LR: Life insurance and inflation


The so-called Sapin 2 law allows the public authorities to suspend redemptions on life insurance contracts. (© DR)

With the return of inflation, secure your life insurance contracts.

The characteristics of French life insurance:

life insurance contracts governed by French law have very curious characteristics.

Three are particularly worth mentioning:

1 – entrants into what is known as the “euro fund” of the insurance company are entered at the book value of the fund’s assets and not at their market value, which is however a rule universally respected;

2 – the capital represented by the euro fund benefits from a full and complete guarantee, but the insurance company must still have the necessary resources to meet its commitments, if necessary;

3 – finally, we must remember that the subscriber-insured of a life insurance contract is not the owner of the assets contained in the contract – euro funds and units of account – but only the holder of a claim on the insurance company. a claim for an amount equal to the value of the assets, which are the property of the company.

Consequences of these characteristics

These characteristics lead to the following consequences:

1 – if the life insurance company goes bankrupt, the holder of the life insurance contract is an unsecured creditor like the others and the insurance guarantee fund only covers it up to 70,000

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