Specific guarantees in life insurance policies
Life insurance policies offer great flexibility, allowing policyholders to add various specific guarantees to meet particular needs. These guarantees add additional protection that can cover various risks, from disability to unemployment, and include options for early withdrawal or protections in case of accidental death.
All-cause death benefit
The all-cause death benefit is one of the most common guarantees in life insurance policies. It ensures the payment of the capital or annuity provided for in the contract in the event of the insured's death, whatever the cause. This type of guarantee is often included as standard, but can be enhanced by additional options, such as doubling the capital in the event of accidental death.
Accidental death benefit
The accidental death benefit provides increased protection in the event of death resulting from an accident. It often provides for a higher capital compared to the standard death benefit. This option is particularly popular with policyholders in high-risk professions or who engage in dangerous activities.
Permanent and total disability benefit (PTD)
The permanent and total disability benefit provides for the payment of capital or an annuity in the event of a disability that renders the insured unable to work in any capacity. This benefit can be crucial in maintaining a standard of living in the event of income loss due to disability.
Professional disability benefit
This specific benefit covers the risk of a disability preventing the insured from practicing their usual profession. Unlike PTD, it is often more flexible and tailored to people working in professions that require specific skills, such as surgeons or artists.
Numerical example
A 45-year-old surgeon takes out life insurance with a professional disability guarantee covering €500,000 in the event of a disability that renders them unfit to practice surgery. If an accident or illness prevents them from continuing their career, this guarantee would allow them to receive this capital to compensate for income loss and retrain.
Unemployment guarantee
The unemployment guarantee provides coverage in the event of involuntary unemployment. Although less common, this option can be included to secure part of the policyholder's income, particularly to cover fixed costs like mortgage payments.
Dependency guarantee
The dependency guarantee provides for the payment of an annuity or capital in the event of the insured's loss of autonomy. This guarantee is particularly important for the elderly or those wishing to anticipate the costs related to potential future dependency.
Relevant statistics
According to the French Insurance Federation, around 15% of life insurance policies taken out in 2022 included a dependency guarantee, reflecting a growing awareness of the risks associated with aging.
Early withdrawal options
Life insurance policies may also include early withdrawal options, allowing partial or total surrender of the contract before its term, without penalties. This flexibility is particularly useful in the event of an urgent need for liquidity.
Conclusion
Specific guarantees in life insurance policies offer customized protection that can be tailored to the individual needs of each policyholder. Whether to cover risks related to disability, death, or unemployment, these guarantees help secure the future of the insured and their loved ones. It is recommended to carefully assess one's needs and consult an insurance advisor to choose the most suitable guarantees.
