Life insurance: Benefits of joint underwriting

By taking out life insurance together, the couple can maintain the purchasing power of their surviving spouse. Unknown mode of membership to discover.

Manage your assets as a duo with confidence. Some couples need to share everything, including their investment. Life insurance co-subscriptions provide them with the ideal tool. Also known as joint membership, it consists of two people who are in a single contract funded by a common fund.

It was widespread until the early 2000s (thousands of couples still have joint subscriptions), and this practice has been somewhat depleted, especially since the 2007 Tepa Act exempted surviving spouses from taking over. did.

However, if you are married under a community structure (such as 90% of couples), you have the option of considering opening a communal life insurance policy. There are two scenarios.

The result of dying first

In fact, insurance companies limit co-enrollment with the first death settlement to couples married under a community structure. Death capital becomes the property of the surviving spouse, even if the saved funds come from money common to the spouse. (1)..

In most cases, the beneficiary clause is divided into a surviving spouse who acquires usufruct of capital and a child who regains naked ownership. The capital received by the surviving spouse will be returned to the child if he dies under tax conditions.

Our opinion: The spouse must agree to manage the savings of this contract. This requires double signing of payments, redemptions, arbitrations, especially beneficiary clause operations. The latter cannot be changed without other consent. This is a big difference when compared to two separate contracts where neither spouse is guaranteed to change the beneficiary clause later for the benefit of the foreigner.

I want to know: This binding form of double signature interferes with most online operations.

The result of the second death

The co-subscription settled on the second death is intended for couples married under a universal community regime, with provisions that give the surviving spouse a complete community or settling clause. Even if the first spouse dies, the contract will continue and bear fruit.

advantage: The tax advancement of the contract is maintained, which is especially useful if the surviving spouse is over 70 years old. If he dies in turn, the beneficiary (for example, a child) will receive a death benefit.

Our opinion: If a second death settlement protects the surviving spouse, it will benefit from an inheritance tax cut of € 152,500 instead of twice if the two spouses each have a life insurance policy. Only once. Another drawback: If you get divorced, you will have to liquidate your life insurance, which makes joint management difficult. Similarly, management becomes a frank issue if one of the spouses becomes “incompetent” and finds himself a guardian of her.

((((1) Except for clearly required insurance premiums.


Split joint subscription

Olivier Rozenfeld, President of Fidroit, emphasizes the dismantled co-subscription. Attention, he warns, the beneficiary of the usufruct, as the naked owner must be the insured of the contract and the usufruct may himself be excluded from the interests of the contract. Must be specified.

A sophisticated asset package that is likely to be booked for some specific circumstances.