Subscribers to this type of investment are free to use their savings on this product and at the desired time. But then, is there a suitable time to do it and what are the contraindications?
Understanding how life insurance redemption works
This is an operation which allows the subscriber to recover part or all of his savings at any time. as soon as he wishes, we then speak of withdrawal of capital. It is the Insurance Code, article L132-23 which provides details on this subject.
According to this text, establishments cannot oppose these acts. These can have varied shapes, as well as it is important to think carefully about your project before making a decision.
A subscriber who chooses a total surrender automatically terminates the contract. At this time, the organization pays the beneficiary the full amount of the capital valued on all media. When it is a fund in euros, the sum of the remuneration corresponds to the savings available on the date of the operation while on a support in units of account, it is equivalent to the equivalent value in euros and the number of units of account offered.
As part of a partial refund, the establishment simply pays the amount requested by the subscriber. As for the remaining capital, it continues to grow normally. Thanks to this option, beneficiaries can receive a regular income. In addition, they keep the profits from this investment, notably the seniority.
Total surrender of life insurance, what about the discount?
As part of this type of operation, the organization applies a reduction which affects the return of the fund in euros. On the other hand, this practice is not necessarily adopted in all companies. Indeed, some of them offer a reduction which is based on the last annual percentage served, in proportion to the time elapsed since January 1 of the year.
For other establishments, the revaluation of the fund in euros is done on the basis of a minimum profit sharing rate alerted at the start of the year.
It is even possible to find organizations which do not apply a discount as long as the fund is withdrawn in euros before the first remittance of the contribution to earnings prepared for the revaluation of the contract.
Whatever the strategy adopted by the insurance company, the system for calculating the fund’s remuneration in euros during the year of total redemption is not profitable for the subscriber.
Tips for avoiding penalties
It is important to find the right time to buy life insurance. To begin with, it is advisable to choose a partial refund and leave the minimum amount in the account so that it remains active. In this case, the subscriber receives the entire profit at the start of the following year.
Otherwise, it is preferable to wait until the actual payment of the contribution to the returns on the contract to make a total redemption, this operation often takes place during the month of January.
2024-03-08 20:07:29
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