Classification of life insurance

Contracts of life insurance can be grouped into three categories, depending on the insurance risk relating to the length of human life.

On the one hand there is insurance in case of life concerning the possibility of survival of the insured and, secondly, insurance in case of death concerning the possibility of the death of the insured.

Finally, the so-called mixed insurance that combine in a single font, the two contingencies of death and survival of the insured.

1 - Life insurance in case of life

The objective of this contract is essentially the creation of a capital or an annuity to which the member shall be entitled to a specified date.

The future event is considered for the contract is the occurrence of a specified date or a specific age when the insured is still alive.

The insurer agrees, for payment of a premium, to pay a sum of money specified in the contract if the insured is still alive at that date. Conversely, if the insured died at the specified date, the commitment of the insurer ends.

There are several types of life insurance in case of life:

1.1-assurance endowment

In consideration of a single premium or regular, the insurer is required to pay the sum insured if the insured is still alive on a date or a specific age. Conversely, if predecease the insured, the insurer is finally released from any obligation to pay.

* The risk to the insurer is the survival of the insured.

* The risk to the participant is the death of the insured before the end of the contract.

This formula allows the member to be a guaranteed capital to be paid to him on a specific date.

The 1.2-deferred pension insurance

Rather than engaging as in the above formula to pay a capital if the insured is still alive at the end of the contract, the insurer agrees to pay an annuity.

In case of decease of the insured, the insurer is permanently released from its payment obligations, unless the member has attached to the contract against an insurance.

1.3-The immediate annuity insurance

In exchange for a paid-up capital in underwriting, the insurer agrees to provide an immediate annuity periodically subject to the survival of the insured to each maturity.

The insured and the beneficiary of the annuity may be two distinct persons, but in practice it is usually a single person.

The 1.4-against-insurance

A contract of endowment insurance or deferred annuity may be stipulated with cons-insurance. The subscriber will guarantee against the risk of death of the insured. If he dies before the scheduled date, the insurer will reimburse the member the total premiums paid.

2 - Life insurance in case of death

This is a contingency contract for the establishment of a capital to benefit third parties appointed after the death of the insured.

This insurance covers the risk of death of the insured.

There are:

2.1-The term life insurance

The insurer shall pay a lump sum to the designated beneficiary if the insured dies before the term specified in the contract.

The insurer is definitely clear if the death occurs after the date agreed in the contract.

The objective of this type of contract is to consolidate the financial position of a family on the death of one of its members. It can also guarantee a creditor of the repayment of money borrowed by the insured.

The 2.2-insurance death benefit "whole life"

In this type of contract the principal is paid regardless of the date of death of the insured.

Premiums paid by the subscriber can be:

- Lifetime is to say, spread over the life of the insured.

- Temporary is to say that payments are made for a certain period of the contract,

- Unique and in this case the regulation is to be performed once.

2.3-assurance of survival

In such contracts the insurer undertakes to pay the death of the insured capital or an annuity determined provided that the beneficiary is alive on that date.

If the beneficiary predeceases the insured, the insurer keeps all the premiums.

The member retains the ability to take a cons-insurance, forcing the insurer to refund premiums previously paid.

2.4-Counter Insurance

A term life insurance, whole life insurance or insurance of survival can be set against with insurance. Indeed, in such a contract, the participant runs the risk of paying premiums to no avail. Insurance against the then allows the reimbursement of premiums paid to the insured if it does not die during the guarantee period or dies before the date of the deferred or if the beneficiary predeceases the insured.

3 - The endowment

It's an insurance policy that combines the benefits in the event of life and security in the event of death.

The insurer agrees, in exchange for a premium to pay a certain sum on a specified date or the insured himself or others if he is still alive or if he dies before that date to beneficiaries designated by him.

Specifically, if the insured is still alive at the time of settlement of the contract, the principal will be paid. In case of death of the insured, the beneficiaries can benefit from this capital.

The essential difference between the endowment and life insurance in case of with-insurance is against the level of the insurer's obligations vis-à-vis the beneficiaries predeceased the insured is required because, in the first case, the payment of a capital or an annuity under the same conditions as those caused by the insured in case of life, and in the latter case, the simple repayment of all or part of premiums paid.