Video advice: how do you choose the right beneficiaries for your life insurance?

Life Insurance is a savings product that allows you to build up assets over the long term. It is also an effective way handing down assets, particularly through the designation of beneficiaries.

Here are the rules you need to know when choosing the beneficiaries of your life insurance policy. The beneficiary is the person entitled to the capital, i.e. the one who will receive the amount saved. In the event of the insured's survival, it is often the policyholder, i.e. the one who took out the policy and saved the money.  In the event of the insured's death, a third party will receive the capital. The designation of this person is often an emotionally charged process.

Who designates the beneficiaries? It is the policyholder who designates the beneficiaries. They can choose to designate one or more people. 

When are the beneficiaries designated? Beneficiaries can be named at any time during the policy : when the policy is taken out, or even during the contract.

Who are the beneficiaries? In most contracts, the beneficiary in the event of death comes from a classic devolution, i.e. the spouse, partner, children, etc.

My advice is to deviate from this devolution only if it is not appropriate! In this case, you have the choice between two types of designation : On the one hand, a nominative designation : here, the beneficiaries are specified by name.

Note that this specific designation will not change according to your situation, unless you remember to modify your contract.  For example, Mrs. X was nominatively designated as the beneficiary at the subscription of the contract because she was, at the time, the spouse of the policyholder. 

If on the policyholder's death she is no longer the policyholder's wife, she will still receive the amount saved. A similar risk arises when a child is named : if children are born later, they may receive nothing. A nominative designation should therefore be checked regularly to ensure that it still corresponds to your current choice.

The other possibility is a qualitative designation : in this case, a 'function' or 'role' is designated, e.g. your spouse or your 'children' in general, without directly indicating their names. This allows you to take account of changes in your situation without having to modify your contract.

To take the previous examples : in case of remarriage, the new spouse will be the beneficiary. If you have had other children, they will all be considered.

To check who the beneficiaries of your life insurance are, go to LALUX's easyAPP.  With each significant change in your life, such as marriage, divorce, or birth, make sure that the designated individuals are still the ones you want. You can change them as often as you like, free of charge. This way, you can avoid putting your loved ones in awkward or uncomfortable situations.

Would you like more information about LALUX life insurance? Our experts are there for you!