The objectives of subscribing to life insurance are multiple: grow your money, save for retirement or ensure an inheritance for loved ones.
We are going through this article to discover the reasons for choosing life insurance and with our advice how to make the choice.
What is life insurance?
First of all, life insurance is a savings product that aims to be able to diversify your savings and thus boost the returns on your capital.
Life insurance contracts give the possibility of placing on the one hand in funds in euros where your money is guaranteed but also on unit-linked media which gives way to potentially higher performance but with risk of loss of capital (because indexed to the stock markets). The guarantee is only linked to the number of units and not to the value of the latter.
Note that in life insurance you have the option of investing in different units of account such as stocks, bonds or even real estate.
Why take out life insurance?
The first point is that life insurance is not a risky investment if we only opt for euro funds. In addition, the returns are in most cases higher than a regulated passbook such as Livret A or LDD.
The benefits of life insurance don't stop there:
– Availability of funds: you have the possibility to withdraw your capital in case of need. However before 8 years old, you are subject to income tax
– A multiple choice of the return on your investments at the time of your retirement: annuity, successive withdrawals or in one go
– A tax niche: 7.5% levy after 8 years of opening life insurance instead of the progressive income tax scale
– Tax exemption in the event of inheritance of one's assets to relatives
Life insurance is an ideal savings product for retirement, but also for passing on wealth to family.
How to choose life insurance?
Choosing an online bank for your life insurance is a good solution to achieve real savings on the costs incurred but also to benefit from the best returns on the market.
Indeed, opening a life insurance contract with an online bank allows you to obtain entry fees, payment and arbitration at 0 € but also much lower management fees than a traditional bank or insurer. .
The tools made available by brokers or online banks allow simplified management of your savings, with support from experts through different channels: telephone, email or chatbots. You will thus benefit from support while greatly reducing the costs of life insurance contracts in traditional players. As a result, you will be able to drastically increase your returns and optimize your savings.