their own. Hence, the insured must agree to pay the premiums mentioned in his contract. He is also required to honestly answer the medical form provided to him by the insurance company. Furthermore, the latter also has its share of obligations to comply with. In fact, he has the duty to collect all the information regarding the family and economic profile of the saver. This approach will allow him to offer the subscriber a contract suited to his situation and objectives. In addition, the insurer is required to submit to the insured an insurance proposal together with a draft waiver letter. He is also responsible for providing the subscriber with an information note. The latter is not essential for contracts that have a surrender or transfer value.
How to designate the donee of your life insurance contract?
The beneficiary clause allows an individual who has taken out life insurance to determine the legatee of his contract in the event of death. This arrangement gives him the opportunity to freely choose the donee of its funds. He therefore has the right to designate his descendants, ascendants, friends, etc. as beneficiaries. According to the approach indicated in his contract, the saver has the option of mentioning the latter’s heir either with an authentic will, or with a simple letter addressed to the insurer, or with a mention in the insurance contract. . It is imperative that the legatee expresses his consent to his appointment if he wants it to have a definitive character. However, he is only allowed to take this step 30 days after the conclusion of his life insurance contract.
How to change the heir of his life insurance contract?
For the entire duration of the contract, the insured has the right to change the legatee of the same. However, such a change will not be possible if the person designated as the beneficiary has already formally approved his designation. It is specified that the acceptance of the donee is irrevocable if it took place through a tripartite agreement between the insurer, the subscriber and the accepting beneficiary. Likewise, the acceptance of the heir is final if it took place through an agreement between the accepting legatee and the saver, notified to the insurer. In addition, the insured has the option to change the donee of his contractlife insurance, at any time, if the heir has not yet accepted his designation. In this case, to change the legatee, the subscriber is obliged to inform the insurance company of his decision by sending a letter. Upon receipt of the latter, the insurer is obliged to draft an amendment that modifies the beneficiary clause of the initial contract.