Viager integrated into life insurance: what is it?

Life insurance isone of the French’s favorite investments for several years now. Although the expected return is not very high, the subscribers’ capital is more or less secure.

In addition, there are still certain tax advantages. For seniors, other benefits are worth noting. It will be possible to opt for a contract with an annuity. A relevant principle that will help many pensioners to support themselves better.

This is how the annuity in life insurance works

To better understand the interest in the attachment to the annuity, it is imperative to remember how life insurance works. This is an account opened with a specialized company, which must be financed by the subscriber by paying a regular contribution. The accumulated capital will then generate interest in the order of approx. 1.30% per annum.

It is thus possible to buy back your contract after a few years. If it is full, the member will be able to collect all his premiums plus interest. Moreover, if the redemption is partial, only a part of the funds is withdrawn and the rest continues to grow. The contract may terminate on a specified date or upon the holder’s death. In the second case, a designated beneficiary will receive the capital raised.

For an annuity exit, the insurance company therefore buys back the capital. However, it then undertakes to continuously pay a certain sum to the subscriber until the latter dies. It is possible to choose between a monthly, quarterly or annual payment, depending on what has been agreed.

Advantages of this product

First of all, you need to know that the capital itself no longer belongs to the subscriber, but to his insurance company. If the first city then decides to opt for an annuity, it will no longer have the right to make a lump sum withdrawal of the remaining money. The choice is irreversible. Moreover, no transmission will be authorized, the recipient clause will be void.

However, this strategy makes it possible to ensure a return of income until the death of the subscriber. What then will complete his retirement and thus increase his purchasing power, burdened by the cessation of his professional activity.

Moreover, the amount paid periodically does not change. There will be no possibility of downward adjustment. Some insurance companies even offer increases under certain conditions (must be checked). A way to be quiet until the end of his life.

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