Reform of Credit Insurance

December 22, 2009 by · Leave a Comment
Filed under: Other Insurances, Personal Loans 

Recently, Christine Lagarde, Minister of Economy Industry and Employment has introduced a plan of reform to substantially change the current laws that allow banks to require borrowers to their insurance policies at a mortgage application.

Recall that this insurance is to cover the borrower in case of death, incapacity, disability and sometimes loss of employment. This reform will allow and, in 2010, all borrowers to choose their insurance loan only if the proposed contract includes guarantees equivalent to those offered him the bank.

For information, 85% of borrowers subscribe today their contract with the lender. Another very important aspect of reform: to increase transparency. Consumers who wish to subscribe an insurance credit will be now put a sheet of advice and information.
The government has prepared this document in consultation with the insurance professionals in partnership with consumer groups. And for the first time, consumers have been involved in creation of panels that have helped test and improve substantially the paper.

The form of advice and information is a unique setting that will prevail at all and should be completed jointly by the borrower and the dealer (banker, insurer, broker …). It enables consumers to be better informed of their rights and duties, which, it must be admitted, was lacking until now.

Finally, consumer credit will display the price of credit insurance. This should be expressed in euros per month. Recall that the market for credit insurance is a very active market with over 4 million contracts sold in 2007 (mortgage and business) for a turnover of over 6 billion and a half euros. Today over 30% of households who own an insurance contract borrower is more than eight million.

Life Insurances in Euro Capital Guaranteed

December 20, 2009 by · Leave a Comment
Filed under: Health Insurances, Other Insurances 

Without risk, life insurance contract in euros is a savings account which is to accumulate capital by installments scheduled. The ability to make partial withdrawals are in a position where the member meets the terms of the contract, the goal still being to let the money grow for several years and allow to reduce taxation.

The capital of a life insurance contract in euros is guaranteed and the interest generated each year by the capital are acquired. But be careful, however, admission fees and management vary across insurance companies. Take care also in case of bankruptcy of the insurance company. In this case, a guarantee fund shall indemnify each insured up to 70000 euros.

You can withdraw your money whenever you want, outside of the cancellation period of 30 days, and without waiting for 8 years and if we respect the term of the contract about the total or partial redemptions.

The contract of life insurance euro is based on a guaranteed minimum annual rate plus a share of profits earned by the insurance company. Less than 4% in 2007, specialists in insurance and finance provide a guaranteed minimum interest rate around 3.5% in 2008.

Regarding the taxation of life insurance contracts in euros, only the interest of the money withdrawn from savings are taxed. You can choose to incorporate these interests in your income and you will be taxed according to the scale of your tax bracket.

For life insurance contracts in euros, payroll taxes are still 11%. But they cover only the interest generated by the contract on December 31 and every year.

Finally, in case of death of the insured or the beneficiaries of life insurance contract signed in euro since October 13, 1998 will enjoy an allowance of 152,000 euros, including all contracts. Above this amount the tax is 20%. And for transactions made after the 70th birthday of the insured, an allowance of 30,500 euros is applicable on payments, including all contracts. Interest is then exempt from tax and the surcharge is subject to inheritance classic.

Housing Savings Account – The Assumption of Credit at Preferential Rates

December 16, 2009 by · Leave a Comment
Filed under: Finance 

The housing savings account is a financial product sure to place the money in the short term. Each person or minor can open one, with a minimum of 300 euros. It can subsequently be fed with payments of at least 75 euros. The ceiling of housing savings account is limited to 15,300 euros and only interest payments on the account can exceed this limit.

Besides bankruptcy of the bank where you opened a savings account housing, it is not possible to lose money with this type of contract.

Withdrawals from a minimum of 15 euros can be made at any time on a savings account housing, provided to allow an amount of EUR 300 times.

The money placed in a savings account housing is poorly paid. The rate is equal to two thirds of the Livret A rate rounded to the quarter point, or 1.75% in 2007. This rate is revised twice a year, on 1 February and 1 August each year. Interest ELC respect the rule of the fortnight and are awarded after December 31 of each year. These interests are added to the capital of CEL and generate additional interest. To withdraw money, wait for 1 or 16 to benefit the interests of the fortnight. In another sense, for an investment of money on your CEL, it is best done before these two dates to get maximum yield.

Remember that a bonus is awarded state if you ask an ELP (loan home savings) account with your home savings. This premium state is equal to half of bank interest limited to 1144 euros per loan. In this case, the total compensation of your savings account housing reached 2.62%.

Finally, interest and premium of State related to a housing savings account are exempt from income tax. Only the interest of the year are subject to removal