There is nothing like being prepared for the most unfortunate and costly events in life. It is therefore important to take out a provident contract in order to anticipate and reassure yourself. The principle is to cover oneself against all the hazards of life linked to the person, both on a personal and professional basis (collective provident contract).
What is provident insurance?
Provident insurance is a form of social protection that supplements the compulsory scheme. It provides compensation for each of these risks, but does not fully cover the loss of earnings of the insured.
Contingency insurance provides financial support in your everyday life, unlike health insurance, which can only supplement the reimbursement of the Social Security system in the case of care (after an accident, for example),
It is the best solution to compensate for the loss of income of the insured in case of impossibility to work, thus allowing him to guarantee his standard of living in difficult circumstances.
It covers two main areas of risk:
risks related to death, incapacity, disability and dependence, which interrupt or totally hinder the professional activity and therefore the income of the insured;
medical expenses incurred during hospitalisation, consultations, analyses (illness, maternity, etc.). If the risk actually occurs, the benefits are paid in cash.
In the event of death, the benefit is a capital sum, i.e. an annuity paid to the surviving spouse, or an education annuity for the surviving children.
In the case of incapacity (temporary or permanent cessation of work), daily allowances provide the insured with an income for a maximum of three years.
In the event of disability, however, an annuity will compensate for the loss of income, until retirement if necessary.
The group pension contract
The group provident scheme is set up and negotiated by the company for employees to provide them with protection in the event of health, death or sick leave. It is a challenge launched by the employer who wants to pool risks and obtain tailor-made contracts at an attractive price. The contract can cover all employees regardless of their situation.
Group contracts are an asset in terms of management insofar as they play an important role in recruiting, motivating and retaining employees since they represent an attractive element of remuneration.
As for supplementary health insurance, it allows employees not to take out a personal contract and thus to make substantial savings.
In addition, group provident contracts offer considerable economic advantages for employers and employees, such as tax deductibility and social exemption.