The purpose of life insurance, as its name suggests, is to build up a sum of money that you will receive later in life, while you are still alive. It is based on a long-term vision and very often reaches its maturity at retirement age through the payment of a supplementary pension.
A non-mandatory but essential financial move to maintain our standard of living, once retired, as we are living longer and longer than before.
In most cases, the beneficiary of a life insurance policy is the policyholder.As for death insurance, its aim is to protect your family by paying them a sum of money that will allow them to continue to enjoy financial security if you leave this world prematurely. The beneficiaries are therefore your loved ones, spouse, and children mainly, or even stepchildren.
"},"textLinks":[{"text":"Read more in our article “Death insurance, also for inheritance tax?”","url":"/en/individuals/insurance/death-insurance-also-for-inheritance"}]},{"componentType":"paragraph","richBody":{"value":"Death is never excluded, whether we are in the life insurance or death insurance scenario. For this reason, most life insurance policies provide a death cover that meets the same objective as death insurance. This death cover therefore also has relatives as beneficiaries.
"}},{"componentType":"sectionTitle","title":"The beneficiary clause of your death cover – it can help keep the peace"},{"componentType":"paragraph","richBody":{"value":"Now, like many people, you will not just pass on your assets to the beneficiaries without worrying about how they will be shared, as this approach could also divide your family. If you could imagine this happening in your family, stay with us and let us guide you.
Upon death, all your beneficiaries (including legal entities) designated in the policy will collect the capital. This is why it is important to write the so-called 'beneficiary clause' of the contract correctly, which will avoid any discussions later.
Who is the beneficiary?
Several scenarios are possible and will have an impact on the transfer of assets.
How to designate your beneficiaries?
The way in which the beneficiary is designated will not be neutral in terms of inheritance sharing. Let’s assume that you have chosen your offspring as beneficiary and that you name them.
Fortunately, there is a way to do better to benefit everyone: this is the generic designation: for example "the children of the policyholder".
Sharing will be fairer and more sustainable.
Scenario #1: in the event of death, Lou’s deceased share will be divided between her children. In the second, Lou inherits his share of the capital. In the latter, it is Gaston’s children who will be in line to inherit.
It is possible to combine several types of beneficiaries, as well as to set the order or percentages, e.g.: “40% for the children of the policyholder”. After that: “50% for the partner” or “10% for the siblings” of the policyholder.
"}}]},"hasMacro":false,"id":"834c7adc-8a57-4766-8a04-a35bf9927538","localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"Simulate and buy your insurance","url":"/en/individuals/insurance"}},"componentType":"editorialHeader","coreHeader":{"body":"Both life insurance and death insurance consist of providing a deferred capital to the beneficiary. But what exactly are they used for? Are the beneficiaries the same? \r\nNo, not really, you’re not sure. As life and death insurance policies have separate purposes, the difference is also found at the level of the beneficiaries.","subtitle":"Are the purposes and beneficiaries of death insurance comparable to those of life insurance? What do you need to bear in mind? Why is the beneficiary clause so important? ING will help you.","title":"Life and death insurance: who benefits from it?"},"date":"2024-02-14","readingTime":0},"publishDate":"2024-02-14T12:43:59.918+01:00"}}