Whole life insurance
For whom?: People wishing to transmit wealth — Annual premium: 2500-25000 MAD/an
Whole life insurance guarantees capital payment to beneficiaries regardless of death date (no fixed duration, contract until 100+ years). Mixed contract with savings component. More expensive than term but payment certainty.
Coverage details
Capital paid at term (certain death). Progressive surrender value (can redeem contract with capital loss). Participation in insurer's technical profits. Level premium over life. Life annuity option possible as alternative to capital.
Benefits
- 100% guaranteed payment (unlike term)
- Surrender value constituted over years
- Lifetime protection without renewal
- Optimized wealth transmission tool
Limitations
- Premium 3-5x more expensive than equivalent term
- Long-term commitment (decades)
- Negative surrender value first 5 years (fees absorbed)
- Moderate savings component yield (3-4%)
2026 taxation
Premiums partially IR-deductible (within 10% net income, 50,000 MAD/year cap). Death capital exempt for direct beneficiaries. Contract surrender: capital gains taxed at 15% if > 8 years, otherwise IR scale.
Eligibility
Age 18-70 at subscription. Systematic medical exams beyond 50. Capital < 1M MAD: simple questionnaire. Above: complete assessment. Refused: cardiac history, cancer, type 1 diabetes.
Concrete example
Woman 40, 800K MAD whole life capital: 4,500 MAD/year premium. Surrender value at 20 years: 85K MAD (after fee reimbursement). Death capital guaranteed even centenarian.
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