Insurance is a contract by which an insurance company undertakes to pay the policyholder an annuity or compensation, in the event that he finds himself in an unpleasant situation.
In particular, against the payment of a premium, life insurance allows you to economically protect any event that occurs during the course of a man’s life .
The life insurance contract, both those against damages, is governed
WHAT DOES A LIFE INSURANCE CONTRACT MEAN? WHAT IS THE DIFFERENCE WITH THE CAPITALIZATION INSURANCE CONTRACT?
With the life insurance contract , the policyholder enjoys economic coverage, deriving from a premium paid to an insurance company; the latter, on its side, undertakes to pay the insured person a sum of money (the premium) proportionate to the accumulated payments. In this case it is possible to choose between the total payment in capital, or between the one given through the disbursement of an annuity: the premium is given when an event occurs, provided for in the insurance contract, involving the life of the insured. (death or survival).
The capitalization contract , on the other hand, consists of a financial transaction that allows the policyholder to enjoy a sum of money , given by the company based on the premium paid up to a certain date, regardless of the life span of the policyholder . Life Insurance Contract Explained
WHO ARE THE RELEVANT SUBJECTS TO SIGN UP A LIFE INSURANCE CONTRACT?
According to current legislation, the life insurance contract provides that, at the time of signing, four indispensable figures are very clear , namely the following:
the contractor , that is the one who stipulates the contract and assumes its obligations;
the insured , who is the effective holder of the risk, or the natural person who benefits from insurance on his / her life; this figure may or may not coincide with the contractor;
the beneficiary , or the person who can collect the insurance sum, following unforeseen life events;
the insurance company , or the company that pays the capital or the annuity provided for in the contract, when an unpleasant event occurs in the life of the insured.
The life insurance or capitalization contract can be considered concluded, therefore, it can guarantee the desired effects, only when the premium is paid, on the same day in which the policyholder receives the communication of the acceptance of the proposed practice by the company. insurance.
WHAT ARE THE BENEFITS OF LIFE INSURANCE?
Life policies enjoy a series of advantages, strictly linked to the immobilization and non- seizure of the sums that the Insurance Company undertakes to pay , in the event of an unfortunate event.
No executive or precautionary action can affect the sums owed to the policyholder and the beneficiary by the insurance. Furthermore, according to the provisions of articles 1923 and 2901 of the Civil Code , the provisions concerning the revocations of acts performed to the detriment of creditors are reserved, but this depends on the premium paid. Life Insurance Contract Explained..
The life policy insurance contract allows the policyholder to carry out a series of actions that allow the policyholder to decide on the assignment, pledge or lien : the policyholder, in fact, can assign the life policy contract to third parties, but can also pledge it or bind the sum insured.
However, you must pay close attention to these conditions, which must always be specified in the contract , either as annotations on the original copy, or in an appendix.
To provide a more specific discussion, the definitions of each possible action provided for in a life insurance contract are clarified below:
the assignment , or the transfer of the rights and duties envisaged by the policy for the policyholder, to a third party, who in effect takes the role of the first;
the pledge , i.e. when the policy is given as a guarantee;
the constraint , that is when the insured sum is tied in whole or in part, to guarantee a credit towards a person or an entity.
WHAT TREATMENT IS A LIFE INSURANCE CONTRACT IN CASE OF SUCCESSION?
In the event of a succession, life insurance policies allow you to enjoy a series of advantages, including the following:
the possibility to choose the beneficiary , indicating the preference on one or more persons destined to collect the insurance sum paid; the choice may also fall outside the legitimate inheritance, while respecting the respective quotas;
the exemption of the liquidated capital , in the event of premature death of the insured, both from personal income tax and from inheritance taxes.
WHAT DOCUMENTATION IS REQUIRED TO SIGN UP A LIFE INSURANCE CONTRACT?
To fully clarify what documentation is required for signing a life insurance contract, it is essential to make a distinction between the pre-contractual phase and the specific phase of stipulating the contract .
In the precontractual phase, it is up to the intermediary to deliver to the potential customer a whole series of information, contained within a specific file, in which it contains the following documents, which are also necessary in the subsequent phase:
the summary sheet;
the information note;
the insurance conditions, which must provide for the regulation of the internal fund (for unit-linked contracts) and the regulation of the internal separate management scheme (for re-valuable service contracts);
the glossary;
the proposal form.
The summary sheet must be regulated on the basis of the forms provided for by the various circulars, moreover, it must contain the necessary information regarding the characteristics of the guarantees, costs and any risks that the coverage of the insurance contract provides, as well as the description of the type of products offered.
The information note must be prepared in accordance with the provisions of circular 551/05 , suitable for each type of contract.
For contracts with profit sharing , the information note must also contain the sample project relating to the development of premiums, insurance benefits and reduction and redemption values.
This exemplary project is not mandatory for collective agreements , moreover, it, based on the hypothesis of return, does not guarantee any commitment on the part of the insurance company .
The Project provides for the discussion of the insurance conditions and the description of all the agreements that govern the contract, namely the following:
the proposal , with which the policyholder requests the company to stipulate a life insurance contract;
the policy , which represents the main document, containing the details of the policyholder, the insured and the beneficiaries, as well as the duration, the amount of the premium and the insured annuity;
the regulation of the Fund and the Management , on the other hand, consists of a document that allows a better understanding of the possible activities and the operating methods of the fund;
the appendix , which consists of a document issued after the contract and serves to modify some aspects of the same, again following the agreements made between the insurance company and the contracting party. Life Insurance Contract Explained..
WHAT TYPE OF PAYMENT IS PROVIDED FOR IN THE LIFE INSURANCE CONTRACT?
The insurance company provides for the payment of a premium, at the end of the payment period. The latter derive from the sum of the pure premium , i.e. the basic cost for coverage, added to the costs incurred by the company for the purchase and management of the contract and taxes (equal to 2.5% of the premium paid, no longer mandatory for contracts stipulated from 1 January 2001).
The payment of the premium can take place in a single solution , or periodically , divided over the whole year, with an amountwhich can be constant or variable based on contractual conditions.
In the case of a split premium, the increases must be indicated in the information note, otherwise the contractor is required to pay only the first installment, while he can suspend the payment of the following ones, according to the provisions of article 1924 of the code. civil . Life Insurance Contract Explained.
WHAT ARE THE TAX AND LEGAL ASPECTS OF THE LIFE INSURANCE CONTRACT?
The tax aspects , applicable to the life insurance contract, depend on the provisions of the legislative decree of February 18, 2000, n. 47 and are different based on the date of signing the contract: in any case they must be expressly declared in the information note of the contract.
As regards the legal aspects of the insurance contract , mention is made of some aspects, relating to specific situations, namely the following:
in the event that the policyholder decides to pledge the insurance premium or subject it to a lien, these operations require the written consent of the creditor or the obligee;
the rights of the insurance contract are valid for one year from the day on which the fact on which the right is based occurred, in accordance with the provisions of Article 2952 of the Civil Code ;
when the contractor has his habitual domicile in Italy, the contracts are governed by the law of our country, however, the parties can also agree on the prescriptions of another state.What are the regulatory aspects of the life insurance contract is clearly explained.
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Life Insurance Contract Explained..