Raising doubts and uncertainties, the health crisis has sharply redistributed the cards in terms of savings and financial investments. Among the impacted investment methods, life insurance has experienced some disappointments. We decipher for you the consequences of the epidemic on this famous savings tool.
Life insurance: a massive outflow linked to the health crisis
Like many other sectors, finance has not been immune to the coronavirus crisis. In response to the economic collapses and the lack of visibility of the markets, many savers have bet on caution. During the months of March and April, the levels of collection broke the record, with withdrawals far in excess of payments. Note that this unexpected phenomenon has not been observed since 2011.
A nuance can nevertheless be made, the part of the savings in the background in euros has in fact been little influenced by the health crisis. Indeed, it should be remembered that the favorite placement of the French has two distinct components, the second corresponds to the unit of account part. Ultimately, savers who invested everything in bonds suffered little damage.
Choosing the right formula to mitigate financial risks
If there is one lesson savers should learn from the impact of the pandemic on the financial sector, it is the need to diversify their investments. In terms of life insurance, several formulas are made available with varying levels of risk. If the units of account are more profitable, they are also less secure. Today, most financial advisers recommend dividing your resources between these investments and euro funds.
If this basic rule is respected, know that life insurance is a means of saving advantageous, reliable and efficient. Among its main assets, we can highlight the fiscal advantages offered to beneficiaries upon the death of the insured. In addition, the saver has great flexibility in terms of deposits and withdrawals. It is therefore easier to understand why these contracts resonate with the French so much!