Our classification methodology: selection criteria
Dematerialization, digitalization, electronic signature, or online arbitration; you've obviously heard of it. Indeed, more and more insurance companies and banks have (finally) become aware of their delay in terms of the provision of technological tools so much moreover to facilitate things for the holder of the contract (it is to say you) only for his advisor (us).
This is why among the criteria we have chosen for 2020, technological solutions and tools have become fundamental. Are you bored with “paperwork”? Tell yourself that for us it’s much worse.
How much time wasted printing, filling in by hand, putting in an envelope, posting, tracking (not counting random losses from the post office…). Administrative archaism is dead, long live technology at our service! For this 2020 ranking.
“3.0” euro funds
As I said in the preamble to this ranking, the classic euro funds are dead and with them the last hopes of profitability. However, some avant-garde (or visionary) insurers who saw things happen (as a reminder, one of the reasons for the continuous decline in the yield of euro funds for 10 years is the drop in central bank key rates), have know how to anticipate and design with their internal teams a new form of euro fund.
They kept the essentials but added the missing touch: performance.
The principle is the same as what interests you already in the euro fund: its capital guarantee and its liquidity. What changes, however, is its actual yield potential. Forget immediately your bank or your traditional insurer, their offers have unfortunately not changed for the most part. If you are still and still addicted to the euro fund, then turn again this year to these “new generation” euro funds.
These euro funds have the particularity of investing in particular on the financial markets, but rest assured, your capital is and always remains guaranteed, in the same way as the liquidity of your contract which is always acquired. The insurer therefore makes strategic choices at the start of the year on the markets and the result is known at the end of the year. In other words, you can have a good surprise and outperform traditional euro funds, or, in the worst case scenario, have 0 returns. Thus, a euro fund of this type has generated 4% net return recently when its “traditional” little cousins struggled to generate more than 1.80%.
The choice of supports
The choice of Units of Account (UC) proposed in a contract is obviously one of the major choice criteria for a life insurance contract. The more choices you have, the more you (if you are experienced and have time to manage your contract) or your advisor will have smart options and alternatives to build the contract that best suits your needs and expectations.
Diversified, flexible, sectoral, equity, OPCI, SCPI, structured, etc. funds, the more comprehensive the choice, the greater the range of possibilities for you. Obviously you have to know where you set foot. If you are not a finance specialist, I strongly recommend that you turn to a competent but above all independent professional (that is to say someone who preferably does not have house products to “recommend” “And which will tend to serve your interests more than those of the brand for which it works … CQFD).
Among the supports made available in a contract, find out about alternative supports to conventional Account Units such as OPCIs, SCPIs or structured products in particular.
Securing capital gains, automated arbitrage or even progressive investment in different asset classes, the options for managing a contract allow it to evolve over time and according to your changing needs.
The management fees will obviously be taken into account because I know that you scrutinize them carefully and that you like to compare them; but they are not by far the most important criterion for me. Indeed, low management fees (“ nice i got a good deal ») On a low-paying and / or poorly managed contract will not change anything: if the contract is bad, even with low management costs, it will remain bad.
” Is it better 0.6% of costs on a contract which brings back 2% net of costs or 1% of costs on a contract which brings back 4% net of costs? “
As you can see, for this ranking we were not only interested in the performance of the euro fund or the costs. At netinvestment we consider that a good life insurance contract is a contract that offers modern, scalable solutions, adapted to current conditions and the new needs of savers.
It's simple: there is no order!
The first in the ranking is not the best, it's just the first on the list, and so on.
These 5 contracts, on the other hand, are among the best on the market; each one having its specificities and strong points to select according to you. Good reading.
The top 5 best life insurance in the market in 2020
1. The most diverse: Private life
The scope of life insurance is broad. It allows, as mentioned above, to be able to invest in euro funds but also in real estate underlying media, certainly not guaranteed in capital but not very volatile or even on financial media.
The best life insurance is therefore in essence the most diverse in terms of choice of investment vehicles. You have to realize that performance also largely depends on duration since volatility is “smoothed” over a longer period. The latter can also be the conditional element of a softer tax system (more than eight years in particular).
From this observation, for those looking for performance, it makes sense to be able to access the contract with the most open architecture possible.
During the term of your contract, with effective, justified and active management, particularly on the markets, arbitrations will certainly be carried out. For that, it is more reassuring to have a range of UCITS (Undertakings for Collective Investment in Transferable Securities) wide in order to have the widest possible choice of supports.
In addition, it will be wiser to be able to choose the best UCITS in its category rather than sacrificing your choice by selecting a narrow contract, limited only to “house funds”. The potential diversification is the future opportunity to receive a higher return.
The same is true for SCPI (Real Estate Investment Companies) or other vehicles linked to real estate. For those of you who are disappointed with your euro funds and who wish to avoid experiencing the slightest volatility, there are alternative solutions. In this case, real estate supports. It is therefore necessary to identify the contract that can satisfy you in investments of this nature.
The PRIVATE LIFE contract, for example, offers this wide choice of supports.
This contract gives the opportunity to invest in 3 separate euro funds including 2 dynamic new generation euro funds, over 700 UCITS references, 9 SCPI, 5 arbitration mandates (online) and a very large selection of ETFs (Exchange Traded Funds which are indexed UCITS).
Obviously arbitrations, updates and additional payments are made entirely by electronic signature on this contract.
2. The best risk / reward ratio: Serenipierre
The classic euro funds that you will find in your bank are made up of government bonds. With the steadily lowering of key rates, the erosion of the performance of these funds has been felt very significantly. Today, funds of this type, offered in banks, may even be lower than inflation ; in other words, you are losing money.
Indeed, with inflation between 1.5 and 1.80%, euro funds that do not generate at least this net return make you lose money!
It therefore became essential to find guaranteed solutions, since in this type of investment, it is the insurer who bears the risk and not the investor, while still earning more than inflation.
So here is a solution that couples a new generation euro fund, boosted thanks to real estate and a good offer in Account Units.
Of course, this contract cannot be 100% invested in guaranteed capital.
Today, only 35% of your allocation can be invested in the boosted euro fund, but you can also add a classic euro fund if necessary. The contract is of course open architecture and therefore offers a wide range of CPUs, including structured products, very attractive in terms of risk / return.
The primary advantage of a contract is still being able to access your boosted euro real estate fund, mainly composed of SCPI or SCPI SCI shares, which will generate a more constant return than bonds or stocks (more than 3% / year net of costs on average over the last three years).
In addition, very low OAT yields will not affect the performance of your life insurance.
SERENIPIERRE also offers you the opportunity to invest in SCI CAPIMMO. A good alternative for investing in real estate with lower costs than investing in a SCPI while offering a lower level of risk.
Finally, and as always with netinvestment, Serenipierre is accessible without any additional management fees and above all with only 1% entry fees.
3. The euro fund boosted with the best potential: Target +
It is by its innovative euro fund that this contract stands out. Here, no question of thinking of this contract as a classic life insurance. The main euro fund is very different. Capital is always guaranteed, so the yield cannot fall below 0% even in times of declining financial markets.
On the other hand, when the financial markets perform, the fund cannot be beaten by the competition.
Indeed, this boosted euro fund is based on a diversified allocation of CPUs to obtain better outperformance potential.
Thus, the euro fund of this contract, for example, generated more than 4% net in 2017 and 3.15% net of fees in 2019.
It is clearly the smartest life insurance contract on the market because while offering the capital guarantee on its pocket in euro funds it allows you to take advantage of the potential performance of the financial markets. The fund manager takes positions in the markets which, if they are profitable, can generate a more significant performance.
This contract is a contract that offers good prospects for smoothed returns over the long term. In the past, it has already offered a 0% return but has also already distributed more than 5%. For 2019, the euro fund for this contract delivered 3.15% net of fees!
Finally, and as with all life insurance policies distributed by netinvestment, the entry fee is 1% maximum.
In a rapidly changing world where new applications are multiplying, where the everything connected and robotics are omniscient and are a logical component of the portfolios it is logical to follow this direction and highlight the modern and didactic nature of this contract.
With entry fees reduced to only 1% at netinvestment and attractive management fees, the contract, accessible from € 3,000 down payment, offers more than 560 OPCVM, 6 SCPI, one of the best OPCIs on the market thus approaching more conventional contracts. In addition, this contract makes it possible to set up scheduled payments from only € 100 / month, when most “high-end” contracts only allow it from € 150 / month.
Finally, this contract has management flexibility if you decide to manage your contract yourself independently or if you prefer to manage it (at no additional cost) supervised and managed by the netinvestment teams who do this every days for 15 years.
The Coralis contract is obviously subscribed in 100% digital format and offers an open architecture of more than 540 UC, 3 OPCIs, access to live securities in free management, as well as a wide choice of management options under mandate and even the possibility of combining two mandated management on the same contract.
This is one of its great strengths for those who seek to fully delegate their management while benefiting from the expertise of the best market management companies. As with the other four contracts mentioned in this guide, entry fees remain capped at 1% maximum at netinvestment.
|Funds||Yield2019||Performance2018||2017 Yield||Product details|
|Private life||1.20%||1.57%||1.70%||Find out more|
|Serenipierre||2.80%||3.20%||3.40%||Find out more|
|Target +||3.15%||0.8%||4.05%||Find out more|
|Strategic Premium||1%||1.50%||1.80%||Find out more|
|Coralis||1.30%||1.70%||1.85%||Find out more|
The choice to access a life insurance policy is quite wide and should be decided depending on what you are looking for. It is logical, if you wish to seek performance even if it means taking more risk, or if on the contrary you wish to aim for a certain regularity of return or if you prefer to guarantee your capital, that your choice is based on a contract rather than on another. But beyond the traditional criteria of return, security or liquidity, other elements can contribute to your choice. A contract with deferred interest distribution or 100% online access may be the most suitable for your objectives and needs. Finally, thanks to the single flat-rate deduction of 30% which allows you to get out all or part of your funds more easily and at any time without necessarily having to wait 8 years to optimize taxation, life insurance remains more than ever an investment d flexible and scalable savings. Do not hesitate to approach one of our heritage project managers who will be able to assist you in choosing and selecting the best contract … for you.