With more than 22 billion in contributions in 2018, according to the figures available from the French Insurance Federation, the provident insurance market is a sector with great potential, particularly in the context of individual contracts. But you still have to know what exactly we are talking about.
The objective is to obtain support in the event of a problem
True. The notion of provident insurance refers to all the contracts which aim to protect you against the financial consequences of a deterioration in your state of health. You will therefore only benefit from the benefits for which you have contributed if you one day suffer from one of the problems covered by the agreement.
Only death is taken into account
True and false. The provident insurance sector is very broad and includes various coverages which, depending on the formula, can be triggered as soon as you experience a temporary incapacity for work or a more or less serious permanent disability. It is also possible to provide for specific allowances in the event of hospitalization.
That said, if you take out funeral insurance, the benefits for which you have contributed will logically only be paid on your death to the designated beneficiary in order to help them pay the costs of your funeral.
If the hazard does not occur, we recover the funds
False. Protecting yourself in the event of a serious health concern is one thing, but you still have to know what you are getting into to avoid unpleasant surprises. In fact, provident insurance contracts are deemed to be “sunk”. In other words, if no contingency provided for in the agreement occurs during the period of coverage, you will have contributed for nothing.
The operation is therefore very different from that of a life insurance for example, the objective of which is first and foremost to build up capital for you and which only plans to pass it on to relatives of your choice in the event that you do not would not have used it before your death.
Anyone can take out a provident insurance contract
True. The accident of life guarantee is thus taken out very early since it protects you, but also your children and the person with whom you live as a couple, with no time limit. Please note, however, that compensation is only paid from a permanent incapacity of at least 30% in the basic cover.
When buying real estate, we also have to take out a provident insurance contract, referred to here as borrower insurance. This temporary guarantee will only cover your monthly payments if your disability or death occurs before the end of the loan.
As for the long-term care insurance contract, generally to be taken out before the age of 70, it provides for the payment of a capital or an annuity as soon as your state of health deteriorates significantly and lastingly, until the end of the period. your life.
Finally, funeral insurance aims exclusively to finance, or even organize, your future funeral during your lifetime.
Whatever your state of health at the time of subscription
Faux. It’s quite the opposite. Insofar as provident insurance aims to take over in the event of a health problem, companies require a minima that you fill out a health questionnaire to check that you are not too high a risk.
Depending on the answers given, you may also need to perform medical tests or examinations. The more you are considered a subject at risk, the more the cost of the protection will be high or the guarantees limited.
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