Death insurance: should you take it out?

Who can subscribe?

All persons from the age of 18. But it is generally impossible after 65 to 70 years.

– The guarantee can end when the insured turns 70, 75 or 80, depending on the contract. “If necessary, it will be necessary to ensure that it is not renewed when the capital can no longer be served”, notes Pascale Micoleau-Marcel, who also advises, among other things. read the disclaimers carefully: diseases not listed in the health questionnaire, high-risk sports, suicide, etc.

At what price?

The premiums due depend on the capital insured, but also on the subscriber’s age and health (smoking or not, for example). For a capital of €30,000 (average), they can vary from €4 per month for a thirty-year-old to €30 for a sixty-year-old.

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Who can benefit?

The recipients are freely chosen by the subscriber and can be changed at any time. If no one has been designated, the non-separated spouse, children or ascendants are considered beneficiaries.

Also read> Marriage, PACS, free association: the differences in case of death

Transmission and taxation

As with life insurance, the capital paid in is exclusive of the estate of the designated beneficiaries and there are no inheritance costs.

According to Article 990 I of the General Tax Code, the only premium paid in the year of death, for amounts paid before the subscriber reaches the age of 70, is taxable at 20%, but with an allowance of €152,500 (joint envelope with life insurance) .

Premiums paid after age 70 are inheritance tax, but with a reduction of €30,500or even an exemption if the recipient is the spouse or PACS partner.

Other payments in the event of death

Various arrangements allow the payment of a capital or annuity after death: the compulsory company pension scheme for employees; credit card insurance (after payment for e.g. stay or travel); the death benefit paid by the health insurance (for employees, self-employed, jobseekers, etc., but not pensioners); compulsory mortgage insurance.

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