Insurance companies are increasingly pushing savers to diversify their investments: subsidized rates, no fees, fixed payments … Life insurance professionals are ramping up initiatives to limit investments in euro funds. Can we still invest 100% in a guaranteed fund today?
By subscribing to life insurance, the saver has the possibility to invest their money in the long term to make it grow. But he does not necessarily want to risk investing in units of account (UA). These unsecured investments are increasingly popular in life insurance contracts because they depend on market volatility, but are likely to be more profitable. The share of contributions associated with the units has been reached 39% in 2021 and 40% during the first quarter of 2022, according to figures from France Assureurs.
Insurance companies pay for diversification
Logic ? Inflation reached in June 5.8%Over the course of one year, returns on Euro funds are now mostly flat, just above 1%. Under these circumstances, choosing to invest in a portion of your UCLA life insurance seems legitimate to try to improve your performance.
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But if the units of account are “successful”, it is not only because the savers are adjusting to the economic situation. Insurance companies also pay for diversification. To avoid massive inflows into the Euro Fund, the capital of which is guaranteed, some insurance companies impose a share of the investment in units of account. Over the years, requiring savers to invest a portion of their savings in UC has become the norm.
However, some savers remain wary of the risk of loss associated with unit-related investment. And if you anticipate a significant withdrawal from your life insurance in the medium term, you can choose to be cautious with 100% Euro funds.
What life insurance contracts are still allowed today 100% investment in funds in EUR ? Contrary to what mainstream rhetoric suggests, many contracts still allow you to bet everything in the box in euros. Even if the insurance companies and distributors involved will not necessarily highlight it. Below is a non-exhaustive list of these contracts.
These contracts where you can pay 100% into the fund in Euro
|a necklace||believer||Payment fee||2021 أداء performance|
|Boursorama Vie (Exclusive Euro Box)||general||0%||1.35%|
|Swisslife’s general assets||Swisslive||0%||0.80%|
|Monabanq Life Premium (Eurossima Fund)||general||0%||0.75%|
|Strength Selection (Eurossima Fund)||general||0%||0.80%|
|We preserve the heritage||serverfuture||0%||1.30%|
|Multi Life||what’s up||0%||1.15%|
shrinkage with Payment fee
|Free future savings account||MIF||2%||1.70%|
|Garance savings||outburst||3% max||2.75%|
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Take into account the level of the reimbursement fee
This table details contracts with or without payment fees. why ? Because The issue of deposit fees arises even more if you bet exclusively on the fund in EUR. Example: You put €1,000 in a Euro fund with a 2% deposit fee. Only €980 has already been invested, after fees are charged. With the current €money bonus, it will take at least two years for your savings to return to €1,000 and for the contract to finally start increasing your savings.
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Payment fees also sometimes vary depending on the broker chosen in the same contract. Life insurance for a MIF Mutual Fund, for example, imposes pricing 2% (of the amount invested) in the fund in EUR but do not charge any deposit fees for account units.
Without UC … No Return Bonus for the Fund in EUR
Insurance companies frequently use another method to encourage you to bet on UCs: a payout bonus. The return on your Euro money is increased based on the portion of your savings invested in unit linked funds. Reference may be made, in particular, to the contract Allianz Multi Savings Lifewhich in 2021 provides an average return of 0.88% on the Euro Enhanced Fund until 1.19%. The same for the decade Arpeggios by AXA Which offers a performance of 0.90% up to 1.35% In 2021, according to the portion invested in units of account. Here again, here’s something to consider if you’re aiming for a 100% Euro financing contract.
2022 arrange 2021 rates for life insurance funds in euros
Investing in a Euro Fund, Yes … But Not Too Much
Other contracts are still only available for payments in euros…but with certain conditions. To be able to take advantage of them without investing your savings in account units, you do not need to exceeds a certain amount of investment.
|a necklace||believer||Payment fee||Conditions||2021 أداء performance|
|life evolution||bee insurance||0%||Payments 100% Euro funds up to 30,000 Euros (after that, a minimum investment of 30% in UCSD)||1.31%|
|Munyuan||general||2%||It is 100% accessible within €50,000, per calendar year of membership, then €25,000 per calendar year in the following years.||1.70%|
Created in 2014, the eurocroissance fund is another alternative offered by insurance companies. What distinguishes it from the classic Euro Fund? The capital is only guaranteed after a predetermined period (8 years minimum).
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