With a life that costs more expensive, parents are looking for Christmas gifts that are original and practical to offer their children. Some have had the idea to open a savings passbook, while others have not thought to their life insurance.
The savings book
Have a savings book to help children and adolescents to become more responsible. This already gives the opportunity to save some money to achieve some of their project. It should not, however, rule out a few constraints that this implies as to have a booklet, when a minor is not always very profitable, especially as the level of compensation rises only to 0.75 %.
It is because of this that some parents and grand-parents have opted for another way a lot more advantageous : life insurance.
The benefits of a life insurance as early as childhood or adolescence
Life insurance is not only advantageous in the event of the death of, or serious accident. It comes at different stages of life when one is in need of funds more or less important. And this, parents and grand-parents have understood this. That is why, put a life insurance policy is in the name of a minor child or a teenager becomes an investment very advantageous.
This contract allows the beneficiary to have a financial fund available to fund certain projects, such as a driving test or even teaching at the university. In addition, the fact of starting the saving process early allows access to the mature tax during the best years of the beneficiary. As a reminder, this maturity is reached eight years following the establishment of the life insurance. Parents and grandparents can apply for this scheme with the insurance agencies-life by appealing to a contract designated under the adjective of» inter-generational «. It will be established from a gift of money.
The inter-generational contract with less formalities
Since the contracts between generations are a process proposed mainly to grandparents, the insurers have done so to facilitate the formalities. It is enough, actually to fill in a tax form 2735 and a membership form.
Grandparents can, subsequently, to deposit a certain sum on the account in the name of their grandchildren and allow them to subscribe to a life insurance. In the case where the beneficiary is a minor, the parents are considered legal representatives. A written authorization on their part is indispensable, therefore, in view of the opening of the life insurance. If the child has passed the milestone of 12 years, the same document is necessary to carry out the implementation of the insurance.
In addition, parents can also establish an inter-generational contract for their children.
The covenant deputy: a document that gives full powers to the grandparents
The inter-generational contract has a document that offers the full-powers of the pay of the grandchild to its grandparents. This document is called the covenant deputy. It allows the grandparents to establish the different ways in which the financial gift will be spent. They may impose one or more specific projects, for example the funding of studies of the beneficiary, the purchase of a car, and other.
With this pact deputy, they also establish a lock-in clause that does not allow the grandchild to make redemptions.
This clause does not take effect for a fixed period, from a specific age of the beneficiary. E, in principle, it is only effective up to 25 years of the beneficiary and with evidence on the legitimacy of the clause.
For this is the covenant, deputy, insurers have at their disposal a model already pre-determined. Its content can be changed according to the needs of grandparents who have made the contract. To do this, it is enough to call for the legal services of the life insurance agency. From the covenant, deputy, the grand-parents may request exclusivity for the management of the nest egg established. They will have to do this, define the various implementation projects and the allocation of the donation compared to those.
An intergenerational contract can be done at the request
Any parent or grand-parent has the possibility of opening a savings contract in favour of a minor child. An inter-generational contract is not necessarily proposed by the insurers, it can be established on demand with the assistance of the legal department of the agency for the establishment of a covenant assistant. Some agencies offer a direct possibility of recourse to an inter-generational contract, but parents or grandparents can just as well choose a contract classic.
The selection criteria for a contract of life insurance for a grandchild
Insurance agencies-life are more numerous now. However, it is important to take into account certain criteria in order to be certain of having chosen the right insurer and the best formula. Here are a few criteria not to be overlooked:
– the inexistence or weakness of costs of payments in order to allow the recipient to make deposits to be profitable in the future
– the profitability of the media in units of account in addition to a funds in euros available
– the existence of management mandates to bequeath a part of the nest egg to an independent agency. This process is proposed when the savings fund reaches a certain amount
– the modernity of the services of the insurer in line with the technology which will benefit the child for years to come, including the models with processes that remote management via the internet