Life insurance contract is one of the most used investment products by the French. It is a savings contract put in place with an insurer (and not a bank) to whom you entrust your savings so that it makes it grow.
It is also a means of preparing a donation because it is the subscriber who will designate the beneficiary of this contract when signing it.
Life Insurance Contract: Secure Management.
When taking out a life insurance policy, the money is placed in a fund in euros or in a UC (units of account) which allow profits to be made each year.
If you choose to deposit your money on a single euro fund (monosupport), savings will be guaranteed: the amount invested can never decrease . It is therefore a risk-free investment.
In addition, your insurer will commit to a minimum revaluation rate . The average yield of this type of contract is around 2.50% per year (in 2015) and has tended to drop steadily for the past ten years.
The Opportunity To Seize Opportunities.
There is also a second solution: it is the multi-support life insurance policy . This type of contract will allow you to deposit your money on several types of savings medium.
Part of the money can be deposited in a fund in euros and another part can be invested in unit-linked funds such as Sicavs, or mutual funds for example .
Most multi-support contracts offer to save on different units of account which represents several types of financial markets (real estate, stocks, etc.) with risks of varying levels. Their advantage is a rate of return around 5 to 7%.
If here too the money deposited on the fund in euros is guaranteed , this is not the case of the money deposited on the funds in units of account. They can record losses, so it is important to choose the funds in which you decide to invest.
Anyway, it is always very rewarding to deposit your savings on a life insurance contract, especially that after 8 years, the tax benefits of this life insurance become really interesting. However, nothing will prevent you from closing your contract before this date, even if it turns out to be less attractive.