How long does it take to recover the sum placed on a life insurance contract?

Wondering how quickly it takes to get the money back from a life insurance policy? Whether you are the beneficiary of a deceased insured or the subscriber of a life insurance policy, here is how to recover the funds that are due and by what time frame.

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Life insurance, a savings model considered by all observers to be the preferred investment of the French. If we consider that life insurance contracts are intended to provide for a particular event or to prepare for the transmission of one’s assets, it is quite possible to recover all or part of the assets available on this type of investment. But many of us still do not know what is the duration of payment of capital, after redemption, into the checking account.

How to buy back a life insurance contract?

We speak of redemption on life insurance when the contract is the subject of a request for payment to a support account. In reality, it is neither more nor less than one-off transfers that the customer can decide to make when he wishes (as on passbooks or on a housing savings plan for example). If we will not discuss in this article the taxation related to the reimbursement of life insurance, know that it is enough to sign an endorsement to order your redemptions.

To do this, simply go to the bank branch holding your contracts to carry out the operation.

How much does it cost to buy back a life insurance policy?

The total or partial redemption is totally free. Even if in the general spirit it is impossible to recover all of your capital when you ask to find your money. Note that the pricing does not apply to the operation itself, but only to the taxation of interest acquired during the entire savings period, and only on this interest. In the event that your life insurance contract has been diversified on a part in action, there is a probability of financial loss linked to the lower value of your support. In order to correctly estimate the amount paid at the end of your life insurance contract, we invite you to make an appointment with your account manager.

The time needed to unblock a life insurance contract in reality

Almost all life insurance contracts are held by a management company (or subsidiary) independent of the bank in which your contract was opened.

This fact, if may seem trivial, partly explains why it is always longer to recover the money placed in your life insurance than in another savings book.

So count on average:

  • 8 days to 15 days to receive the repurchase payment of a life insurance

and see the corresponding amount appear on the related bank account.

Legal deadlines, what the insurance code says

It is possible to recover the money from your life insurance at any time, in the form of total or partial redemption or by transforming his savings into regular income for life (life annuity).

To recover the total or partial capital invested in your life insurance, the first step is to express your request in the form of a registered letter with acknowledgment of receipt to be sent to your insurer. In this letter, specify the date of the request, your contact details, the number of your life insurance contract as well as the amount in figures and then in words of the money you wish to release.

In accordance with the Insurance Code, the organization with which you have taken out your life insurance has a period of 2 months after notification of the acknowledgment of receipt to return the requested money to you. Beyond these 2 months of legal delay, the insurer owes you late payment interest. Many life insurances shorten this period to 30 days, specifying it in their general conditions of sale.

In practice, a partial redemption request from a banking organization with a complete and uncomplicated request file is generally effective in a delay of one to 2 weeks after receipt of the request. In the case of a total surrender, the procedure is more complicated since it is a definitive breach of contract, and the deadlines can therefore lengthen.

Regarding online life insurance, they are subject to reduced deadlines (3 to 15 days maximum in general).

Before redeeming (or withdrawing) your life insurance capital, think carefully about the issues. Note in particular that a withdrawal made before a recommended period of 8 years of savings (period from which tax exemptions and other tax benefits are triggered) gives rise to taxation on the interest generated. If you wait at least 8 years before redeeming your capital, the interest acquired since the subscription is tax exempt.

Recover the funds following the death of the insured, How long ?

Payment Deadline for Heritage Life Insurance

In the event that you are the beneficiary of life insurance following the death of the subscriber, be aware that the release of funds for the benefit of the heirs generally takes more time. Life insurance is indeed a tool for transmitting wealth and is therefore the subject of extensive checks and procedures.

Following the death of the life insurance contractor, the insurer must contact the designated beneficiary (ies) within a maximum period of 15 days after receipt of the death notice. The latter are then responsible for providing the insurance body with certain documents necessary for the constitution of the file such as proof of identity and tax certificates.

Once all the necessary documents have been received and the fund release file completed, the insurer is responsible for paying the life insurance capital to the beneficiaries. within one month after validation of the file.

When the insurer does not communicate to the heirs the list of documents requested for the release of funds within the prescribed period of 15 days, it then owes them interest. The Insurance Code stipulates that the capital bears interest at double the legal rate for 1 month after maturity, before tripling. The same applies if the insurer has not returned the funds within the legal period of one month after receipt of the complete file.

Sometimes estates are complex and files take a long time to complete. In all cases, the insurer is required to pay the interest corresponding to the unpaid capital. no later than one year after the death of the life insurance policyholder.