What to choose between multisupport life insurance or PEA?– Get a quote in 3 minutes

Life insurance and PEA, the choice of ROI

Whenever possible, why should we choose between these two savings products that serve two very different purposes. Once you have more than 50,000 euros in savings, you shouldn't even think about it. A life insurance and an Equity Savings Plan (PEA) will do you a lot of service.

Life insurance, the Swiss army knife of savings

Life insurance is a savings product that goes everywhere, making it one of the best financial investments. She has many uses that will adapt to your situation over the years.

A solution for each investor profile

First of all, it is able to adapt to all wealth investor profiles. This ranges from a 100% guaranteed capital investment via the euro fund, to the most offensive investments that are through units of account, including SCPI yield. Because yes, you can invest in real estate through a life insurance contract by avoiding taxation on property income.

Best of all, you can decide to change your investments in the life insurance policy at any time.

Unparalleled liquidity

Investors also particularly appreciate the liquidity of this savings product. Like a passbook, it is possible to pay money in one or more installments, either on an ad hoc basis (free payments) or on a regular and automatic basis (scheduled payments). The same goes for getting your savings back. One-off or scheduled withdrawals can be made. And contrary to popular belief, you don't have to wait 8 years to get your money back!

Security in bankruptcy

For the more cautious among us, it is possible to invest in Luxembourg life insurance to take advantage of the super privilege granted by the Grand Duchy. The UCITS and FCP chosen by the insured will be held with an external depository. This allows in the event of bankruptcy of the insurer not to suffer a capital loss and to recover 100% of the savings made. Otherwise you will have to rely on the insurance guarantee fund, not to be confused with the bank guarantee fund.

Advantageous taxation, in the event of life …

Life insurance has a specific tax system. Beyond 8 years, there is an annual tax allowance (4,200 euros for a single person or 9,200 euros for a couple) on redemptions. This makes it a very suitable product for setting up additional income.

… But also in the event of death by making it a major tool in the context of transmission

In the event of death, inheritance tax is calculated according to the family relationship with the deceased. This can go up to 60% for people who are not related. As a reminder, the partner is housed in this sign!

Life insurance with its principle of exception escapes this rule. The taxation of life insurance in the event of death allows you to take advantage of significant reductions (up to 152,500 euros per beneficiary for payments made before age 70). This makes it the best transmission tool, especially in the context of a blended family!

Improve your profitability while reducing taxation with the PEA

In terms of taxation in financial investments, you will not be able to find more advantageous than the PEA. Unlike the securities account, the sales and distribution of dividends within the plan does not generate any capital gains to be paid. Only movements leaving the plan are taxed.

Beyond 5 years, the PEA is totally exempt from income tax, regardless of the amount of the latter. Only social security contributions are due. A life annuity resulting from the plan benefits from the same tax advantages.

And if you are not a French tax resident, you will benefit from a total exemption from social security contributions. Because yes, it is now possible to keep your PEA when you leave France.

Therefore, PEA or life insurance which to choose?

If you were to have only one long-term savings investment, we can only advise you to focus on life insurance. It will adapt to your needs whatever the period of your life and even beyond.

For repeat savers, it is important to diversify your savings on several types of placement. And for once, the PEA remains a diversification tool of choice. The only problem to be resolved in order to take full advantage of it is to set up efficient and appropriate financial management.

But if you have the possibility, we can only advise you to have these two products within your financial assets, alongside savings accounts, Housing Savings Plan, Madelin insurance contract, retirement savings plan, securities accounts and capitalization contracts.