Permanent Life Insurance
You will be covered by a permanent life insurance if you subscribe to one whole life insurance, a universal life insurance or a contract with capital variable. All these formulas cover your life during, in condition that the police is maintained into force.
Principal characteristics of permanent insurance policies
Leveled premiums: Majority of permanent insurance policy envisage payment of premiums who remain the same ones for all the length of the contract time, even if risk grows with the age. This is why, the first years, the premiums are higher than the risk you represent. Then the mathematics provisions form, invested, allow, last years, to face the higher risk that you represent because of your age.
Surrender value: Of these provisions the surrender value results, that you can use if you wish to borrow on your police or to box if you want to repurchase your contract. (In general, the repurchase value is not added to the capital poured with your death.)
Options of not-forfeiture contract: They are various possibilities which are offered to a police holder which ceases pouring its premiums. They make it possible to maintain the insurance police in force or to touch the surrender value with cash.
Life Insurance with participation: The holder of this kind of police take part in the financial results of the insurer. “Participations” (in benefit) are versed annually to the holders. The premiums are calculated according to a careful expenses estimate and future payments, as well as interests and other placement incomes. When the results are better than the forecasts, it create a surplus, which allows company to pour participations to the concerned holders. The participations is based on an estimate of the future results, like the costs and the incomes and they are not guaranteed. The participations can be boxed, left in deposit, used to reduce the premiums or affected to subscription of an additional protection.
Life Insurance without participation: Holders of this kind of police do not take part for the benefits of insurance company and do not receive any participations.
Various types of permanent insurance: Although all insurance policies, permanent life aim to provide coverage your life during, the guarantees of which they are matched can vary and influences premiums.
Whole life: It is the traditional police who fully guarantees the premiums to be paid, the death capital and the repurchase value.
Life Insurance Police related to the interest rates: Contrary to the whole life insurance policies, which is based on hypothetical interest rates to very long term, these police hold count current interest rates, which can be readjusted regularly. The holder of police can profit higher coverage for lower premium, but on the other hand agrees to share certain risks with the insurer. Premium could indeed increase following a fall in the interest rates, or being reduced if it opposite occurred. Most popular police related to interest rate, and that offering more flexibility, is the universal life insurance policy. It comprises two elements: the life insurance and placement account. You decide the EC what you want to do of these two elements, and can increase or to write-off your premiums or your death capital, taking into account some limits. Incomes generated by the account of placement are not necessarily without guaranteed; all depends on the nature of the selected placements. Usually, contracts known as evolutionary premium and it guarantee death benefit for one determined period and envisage modification of premium or of the death benefit at the end of this period, according to market trends.
Contract with variable capital: The premium is generally guaranteed, but the surrender value varies according to the output of placement funds or another index. The death capital can be guaranteed, or fluctuate according to the output of melt, subject to a minimal guarantee.