Incapacity, invalidity, death… A pension insurance contract covers you against all the inconveniences of everyday life and guarantees pensions for your children, in the event of disappearance. If the causes of a termination can be various, procedures are to be put in place to carry out these procedures with efficiency and precision. Stéphane Broggi, insurance broker, helps you see things more clearly.
Why terminate a company pension contract?
As Stéphane Broggi tells us, “the first draft of termination takes place because another risk must be taken in place.” He explains to us that “for the executive college, company insurance is compulsory”, which authorizes the company to terminate “on condition that she signs another contract.”
According to him, “90% of terminations are due to competition prospecting“, who proposes “a contract with different guarantees“, knowing that “each company is a member of a collective agreement and that it must respect it.” He tells us that there may “be other terminations for cases of force majeure such as the disappearance of a company, its change of address or a change in activity.”
When should you terminate your company pension contract?
Stéphane Broggi, insurance broker, discusses the cancellation procedure pension contract. For the moment, “pension cancellations are done automatically on the anniversary date, with notice, depending on the case, of two months.” He adds that, generally, “the anniversary date is set on January 1” before warning about the deadlines specific to certain mutuals, which require a period “of three months instead of two months.”
Before starting your steps, Stéphane Broggi recommends to “read the general conditions of each contract carefully.” To terminate his provident insurance contract, he recalls, at the same time, to “notify the contract references“not forgetting to”respect the notice” and of “favor the sending of a registered letter with acknowledgment of receipt.” He explains that one should not hesitate to consult “the model letters appearing on the Internet”, while returning to the ease of the process.
What happens to the benefits of the terminated contract?
Stéphane Broggi mentions that “Companies can terminate the contract in the event of an unsatisfactory risk, claims experience or because they wish to withdraw from professional corporations.” The collective contracts “are managed by the companies directly and it is they who decide if they want to compete.”
When a company pension contract is terminated, the benefits remain acquired. Stéphane Broggi explains that “if there are contributions paid in advance and the contract ends during the year, they are refundable in proportion to what is overpaid.” He concludes by detailing this scenario: “A company that moves on July 15, for example, can terminate its contract in relation to a change of address. If she has paid the quarter, often paid in advance, it can be reimbursed.