How to unlock the money placed in his life insurance policy?

Money placed in life insurance contracts is not as secure as one might think. There are 4 ways to dispose of your savings: total buyback, partial withdrawal, advance and pledge.

Total surrender of his life insurance policy

The total purchase must be included in the terms and conditions of a life insurance policy. It puts a definitive end to the contract. Only the subscriber may request it at any time during the term of the contract (except in the case of acceptance and except in certain cases) and he receives the value acquired under management. This value, if it is increased by capital gains, is taxable. A contract bought back can not be reopened.

Partial withdrawal

Partial withdrawal is not mandatory under the terms and conditions of a life insurance policy. Some contracts may not offer it. The contract continues. Only the subscriber can request it at any time during the contract (except in the case of acceptance) and it receives a portion of the value acquired in management, which will be permanently subtracted. 

This value is taxable. The revaluation of the savings is thus calculated on the remaining fraction after the withdrawal.

Advanced

The advance is in no way obligatory in the general conditions of a life insurance contract. Some contracts may not offer one. The advance is a loan granted to the subscriber on its own capital and is limited to 80% of the savings invested in the contracts in € and up to 60% for the unit-linked contracts. The contract continues. Only the subscriber can request it at any time during the contract (except in case of acceptance) and it receives a portion of the value acquired in management, which will be refunded (at the maximum after 3 years) with interest (average rate government bonds -TME- plus one point plus any costs *). 

This value, even increased by capital gains, is not taxable. The revaluation continues to be calculated on the same amount as that counted before the advance.* Some insurers compare the rate of the TME + 1% with the rate of return of their contract in € of the previous year and applies the higher rate of both.For all contracts: if an advance is not reimbursed before the death of the insured, it is deducted from the transferred capital.

pledge

Collateral is mandatory in the general terms and conditions of a life insurance policy. The contract continues and it remains intact. Only the subscriber can request it at any time during the contract (except in the case of acceptance) and it uses some or all of the value acquired in management to put it back as a guarantee of a credit to its creditor. This guarantee, which can not be greater than the sum in management, will depend on the type of assets (security, balanced, dynamic) on which the savings are valued. Several pledges can be agreed on the same contract. The subscriber can no longer dispose of the sums in the account until he has repaid the credit plus interest.This operation is the perfect example of beneficiary acceptance.