Insurance often evokes feelings of financial insecurity. Some people find there a way to steal money from others and others don’t know what it is for. However, by signing an insurance contract , we put a good part of our money in good hands.This makes it possible, over a long period of time, to build up savings and also to insure against possible risks , depending on the type of insurance chosen: personal insurance, property or loss insurance and insurance of activity.
Taking out insurance also presents advantages , still unknown to the public, in terms of security, taxation and profitability. But rest assured, we’ll explain it to you.
How can insurance pay off? Insurance, in practice, is a contract by which the insurer undertakes to pay a certain sum to the insured on the occurrence of a risk by paying a contribution or a premium on a periodic basis. There are several types of insurance, but all allow the insured to benefit from a certain profitability , from an early and well-deserved retirement .
Some insurance plans are compulsory. But whether it is for a repair due to a disaster, or an unfortunate event or just by the end of the term (retirement for example), the insurance always benefits the insured, during his life and even after (case of life insurance). In fact, foresight, health or claims compensation all come from the capital paid by the insured for years. Even if in the end, no damage was suffered, fortunately, the insured can still claim compensation for the paid-up capital with interest, or in the case of life insurance, transfer the amount to the beneficiary of his choice. .
For property insurance, we recognize the need to be insured, when the flood is too high or during encumbered. A lot of equipment is destroyed and our vehicles are among the first. Profitability is found in the reimbursement of the price of the destroyed property (s). To find out more , follow the following link.
A definite tax advantage
We don’t talk about it enough, yet insurance offers a considerable tax advantage .
The case of life insurance helps to illustrate this. Indeed, upon the death of the insured, the beneficiary receives the sums paid outside the estate. These will therefore be transferred to him without any tax or tax, up to € 152,500 per person if the insured has saved them with his insurer before his 70th birthday.
In the event of a withdrawal or redemption, the taxable rate has been set by the fixed withholding tax in order to guarantee a low-tax deduction:
flat rate: 35% before 4 years, 15% between 4 and 8 years and 7.8% after 8 years;
allowance: after 8 years, out of € 4,600 (single person) or € 9,200 (married couple) of the interest portion of the withdrawal;
Partial withdrawal: taxation applies only to the interest portion and not to the capital portion.
In fact, all products with capitalized interest are not taxable for the duration of the contract. Interesting, isn’t it? It gives us a real idea of what insurance is.
The insured can also request an advance when he provides proof of a real urgent need for money. In this case, it should be noted that these advances are not taxable . This makes perfect sense, given the state of emergency of the request. Be careful, however, as the insurance contract clearly stipulates a periodic contribution, you will have to repay its advances with the additional capital advanced.
The feeling of uncertainty and fear when the arrival of a danger, an accident or even a risk becomes less important when we know that we will still be insured, and that the amount lost we will come back after. Far from us the idea of causing an accident, it will be an insurance fraud punishable by heavy penalty, but it is good to know to be safe .
In a sense, safety adds to profitability. But when you think about it, the magic of insurance is that the procedures have been made easier to not only increase the number of subscribers, but also an evolution in the very concept of insurance. We cite for example the non-existence of an amount limit, no maximum and minimum, the indefinite duration of the insurance, the possibility of redemption subject to the free choice of the parties, etc .