When a policy-holder is unable to pay-off his debts or if he is in bankruptcy, the spouse and descendants designated as beneficiaries substitute the policy-holder, unless they explicitly refuse this substitution. If the right mentioned in the contract of insurance is not to be implemented through seizure or bankruptcy, and if the spouse or the descendants of the policy-holder are not designated as beneficiaries, they can require that the insurance be sold to them at the repurchase price with the agreement of the policy-holder.

This legal privilege is particularly useful. The self-employed in particular can enjoy it since they must often take significant financial risks. It is also an absolutely legal way to remove an appropriate amount from your income and put aside for your family and yourself.
 
Usually, the beneficiary clause is already set in the life insurance proposal. However, it can be changed any time by communicating the change to the insurance company life or by will. If the beneficiary clause is set by will, it is advised to give a copy of this will to the company; unpleasant delays and painful discussions at the time of the death could be avoided.
  
If the profit clause is formulated as irrevocable, the policy-holder must sign on the contract itself, saying he renounces the right to cancel it. The contract is given to the beneficiary.
Finally, the insurer must be informed of it.

In theory, the beneficiary clause can designate people not being part of the family, or an institution.

The beneficiary clause in dependent contingency is an exception. This form of contingency funding is exclusively used as an individual contingency funding for retirement, death or profit incapacity and it has interesting tax advantages. Consequently, restrictive rules limiting the beneficiaries are planned by the law: in case the policy-holder stays alive, he is the beneficiary; if he dies, the surviving spouse is; otherwise, direct descendants (children, grandchildren, great-grandchildren) and those who were financially taken care of by the policy-holder are the beneficiaries. If all the above people are missing, the beneficiary clause can designate someone else within the limits of the law.

The general conditions of the insurance contract often include an order of beneficiaries which is applicable if the policy-holder did not make a different choice.