Life Insurance Placement
Investing in a life insurance policy is a long-term financial investment. A preferred financial investment for French people, life insurance is an investment with several advantages.
|Investments 2020||2020 risk levels (1)||Yield expectation 2020 (2)||Preferences for 2020 (3)||Comments|
|CLASSIC EUROS FUNDS||Mass is said for a number of funds in euros. Flee funds in dying euros (mainly bank contracts) in favor of the best. There are euro funds, without condition of payment on the units of account, whose return is around 3% in 2019! Opt only for euro funds with a yield greater than 2.20% for the year 2019.|
|EUROS AT RISK FUNDS||An alternative to classic euro funds, without falling into the trap of eurogrowth funds with their tunnel effect for 8 years. On euro risk funds, the capital is no longer fully guaranteed, but up to 96% or 98%. In return, potential additional gains, if the financial markets are well oriented, of course.|
|EUROCROISSANCE FUND||New version of the Eurogrowth funds in 2020, simpler, more understandable. The advantage for savers will still not be obvious. The first overall real return will be published in 2022! These Eurogrowth funds have a tunnel effect, the published intermediate returns have no value, since negative returns can arise in bad years.|
|DYNAMIC EUROS FUNDS||After the violent fall of the financial markets at the beginning of March 2020, a delicate bet for a recovery. So be careful, do not bet 100% on these euro funds. A 33% / 33% / 33% mix between classic euros funds, real estate euros funds and dynamic euros funds seems to be relevant.|
|EUROS REAL ESTATE FUNDS||Yields higher than conventional euro funds, via real estate, but beware, subscription conditions forcing you to invest in risky account units. Be wary of a potential downturn in the real estate market in late 2019. If this is confirmed, arbitrate in early 2020.|
|SCPI VIA LIFE INSURANCE||The accumulation of benefits (SCPI returns) and taxation and elimination of the risk of illiquidity of SCPI units via Life Insurance. As long as performance is the key, keep it. At the slightest sign of weakness, arbitrate to return to the euros fund.|
|OPCI VIA LIFE INSURANCE||Attractive life insurance taxation, but OPCI returns are not up to expectations.|
|ASS.LIFE / UNITS OF ACCOUNT||It is essential to invest regularly, regardless of the units of account chosen. The only way to increase your capital is to invest on a regular basis.|
|ETF VIA LIFE INSURANCE||Sensitive souls refrain. Placement reserved for the savers according to the evolutions of the financial places, the ETFs are to be privileged compared to the traditional funds (lower costs). Managed management or free management.|
|SCI / SC VIA LIFE INSURANCE||Attractive life insurance taxation, variable ICS returns, choose your ICS carefully.|
(1): Scale of the average risk level for this type of investment (scale from 0 (without risk, no red bar) to 5 (Very high risk investment, 5 red bars)). The level of risk can vary widely for a given investment, depending on the choice of investment vehicles (e.g. a life insurance contract placed 100% in units of account will be risky, versus a contract placed 100% in funds euros will be risk free)
(2): Expected average return, on a scale of 0 to 5 stars (0 star: no return, 5 stars: Very high return). Reminder: expectation of a high return without a high level of risk cannot exist.
(3): Indication of our preferences for 2020, on a scale of 5 graduations, to avoid, to strongly favor.
Life Insurance Placement: The Benefits
In the context of a life insurance contract, capital gains are exempt beyond 8 years, up to a limit of € 4,600 for a single person (€ 9,200 for a married couple).
In the event of the death of the insured, the inheritance tax can be deductible up to a limit of 152,500 euros (apart from the surviving spouse, inheritance tax being exempt in this case).
You can consult the taxation of life insurance.
Life insurance placement: the different contracts
There are two main types of life insurance contracts: euro contracts and multi-support contracts. The latter have more advantages than the first, since they allow in particular to invest on various supports in Account Units, at the discretion of the saver. There are more than 1,000 different life insurance contracts in France, so how to choose? FranceTransactions.com has selected a few dozen of the most recent and best-performing contracts: list of life insurance contracts.
Life Insurance Placement: Declining Returns Year by Year
On a life insurance contract, only one medium allows you to invest your capital without any risk of loss, this is the euro fund. Accessible as well through a single or multiple support contract, the euro fund is mainly invested in bonds. However, with the fall in interest rates, the yields on these bonds have eroded over the years, further lowering the yield on euro funds.
The differences between the different funds in euros offered are mainly at the level of the distribution of investments (and therefore of the return) and of the costs that the saver incurs to benefit from the fund (fees on payment, management fees, arbitration fees ).