The GMF (Mutual Guarantee of Officials) is the leading insurer of public service employees. Naturally, with more than 3 million “member” customers, this makes many savers attracted to GMF products. In particular the Multéo life insurance contract, marketed by the life insurance subsidiary of GMF (GMF Vie). “Definitely human” (its slogan) certainly, but is it an attractive life insurance policy for clients? As savers and informed investors, we give you our opinion on GMF life insurance. Overall we are disappointed and we will explain why. We remind you that it is necessary to analyze before subscribing and that you can have several life insurance contracts.
The best GMF life insurance?
First of all, we note that many GMF savers and clients wonder what is the best life insurance at GMF. To quote a famous YouTuber: ” the question is quickly answered “! There is only one life insurance policy distributed by the GMF: Multéo. So this is naturally the best GMF life insurance.
However, the life insurance market is large. There are more than 100 different contracts in France, distributed by dozens of banks and brokers. So Is the Multéo life insurance from the GMF a good life insurance? This is the question to ask and we will give you our opinion in this article.
GMF Multéo life insurance review: summary
Summary of the Multéo contract of the GMF, the essential:
|Entrance ticket (initial payment)||From € 1,000 upon opening (then € 300 minimum for free payments)|
|Euro fund performance 2019 (net of management fees)||1.90%|
|Account units (funds available excluding euro funds)||11 (very low choice, without ETF or SCPI tracker)|
|Management fees in units of account||0.75% per year|
|Arbitration fees||1st annual arbitration free, then 0.50% fee on the amount arbitrated (20 € minimum fee)|
|Management methods||2 choices: free management or managed management|
Strengths and weaknesses of Multéo GMF
In our opinion, Multéo GMF life insurance mainly has weak points:
- (+) Euro fund remunerated at 1.90% in 2019, above the market average. That said, there are better euro funds and no installment fees.
- (-) Payment fee: 2%. In our view, this is crippling when there are better life insurance policies with no installment fees.
- (-) Operation of another century : you cannot subscribe or manage by internet, you have to do everything by mail (payments, arbitrations, buybacks). Very laborious and too much time wasted in discussions, according to customer reviews.
- (-) Very poor choice of unit of account : only 11 units of account available in this contract! Impossible to diversify properly, given the poor choice in quantity and quality (no trackers, no SCPI, and only funds from the management company Covéa Finance).
Notice from Nicolas : sad to say, but the Multéo contract of the GMF is of no interest. Archaic operation, too many fees, rickety unit-of-account supply. And the only interest could have been the euro fund, rather correct, but the 2% charge on payment comes to cancel all interest. In short, the Multéo contract pales in comparison to the best life insurance policies.
Who is GMF Vie?
GMF distributes its Multéo life insurance policy through its GMF Vie subsidiary. This is the life insurance subsidiary of GMF, created in 1979 on the occasion of the launch of the first life insurance of GMF. So, the Multéo contract is insured by GMF Vie.
Multéo euro fund: Regular Support
As a reminder, the euro fund makes it possible to obtain a relatively low but guaranteed return, with the security of the capital (without risk of loss of capital).
On the Multéo life insurance contract of the GMF, there is only one euro fund, called Regular Support.
The performance of this euro fund was 1.90% net of management fees in 2019. So a return above the market average in 2019 (1.50%). That said, the payment fees for this life insurance (2%) spoil everything and make it unattractive to invest in this euro fund.
Units of account
Multéo is a multi-support life insurance policy. So you can either invest in euro funds (secure capital) as well as in units of account (risk taking in investment funds, in the hope of a better return).
Multéo only offers 11 units of account! And these are only in-house investment funds, managed by Covéa Finance (GMF's portfolio management company). In practice, there is a monetary fund, a few equity funds, a Socially Responsible Investment (SRI) fund and profiled funds.
Notice from Nicolas : the supply of units of account is very poor in quantity and quality. Truth be told, of all the life insurance contracts we've looked at on Investor Avenue, this is the worst from that standpoint. Too bad not to offer a selection of open-ended units of account, in order to have more choice from different management companies, rather than selling only in-house funds. And even more unfortunate not to find the funds very popular with savers: trackers (index funds) and SCPI (stone-paper) In addition, the unit-linked management fees are rather high (we talk about it later). In short, to invest well in units of account, you have to look elsewhere.
Payment fees and management fees
This is yet another disappointment. The costs of Multéo life insurance are high compared to the competition:
- Payment fee = 2%. On each payment, we are deducted 2%. Thus, for 1000 € paid, there are 20 € of costs and only 980 € will work. In the long run, it is terribly destructive. Know that the best life insurance is free of charge.
- Management fees on units of account = 0.75% per year. It’s average. Note that good life insurance only charges 0.60% per year on the sums invested in units of account, or even 0.50%.
- Free arbitrations once a year. Then 0.50% fee on the arbitrated amount, with a minimum charge of € 20. For example, if you switch € 10,000 from one unit of account to the euro fund, it will cost you € 50. Very expensive, when we know that the best life insurances do not charge for arbitrations (unlimited and free arbitrations).
The 2 management methods of the Multéo contract
This is classic in the world of life insurance. Multéo offers 2 management modes:
- free management : to save freely between the euro fund and the units of account. Thus, you divide your investment among the funds yourself.
- managed management : to delegate management to GMF professionals.
Note that the managed management is done via the 3 profiled funds of the Multéo contract:
- balance profile (performance: + 7.71% in 2019);
- dynamic profile (performance: + 11.99% in 2019);
- daring profile (performance: + 18.44% in 2019).
Notice from Nicolas : the performance of managed management may seem good at first glance. However, given the insolent performance of the markets in 2019, Multéo managed management is disappointing. Indeed, the best managed managements reported up to + 32% in 2019. And 3 different profiles are not much to personalize well.
Conclusion: a profitable investment of the GMF?
To conclude, can we say that this Multéo life insurance is a profitable investment by the GMF? For the GMF certainly, given the fees charged at all levels (including in the units of account offered, because funds exclusively house). For savers and GMF customers, probably less:
- For savers who prefer the security of the euro fund, there are better without fees on payment. On Multéo, the payment charge of 2% is ultimately higher than the return of the euro fund. See our comparison of the best life insurance, with 3 contracts mentioned in the security category.
- For savers wishing to invest in real estate it gets better through their life insurance. (Multéo does not offer anything for investing in real estate!) You need a good choice of SCPI, low management fees and 100% of the rent paid: a good life insurance contract for investing in real estate.
- For savers wishing to diversify and invest in the stock market, you have to look elsewhere. Indeed, there are all-terrain and scalable contracts with good euro funds and a large choice of units of account, with no payment fees or arbitrage fees. Unlike the Multéo GMF contract. Thus, in our comparison of the best life insurance policies, 2 contracts stand out in the versatile category.
- For savers who prefer to completely delegate in managed management, we also find much better elsewhere. Because we want a good personalization of the allocation according to the plans of the saver, low management fees and a good historical performance. We invite you to read our comparison of the best managed managements.
Finally, we cannot recommend the Multéo contract of the GMF to our readers. Indeed, there is much better for all saver profiles, just a click away, with no payment fees and from € 100 upon opening (instead of the € 1000 requested by Multéo). On the next page, you can read our article explaining the criteria for choosing life insurance contracts, with our ranking of the best life insurance policies.