Foresight: how does it work? |

Accidents at work, everyday accidents, illness, loss of autonomy… If you cannot control or anticipate these vagaries of life, you can protect yourself and your loved ones from their financial consequences. To do this, consider signing a pension agreement.

This type of insurance guarantees you financial protection in the event of a deterioration in your health condition. In some cases, it may also provide you with appropriate equipment and services.

A pension agreement can contain separate guarantees and take different forms such as borrower insurance, accident guarantee insurance, funeral insurance and long-term care insurance. It generally covers risks related to incapacity, invalidity, loss of autonomy and death.

The ITT guarantee and disability

The temporary incapacity guarantee (ITT) covers the risk associated with total and temporary incapacity to perform one’s work and receive income from it. This situation can follow an illness or an accident.

Depending on the offer, it may also include partial incapacity for work, which corresponds to the establishment of a therapeutic half-time.

The risk of disability covered by pension contracts corresponds to a reduction in the insured’s ability to work. However, unlike ITT, this health condition is permanent.

In addition to total permanent disability, which obliges the insured to stop working, contracts may also include partial permanent disability, which refers to situations where the insured is able to work. To determine this invalidity, the insurance company uses its own scale, which may differ from that of Social Security. In most cases, the insured’s disability triggers the payment of a monthly or quarterly pension from the insurance organization.

Loss of autonomy and death

The total and irreversible loss of autonomy (PTIA), or absolute and permanent disability (IAD), covered by certain maintenance contracts, amounts to a severe disability. This is a health condition that no longer allows the insured to practice a profession or even to carry out certain activities. The PTIA also requires the insured to be assisted by a third party to carry out common daily activities, such as eating, bathing, dressing and walking.

Again, insurance companies often define their own criteria to characterize this condition and without necessarily following that of Social Security.

The death guarantee stipulates that the insurance company pays a lump sum to the next of kin or relatives designated as beneficiaries. This payout is triggered in the event of the insured’s death, whether as a result of an accident or illness. However, it is important to check the contractual exclusion clauses, which may exclude certain causes of death.

As for the beneficiary(ies), it is when drafting the beneficiary clause that the insured chooses them. The capital paid to them may be a fixed amount determined in advance or may be derived from a calculation formula (eg X% of a reference salary).

Maintenance contracts may also contain provisions for the payment of an annuity to the beneficiary(ies). This pension, which is paid to the surviving spouse, can be temporary or lifelong, i.e. paid until the latter’s death. It can also be a so-called “educational” pension for the benefit of children who are considered still dependent, under the age of 18 or 25, depending on the terms of the contract.

How to subscribe?

When it is individual, the pension insurance is taken out directly by the insured with an insurance organization or an insurance intermediary. When membership of the contract is collective and compulsory, it is signed by an employer on behalf of his employees. When it is a contract with collective and optional membership, it is signed by a legal person such as an association or an employer.

Before you sign an individual pension agreement, you must basically answer a questionnaire about your state of health. In some cases, additional medical analyzes may be requested. If, on the other hand, it is a collective agreement entered into by your employer, you must not disclose your state of health.

Finally, depending on what you need and what you are looking for, there is nothing to prevent you from taking out several pension contracts depending on the guarantees that each offer offers.

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