Life insurance: “What is the legal period to obtain the repurchase of my contract?”

In the “major savings meeting” (capital / radio heritage), Stéphane Van Huffel, president of SVH Conseil, responds to a listener who wonders about the legal time limit for a life insurance repurchase.

Capital video: What is the legal deadline for a life insurance repurchase?

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Each month, the “big savings meeting” (capital / radio heritage) answers your questions in the “your questions, our answers” sequence. Our experts – notaries, taxpiens, specialists in investments – support you on all your financial concerns, whether inheritance, investment or taxation. Today, Stéphane Van Huffel, SVH Consulting, responds to Jean-Claude, who asked for the total repurchase of a life insurance contract in the amount of 4,500 euros, without obtaining a response from his insurer.

The expert wants to be reassuring: “For me, it’s a setback. In the era of digitalization, life insurance repurchase is carried out in principle in 10 to 15 days, it is a product which has become almost liquid. ” However, he recalls that the law provides for a strict framework. “The maximum legal deadline for life insurance buyback is two months (Article L132-21 of the Insurance Code), but certain general or specific conditions of the contract may shorten this period. ”

The capital requested as part of a redemption is due to the saver

If Jean-Claude does not receive his funds, several explanations are possible: “He must verify that his insurer has all his bank and postal contact details. A redemption can be blocked for administrative reasons, which does not help the insurer, because it is legally required to honor the request and must pay penalties beyond two months “recalls Stéphane Van Huffel. The wealth management expert insists that the insurer cannot retain the funds indefinitely: “Your money is due to you, Jean-Claude. As soon as your repurchase request, the insurer has the obligation to pay you. ”

If the situation does not unlock quickly, there is a solution before considering a legal appeal: “You can get closer to the insurance mediator before entering into conflict. In 9 cases out of 10, this is a technical problem, like a rib that does not pass, and the money is simply blocked on the insurer’s account ”, reassures the expert. In conclusion, the repurchase of life insurance must be carried out within a reasonable time, generally within two months. In the event of delay, it is better to start by checking its banking information and, if necessary, enter the mediator to quickly resolve the situation.

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