Some tips for choosing life insurance– Get a quote for free

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Some tips for choosing life insurance
© Thuillier / REA

In its monthly column, Axeria Vie shows pedagogy and gives some advice to policyholders on finding a good fund in euros as part of life insurance.

First, he reminds us that we should not be intoxicated by a very attractive rate for one year because it will not necessarily be repeated in the following years. Thus, he suggests comparing the net returns of funds in euros which are displayed in the commercial brochures with the gross rates which are available in the status reports published by each insurer.

A higher gross rate than the net means the fund is performing as the insurer has been able to set aside some of the profits for more difficult days. In contrast, a very low or negative differential is “evidence of an aggressive short-term business strategy, which hinders the insurer's ability to maintain future rates of return.”

Once this first step has been taken, the funds must be sorted according to the economic outlook. Anyone who believes that the crisis will last and therefore that rates will remain permanently low should subscribe to an old euro fund. “This fund is likely to hold a large stock of bonds purchased at higher rates than in the years to come. “

On the other hand, anyone who expects a rapid economic recovery, and therefore a return of inflation, has every interest in subscribing to younger contracts because “the few old lines with limited yields will make it possible not to dilute the yield too much. high lines ahead ”.

Still, this choice depends on assumptions. To choose a life insurance policy well, you must not forget the fundamentals: that is, the costs. For contracts on the Internet, the fees on installments must be zero and 2 or even 3% for others. Also select the contracts which have the lowest management fees (maximum 0.80%) and those which offer free arbitrage. And finally, also look at the number of unit-linked supports because one day you may be tempted to diversify your savings.

Still, this choice depends on assumptions. To choose a life insurance policy well, you must not forget the fundamentals: that is, the costs. For contracts on the Internet, the fees on installments must be zero and 2 or even 3% for others. Also select the contracts which have the lowest management fees (maximum 0.80%) and those which offer free arbitrage. And finally, also look at the number of unit-linked supports because one day you may be tempted to diversify your savings.