Life insurance policy: underwriting

Verified 21 November 2025 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

Is life insurance a savings or insurance product? It's a bit like the two. This is a contract where you ask the insurer, to whom you pay contributions, to pay a sum of money to a beneficiary when an event related to your life occurs. We present the rules applicable at the time of the conclusion of a life insurance contract.

Life insurance is a contract by which the insurer undertakes, in return for the payment of bonuses, to pay a capital or annuity to one or more persons who are beneficiaries.

The duration of the contract concluded by the subscriber depends on the life of theinsured. Insurance benefits will be paid in the event of the death of the insured or at the end of the contract in the event of the insured's survival.

Most often, the policyholder and the insured are the same person. If the subscriber himself recovers the sums saved at the end of the contract, he is both subscriber, insured and beneficiary. Depending on the objective, you have the choice between 3 categories of contracts: contract in case of life, contract in case of death, or mixed contract, life and death.

Life Contract

Life insurance allows you to build up a savings in the period that will be paid to you at a specified age.

If you are alive at the end of the contract, the insurer pays you capital or annuity planned.

To avoid the loss of sums paid by the insured if he dies before the set age, this type of contract is often supplemented by a counter-insurance death, which obliges the insurer to pay a capital to the designated beneficiaries, even in case of death of the insured before the end of the contract.

You freely determine the duration of the contract.

Death contract

Death insurance provides protection for your loved ones. It is the death of the insured that triggers the insurer's payments. There are 2 types of contracts:

  • In the “ temporary contract death ”, the insurer undertakes to pay a principal or annuity to the beneficiaries you have designated, if you die during a specified period. For example, if you die before the end of your bank credit or before your children have finished their studies.
  • THEdeath insurance of a “life-entire contract” ” commits the insurer to pay a principal or annuity to the beneficiaries you have designated, regardless of the date of your death. The price of this contract of indefinite duration is calculated by reference to the life expectancy of the insured at the time of conclusion of the contract.

Life and death contract

The contract in case of life and death makes it possible to build up a long-term savings for you or your beneficiaries and to protect your loved ones by ensuring the transmission of a capital or the payment of an annuity.

If you are alive at the end of the contract, the insurer undertakes to pay you a principal or annuity

And if you die before the end of the contract, the insurer undertakes to pay a principal or annuity to the beneficiaries you have designated.

This type of contract is the most common life insurance contract.

In principle, any person of full age (or a minor if emancipated) may enter into a life insurance contract. But there legal capacity to subscribe to the contract is regulated by law, because the designation of a beneficiary is a act of disposition which has heritage consequences.

In some cases, the subscriber must be assisted or represented. The minor cannot subscribe to the contract himself, but his legal representatives can act for him. Here are the main cases:

Tableau - Persons authorized to take out a life insurance contract

Subscriber

Ability to take out a life insurance contract

Minor

No, but parents can subscribe instead of the child

Emancipated minor (from 16 to 18 years)

Yes

Major

Yes

Major under safeguard of justice

Yes

Major in curatorship

Yes, assisted by its curator

Major in guardianship

No, it is the guardian who can subscribe after authorization of the guardianship judge

Major under family authorization

No, but the authorized person can subscribe after authorization of the guardianship judge, respecting the provisions of the authorization order

Major under future protection mandate activated

No, but the agent may subscribe after authorization of the guardianship judge, respecting the provisions laid down in the mandate

At the time of the conclusion of the contract, as subscriber, you must:

  • Have the legal capacity to subscribe to the contract
  • Choose theinsured (which may be yourself or another person)
  • Designate the beneficiary(ies) of the contract (which may be you in case of survival or other people in case of death)
  • Completing an insurance proposal by responding completely and sincerely the questions asked by the insurer in a questionnaire that allows him to assess the level of risk and the complexity of the contract he can offer you
  • Make a first installment on your contract that will be invested in financial products (in units of account and/or euro fund).

If you take out a policy in the event of the death of another person, that person must give his or her written consent as an insured person. If she is a minor, she must be over 12 years of age and the written consent of her parents or guardian is mandatory.

Example :

The policyholder and the insured are the same person if you take out a policy to pay an annuity to your grandchildren after your own death.

The policyholder and the insured are 2 different people if you take out a contract to pay an annuity to your grandchildren in the event of the death of their father. In this case, the father (who is the insured) must give his consent in writing, so that the contract is validly concluded “on his head”.

Obligations common to all contracts

Before signing the contract, the insurer must comply with the following obligations:

  • Inform and advise you. The insurer collects information about your profile family and financial to offer you a contract adapted to your situation and your expectations. The insurer must take into account your experience, your knowledge of financial risks and your preference forsustainable investments contributing to environmental, social or solidarity objectives. The insurer provides a written account of your requirements and needs and justifies the options in the proposed contract.
  • Provide you with an insurance proposal (or draft contract) including a sample waiver letter. This proposal identifies the policyholder, the insured and the beneficiary. The essential elements of the contract are specified: nature of the contract (individual life insurance), amount of the guarantee offered, duration of the contract, terms of payment of premiums, existence of a possibility of redemption or transfer, details of the designation of the beneficiary, all the costs grouped under the same heading.
  • Provide you with an information note which summarizes the essential characteristics of the contract and explains the conditions for exercising the right of withdrawal. However, the delivery of the information note may be replaced by a sidebar inserted on 1era page of the draft contract, clearly indicating its essential characteristics.
  • Provide you with the key information document (Chione) or the disclosure document specific to certain financial media. This is a standardized document that should allow you to compare the different products offered. The risk level of a financial product is classified from 1 to 7.

FYI  

The annual amount of the fees at the entrance and on payment can not not exceed 5% premiums paid over the year.

Banks, insurance companies and financial institutions that market life insurance contracts must post the costs of their contracts on their website. The presentation must be in the form of a standard table that groups the fees by category (opening fees, management fees, payment fees, arbitration fees, redemption fees...).

Enhanced obligations for unit-linked contracts

The insurer must provide you with detailed information on the main characteristics of the units of account selected and on the charges levied on the contract.

The insurer can validly fulfill this obligation by providing you with the key information document (KID) or the specific information document.

The insurer shall specify, for each unit of account, the following elements expressed as a percentage:

  • Gross operating expense performance
  • Net performance of operating expenses
  • Amount of management fees and period to which they relate
  • Final performance of the net cost investment.

Since 1er January 2025, performance information must be provided for the last year ended and also on the 5-year annualized average.

The insurer must indicate the percentage of any retrocessions that it receives for the management of the assets contained in the unit-linked portfolio.

The insurer must bring you a tailored advice within the period after the contract has been concluded. It can give you a reminder to update your investor profile.

The information collected for contracts which are the subject of scheduled operations or those which have been the subject of operations likely to affect the contract significantly, updated every 4 years or every 2 years if the insurer provides a personalized recommendation service for contract management.

The insurer must keep you regularly informed of the evolution of your life insurance policy.

Mandatory information common to all contracts

The insurer must provide you every year the following information about your contract:

  • Amount of the cash value
  • Amount of guaranteed capital
  • Amount of the premium
  • Guaranteed return and amount of profit sharing of the contract awarded to you
  • Average rate of profit-sharing of contracts of the same nature open for subscription
  • Average rate of profit-sharing in closed contracts of the same nature
  • Average rate of profit-sharing of all contracts of the same nature
  • Average rate of return on assets held under commitments on contracts of the same category
  • Unit-of-account values (if included in your contract), changes in unit-of-account values, fees charged and any commission retrocessions.

Please note

At any time, if you have a “secure customer area” you can have access to the situation of your contract and make transactions (payments, arbitration) online.

The insurer must publish every year on its website the following information (accessible for 5 years) concerning each contract it markets:

  • Average guaranteed return on each of its life insurance and capitalization policies
  • Average rate of fees charged
  • Average net return to the insured
  • Rates of social taxes and levies in force at 1er January of fiscal year
  • Average rate of profit-sharing attributed to each life and capitalization policy
  • Opening of these contracts to new business (possibility of subscribing to new products within the marketed contract).

Enhanced information for unit-linked contracts

The insurer must make available to the subscriber at least 1 time per quarter the following information:

  • Redemption value amount
  • Value of units of account and their evolution
  • Gross performance, net performance and final performance
  • Charges levied for each unit of account.

The insurer must provide you every year the following information:

  • Unit of account values
  • Annual change in units of account since subscription and significant changes
  • Charges levied for each unit of account
  • Share of costs of each unit of account in the last known financial year
  • Possible retrocessions collected in respect of financial management of assets
  • Share of assets invested in solidarity-based, socially responsible funds financing the ecological transition.

The beneficiary clause makes it possible to designate the persons who, as the case may be, will receive the capital or the annuity after the death of the insured person.

An association or foundation may also be the beneficiary of a life insurance contract.

Please note

If, at the time of the death of the insured, no beneficiary is named, the accumulated capital or the planned annuity falls back into the succession of the insured and the tax benefit of the transfer through life insurance is lost.

On the contrary, if one or more beneficiaries are designated, the capital or annuity paid in the event of death does not form part of the insured's estate and is subject to the special rules of life insurance taxation.

Designation by the subscriber

As subscriber, you can designate one or more beneficiaries either directly in your contract (using a standard clause or writing a nominative clause), or by referring to a will.

If there are several beneficiaries, they will have to share the paid-up capital.

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Standard Clause

To designate your beneficiaries, you can use a standard clause proposed by the insurer at the time of signing the contract. For example, the following clause (if it corresponds to your situation):“ my spouse, failing which my living or represented children are equal, failing which my heirs ».

Your beneficiaries will need to provide the insurer with a act of notoriety, because the insurer will not be able to distribute the capital without checking with a notary the identity and number of children or heirs.

The word “spouse” will refer to the person with whom you are married at the time of your death, which in principle excludes the past partner or the common-law partner.

Nominative clause

You can write a nominative clause. It must include the essential information to allow the insurer to find your beneficiaries after your death and avoid confusion between different people. You must designate your beneficiaries by their full identity: surname, first name(s), postal address, and if possible date and place of birth of each.

By precisely naming your beneficiaries, you allow them to collect what is due to them from the insurer without waiting for the writing of theact of notoriety.

If you designate several beneficiaries, you can organize the distribution of capital that you want between them: for example “Mr X for 50%, Mrs Y for 25%, Mrs Z for 25%”

It is also recommended to provide for how to distribute the share of a deceased beneficiary: for example, “in the event of Mrs. Z's death, her share will entirely go to Mrs. Y”

Testament

The beneficiary clause of your contract may refer to a will that you keep at home or that you can deposit with a notary. In this way, the people you choose as beneficiaries and name in the will will not be known until after your death.

If you designate several beneficiaries, you can organize the distribution of capital that you want between them: for example “Mr X for 50%, Mrs Y for 25%, Mrs Z for 25%”

It is also recommended to provide for how to distribute the share of a deceased beneficiary: for example, “in the event of Mrs. Z's death, her share will entirely go to Mrs. Y”

Throughout the contract, you can amend, subject to conditions, the person or persons designated as beneficiaries.

For complex situations, or for the drafting of a will, it is preferable to seek advice from a notary to ensure the validity of your beneficiary clause and its application after your death.

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Acceptance of the beneficiary

If the person you designate accepts the beneficiary clause for their benefit, this clause becomes irrevocable. You will no longer be able to change the name of the beneficiary of this contract. In this case, we are talking about accepting beneficiary.

However, this acceptance is only possible after a period of 30 calendar days from the conclusion of the contract.

The law provides for 2 procedures for accepting the beneficiary clause:

  • Signature of a endorsement to the contract by the subscriber (who is also the insured), the insurer and the accepting beneficiary
  • Signature of a written document between the policyholder (who is also the insured) and the accepting beneficiary, followed by notification to the insurer.

Approach

Once the contract is signed, you have 30 calendar days to change your mind.

You must send a letter of waiver by registered mail with AR: titleContent or by electronic registered mail with acknowledgement of receipt, to the address that must appear at the end of the contract you signed.

This period begins on the date on which you were informed of the conclusion of the contract.

If the insurer has not provided the advance information correctly, the period shall begin to run from the date of delivery of the missing documents, up to a maximum of 8 years from the date on which the subscriber is informed that the contract is concluded.

A sample waiver letter is available:

Request to waive a life insurance contract

Consequences of waiver

The insurer will return all amounts paid on the contract to you within a maximum period of 30 calendar days from receipt of the registered letter or electronic registered mail.

After this period, the sums you have paid pay interest to the legal rate increased by 50% during the first 2 months, then beyond this period, at twice the legal rate.

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