What is life insurance – Azureco– Get a quote in minutes

Flexible, profitable and low-taxed, life insurance isn't popular for nothing. Beyond apparent simplicity, many contracts are actually quite complex. Le Revenu helps you choose and manage life insurance that will meet your needs, particularly in terms of performance.

The life insurance contract is rightly regarded as the Swiss army knife of heritage. It makes it possible to boost the profitability of its investments, to gradually build up capital, to pass it on to those close to it and of course to effectively supplement one's retirement income by making regular withdrawals (“redemptions” in the jargon).

It is a flexible investment that adapts to economic and personal changes. It is often mistakenly believed that this type of contract is only suitable for large amounts. However, it is possible to adjust the payments as you wish and start investing by placing a few dozen euros each month, as in a PEA, a PEL or an online savings book. Do not confuse life insurance with death insurance.

A profitable investment

There are two families of life insurance contracts offered by banks, companies, brokers and their representatives. The historical single-vehicle contracts which propose to invest in the only traditional funds known as “in euros” and the multi-support contracts which also propose the subscription of various financial supports. Life insurance is in positive net inflows, that is to say that the payments are higher than the withdrawals increased by the death benefits. Figures from the French Insurance Federation attest to this.

The return on euro funds depends largely on the return on government bonds purchased by the insurer to invest your money. In recent years, insurers, to diversify their investments, have also bought bonds issued by private companies and, depending on the markets, adjusted their share of investment in equities.

In multi-carrier life insurance, the gains can exceed, on dynamic funds, under favorable circumstances, 5-20% per year, but when markets fall, equity and diversified funds can lose more than 20%.

Very light taxation

Life insurance benefits from a privileged tax regime. The gains are little taxed and, in the event of death, the capital is transferred to the designated beneficiary (ies) most often excluding inheritance tax. The taxation of life insurance is complex. To experience its many benefits, take the time to understand the intricacies. Le Revenu is here to help you. Social contributions are due

What is life insurance

Two golden rules for success

Select a contract suited to your needs

Each year since 1978, Le Revenu has compared single-port and multi-carrier life insurance contracts to allow you to choose a product suited to your needs, which charges little on life insurance contracts.

Take out a Trophée d'Or du Revenu life insurance policy and pay your savings into it as your financial means progress. To obtain satisfactory remuneration, the choice of investment vehicles is essential.

Choose a savings plan tailored to your needs in a favorable tax framework. The most secure is not necessarily the best, especially when it comes to retirement.

The classic euro fund is no longer the answer to all wealth issues. Take out a multi-support contract.

Follow up on your contract

Once the contract has been chosen, you must talk to your advisor and complete a document in which you indicate your knowledge, your objectives and the risks you accept. Give special importance to the wording of the beneficiary clause. It must be well written so that the funds are allocated according to your wishes upon your death.

You can entrust the management of your life insurance contract to an advisor or broker working with several banks and companies. The latter, on your instructions, decides how the premiums are managed by providing you with various types of support ranging from very secure to the most risky. Throughout the duration of the contract, the premiums paid grow according to the investments chosen.

In multi-carrier life insurance, the gains can exceed, on dynamic funds, under favorable circumstances, 5-20% per year, but when markets fall, equity and diversified funds can lose more than 20%.

To benefit from or obtain a remuneration of 3 to 4% in the current context of low interest rates, you must accept a solution that offers limited risks.

To avoid investing as high as possible in SCPI or the stock market, pay regularly and spread your investments over time. Also spread your redemptions over several years in order to optimize taxation.