Life insurance contracts in euros
These are life insurance contracts intended for those who wish to invest without taking any risk. The main advantage of contracts in euros is, in fact, the security of the investment. These life insurance contracts are mainly invested in risk-free investments (mainly bonds) They benefit from a double guarantee:
- the invested capital is guaranteed: at maturity, it will be increased by capitalized interest and possible profit sharing;
- an effect pawl, which limits the risks by allowing the subscriber to permanently keep the annual interest credited on his contract. This interest is added to the amount of savings to in turn produce interest. The insurer may also provide for a guaranteed minimum rate.
Unit-linked life insurance contracts, also called variable capital contracts
A unit of account is a financial investment medium such as shares or shares in securities or real estate (Sicav, shares, bonds, shares in mutual funds, shares in SCI, shares in SCPI).
Unit-linked life insurance contracts allow diversified investment in the financial and real estate markets.
For subscribers who are looking for a long-term investment and who are ready to accept the risks inherent in fluctuations in the financial markets (the capital is not guaranteed, only the number of units of account is), contracts in units can offer attractive return prospects.
Multi-carrier life insurance contracts
These are life insurance contracts comprising several vehicles or compartments, one or more of which is expressed in units of account and one expressed in euros, among which the contributions paid are distributed.
To favor the protection of his capital, the subscriber will opt for low volatility media. On the other hand, if it accepts greater risk-taking, it will choose more dynamic supports, with a predominance of equities. In the latter case, it is preferable to consider a relatively long investment period.
It is therefore essential to determine your investment strategy in order to verify that the multi-support life insurance contract chosen allows the desired investments.
The different management methods
Profiled or mandated management
The majority of multi-support contracts offer different management profiles.
The subscriber entrusts the managing body with the task of managing his payments according to the chosen profile:
- the profile careful or safe, very largely composed of bond and money market products;
- the profile dynamic, Which favors investment in equities;
- the profile balanced, which strikes a balance between security (bond and money market products) and profitability (equities).
Profiled funds favor simplicity of management, since it is the management company that monitors the evolution of values and arbitrates investments.
Management on the horizon
For the subscriber, management is simplified, because the composition of the investments changes automatically according to his age and his objectives. More risky at 30, she will be more cautious as she nears retirement.
The subscriber distributes his savings himself between the euro support and / or the unit (s) of account. This type of management assumes that it is able to react appropriately to changes in the financial markets.
Arbitrage is an operation which consists of modifying the distribution of capital or the management orientation. The arbitration transaction must be the subject of a formal procedure described in the contract.
Arbitrations are subject to limiting conditions (number of annual arbitrations authorized, limitation of arbitrations to exceptional situations, automatic arbitration, etc.) which may differ from one contract to another.
Additional guarantees in the event of death
Certain multi-vehicle life insurance contracts offer the possibility of opting for a death guarantee intended to compensate for the consequences of a death that would occur in an unfavorable financial context. This type of guarantee allows the beneficiaries of the contract to recover all the payments made by the subscriber.
Different guarantees exist:
- the minimum guarantee is the most common. It allows the beneficiary to receive a minimum capital upon the death of the insured, regardless of the value of the units of account on that date. Most often, the minimum guaranteed capital corresponds to the total contributions paid.
- an increased guarantee may be provided for by the contract: the beneficiary then receives at least the invested capital, less costs and redemptions, but revalued according to a rate defined in advance.
- warranty pawl allows the beneficiary to receive minimum capital at a level reached at a certain time.
Eurocroissance life insurance contracts offer the subscriber (or the member for collective contracts) the expectation of a higher return than contracts in euros, with lower risk taking than for unit-linked contracts.
The Eurocroissance contract can include both support in euros and / or unit-linked and a Eurocroissance or growth fund:
- The capital invested in a Eurocroissance funds is guaranteed at 100% (ie the premiums paid minus the costs), at the end of a period of at least 8 years, defined contractually between the subscriber (or the member) and his insurer.
- If the capital is invested in a growth funds, a percentage is guaranteed after a period of at least 8 years. The percentage of the guaranteed capital and this duration are defined contractually between the subscriber (or the member) and his insurer.
The insurer distributes the capital invested in these funds between:
- an amount making it possible to guarantee the capital at the contractually fixed term;
- and an amount invested in diversified assets, giving hope for a more attractive overall return than that of euro-denominated vehicles.
Generation Life contracts
Generation Life insurance contracts are fully invested in unit-linked support, which must meet certain conditions: at least 33% are invested in the financing of small and medium-sized businesses, social or intermediate housing or the social and solidarity economy .
In return for these commitments, Life Generation contracts allow the beneficiary (ies) to benefit from a tax advantage in the event of the death of the insured: a proportional reduction of 20% is applicable to the capital transferred, before the fixed allowance of 152,500 euros per beneficiary.