To the shock caused by the death of a loved one is added the financial worries resulting from the organization of his funeral. Taking out appropriate funeral insurance will free you from this.
Two types of contracts
There are in fact two kinds, the purpose of which is not the same. If you take out a capital funeral insurance contract, taken out with an insurance company or a bank, you will have to determine the amount you intend to devote to the organization of your funeral.
You thus ensure the beneficiary of the contract a guaranteed capital, which will allow him to pay all the funeral expenses. The average capital given to your loved ones most often varies between 3,500 and 5,000 euros. The current regulations provide the subscriber with an additional guarantee. It obliges the beneficiary to devote all of the paid-in capital to the payment of funeral expenses.
However, if this capital exceeds the amount of the expenses, the beneficiary may, under certain conditions, use the surplus as he sees fit. The funeral insurance contract in benefits does not have the same characteristics. In fact, its nature is twofold. It first provides for an insurance contract, taken out with an approved organization, which provides for the financing of the funeral. It then includes, added to the first, a service contract, signed with a funeral operator.
The latter will submit a detailed estimate to the subscriber, which will inform him precisely of the services requested. You can in particular opt for a cremation, choose the coffin and the funeral inscription or even wish the presence of pallbearers. This type of contract therefore makes it possible to guarantee the financing of your funeral and, at the same time, to ensure the whole organization. He relieves the loved ones of all worries. On all these points, the site lassurance-obseques.fr will give you additional information.
Be careful not to confuse death insurance and funeral insurance. If they both depend on the same taxation as life insurance, they are two contracts that have absolutely nothing to do.
The other characters
If you choose a funeral insurance contract in capital, you will have to designate the beneficiary. It is to him that will be paid the capital which will make it possible to regulate the funeral expenses. Choose someone you trust. This will most often be a family member or friend.
But nothing prevents you from preferring an organization, such as a funeral company for example. You can also change the beneficiary at any time. You will then need to determine the amount of your insurance premiums and how you will pay them. You can pay this payment all at once, or prefer a temporary contribution, which will be spread over time. In this case, the payment period generally varies between five and ten years.
As for the life contribution, it will be paid until the death of the subscriber. So that, if you are still young at the time of the subscription, you risk accumulating a capital largely exceeding the sum necessary to the payment of the funeral expenses. On the Lassurance-obseques.fr website, you will find essential information on the taxation of these contracts. Depending on the age of the subscriber and the amount of the capital, the latter may be exempt from any inheritance tax.
