What is the amount of the capital of the death insurance?
The amount in the event of death is not fixed. In effect, it is you who determine this with the insurer when taking out the death insurance. You define the amount of paid-up capital in order to know the amount of contributions to constitute it. Do not hesitate to carry out death insurance simulations in order to find out what capital you can consider for your loved ones according to your financial possibilities.
The amount of the death benefit must be calculated according to your budgetof course, but also according to the needs of your loved ones in the event of death by accident or death by illness. For example, if you are a couple and it is you who receive the most significant income, a higher capital will be necessary to help the surviving spouse to maintain a decent standard of living and meet their one-time or regular expenses.
>> CLICK HERE TO COMPARE DEATH INSURANCE <
An emergency payment within 48 hours
To protect your loved ones, you have the option of obtaining a quick first capital payment. Designated beneficiaries can benefit from emergency capital paid within 48 hours : it represents a part of the guaranteed capital. This allows to fund funeral expenses if you had not taken out funeral insurance.
The difference between funeral insurance and life insurance lies in particular in the use of capital. While the capital of the death insurance can be used for all needs, funeral insurance only covers funeral expensesthe capital is paid directly to the funeral directors.
Of course you can consider taking out these two contracts jointly in order to keep the capital of the death insurance for other expenses or to improve the standard of living of the recipients of the capital.
Payment of the death benefit: a variable period depending on the situation
Beyond the emergency capital payment made within 48 hours, a payment of the principal balance is expected in the short term. The insurance company, to make this payment, must obtain all the necessary documents, namely supporting documents such as a death certificate, or documents allowing the identification of the beneficiaries. If the beneficiary is designated by name in the contract, an identity document is sufficient. However, in a death insurance contract, it is possible to evoke a link. For example, the deceased can leave capital for “his children”. They must then prove their relationship by attaching to their application a birth certificate, a family record book, etc.
>> CLICK HERE TO COMPARE DEATH INSURANCE <
When everything goes smoothly, the payment is made within one month after the death of the insured. According to article L. 3132-23-1 of the Insurance Code, any delay results in the payment of indemnities: “the capital not paid automatically produces interest at twice the legal rate for two months then, at the expiry of this period of two months, at three times the legal rate”.
However, if the beneficiaries of the death benefit do not prepare a file in time, the period for payment of the capital can reach several months, or even a year.
The annuity: a payment until the end of your days
Death insurance allows the payment of a lump sum or an annuity. The life annuity is paid every month and thus makes it possible to compensate for the loss of income following the death of the subscriber. It is intended for the spouse or any other beneficiary. The subscriber is free to choose one or more beneficiaries, whether or not they are related to him.
It is possible toconsider an education pension allowing the children of the deceased to continue their studies.
Back to the different types of death insurance
When you take out death insurance, remember that the payment of a lump sum in the event of death is not automatic. To understand this, let’s go back to the different types of insurance contracts:
- l’classic death insurance provides capital in the event of accidental death or following illness;
- l’all-cause death insurance makes it possible to pay capital to the beneficiary of a contract, even if the death is not accidental or linked to an illness. Here, for example, suicide is taken into account, even if a waiting period of 12 months is imposed most of the time;
- l’temporary death insurance provides capital only if death occurs before the end of the contract. For example, you have taken out a contract up to age 80. If the risk does not materialize before this age, the capital will never be paid;
- l’whole life death insurance : this time, you choose a guaranteed capital. Whatever the age of your death, the capital is paid.
Note also that in the context of death insurance, you can consider options. The payment of a capital or an annuity can be considered even in the event of:
- total and irreversible loss of autonomy (PTIA);
- total permanent disability (IPT);
- permanent partial disability (IPP);
- temporary incapacity for work (ITT).
feel free to make a death insurance simulation to know the amount of your contributions according to the capital you wish to pay.
–
