There is no shortage of different types of contracts offered by insurers, banks and mutuals. Therefore, finding the gem will not be a piece of cake.
And yet, the choice of a first life insurance contract should not be taken lightly. Here are some steps to follow that will allow a subscriber to quickly find a contract suited to his profile and his wealth objective.
First life insurance
Find a reliable insurer
It is possible to find a good life insurance contract with a bank, an insurance group, a mutual, a broker or a wealth management advisor (CGP). The subscriber is free to choose the insurer they want. However, you have to think carefully before taking out a life insurance policy.
Counting the number of trophies or medals from the establishment or the insurer is not necessarily the best solution. The ideal would be to turn to a reputable organization that has managed life insurance contracts for several years.
In all cases, the new ranges of bank life insurance contracts are always attractive with above-average rates of return. But the old contracts of the banks are aging badly and their remuneration leaves something to be desired especially after the appearance of new products on the market.
It would be better to open a life insurance policy with traditional insurers so as not to harbor false hopes.
Life insurance management fees can make a difference
It is always important to negotiate management fees before subscribing to a life insurance policy. Otherwise, they can have a large impact on investment returns.
These costs are deducted annually by insurers according to the capital invested (0.5 to 1% of outstandings). Besides the management fees, there are also installment fees which are one of the big disadvantages of life insurance. These can go up to 5% of contributions.
This is the reason why it is preferable to sign a contract (new generation) online, because installment fees do not exist for this type of life insurance policy.
Arbitration fees, meanwhile, apply as soon as the beneficiary changes investment vehicles or account units. The insured must also pay arbitration fees when he decides to sell a fund (euro or UC) to buy another.
Check the management options offered by the insurer
In general, it is possible to open several life insurance contracts at the same time. However, this decision can cost subscribers dearly because of the management fees, arbitration fees and payment fees for each contract taken out.
Instead of that, savers can look into the contract management options of their choice. Some insurers offer free arbitration options while others bill them (depending on the outstanding amounts, subject to a flat charge).
He will be possible to boost the capital gains of the fund in euros by automatically transferring them on units of account (UC) media. There is also the management option called “Stop Loss” allowing the saver to define the desired maximum loss on a CU.
The possibility of securing capital gains to one or more secure investment vehicles (monetary fund, euro fund) will also be possible. The choice will depend on the personal goals and needs of the insured, and of course, management options offered by the insurer.