Life insurance is the preferred placement of French . It helps to build up savings over time while retaining a share of availability . However, life insurance should not be confused with ‘Insurance . The latter guarantees a beneficiary of capital or an annuity death of the insured . Life insurance can be a good tool as part of a series but it is not its primary purpose .
In France , life insurance has many tax benefits and favorable remuneration . The long-term rates are theoretically always superior to short-term rates . It is therefore preferable to place their savings in eight years and more than a few months . Life insurance is more profitable by nature as a passbook savings . The life insurance contract binds a purchaser of insurance. This contract may be individual or collective . In the latter case , any change in contract deal at the association of the insured and not the insured itself. The individual contract allows better control of changes to the contract but also poorer adaptation of the product over a long period .
At the beginning of his life insurance policy, the policyholder will be offered primarily two types of contracts:
- A contract on euro fund or single- carrier
- A contract for the fund unit- or multi- media.
Euro funds are funds that allow you to secure your initial capital . The latter may be less than the amount you have paid. However, given the low risk , you will get a low yield . Euro funds have been criticized in 2005-2006 because of their very poor performance , but allowed numbers of subscribers not to see their savings fly during the 2008 financial crisis .
The multi- media fund of funds are invested in stocks, bonds, and other securities. Risk taking can be very high but the performance displayed are much higher . It goes without saying that the more you move towards retirement age , and that savings will be useful in everyday life, the more you will tend to choose funds in euros.
In addition to the type of life insurance , your advisor will also propose to choose the form of management you want . In fact, life does not necessarily mean » hands are tied » . It is possible you in a free management, choose yourself accurately the funds in which you intend to invest. In a streamlined management , you define your profile and life insurance will be managed accordingly. You can also predict the future by choosing a management on the horizon. The share of assets evolve over time . The older you get , the more risky assets will be arbitrated in favor of risk-free assets .
Life insurance is a long-term investment but the savings can be unlocked before . To do so, you can make a partial redemption. This means that you take some of the money invested but leave open your life . The total redemption includes his closing your life and the release of all the funds . Your bank may also offer an advance due to the amount of your life insurance . However, this advance will involve interests.
While the tax and estate plan are case of the French parliament , the various costs associated with life insurance are freely determined by the insurer. There are a multitude of fees that can be added to your investment . Internet has greatly reduced the costs due to the emergence of specialists in life insurance, but do not hesitate to read the fine print . And your life will suffer :
- Application fee : a fixed sum of a few dollars to the signing of the contract;
- Entry fees : a percentage of the amount initially invested but also on each payment;
- Management fees : a percentage related to the chosen fund . Attention , funds have themselves management fees ;
- Arbitration costs : costs incurred when changing money in a multi- media contract.
Even before winning the penny with your life , you can lose fat by choosing hurt your investment .
Although the taxation of life insurance is particularly advantageous , since in recent years , it has undergone a significant increase . Indeed the classical taxation is cumulative social contributions such as the CSG and the CRDS , the learning curve on an upward slope. The taxation of life insurance depends largely on the duration of the placement. So if you redeem (partial or total) of your life insurance before 4 years , you will be taxed at 35 % interest , between 4 and 8 years: 15 % after 8 years , a tax of 7.5 % will be but applied a discount of 4,600 euros ( 9,200 euros for a married couple) will substantially reduce the bill.
The legislature has also provided legal exit doors . So if you are laid off , set early retirement or become disabled for at least the second category , the tax disappears if you purchase your life insurance during the fiscal year of the occurrence of this fact.
The inheritance system still depends on its three factors that achieve up to a total exemption of gains seen in succession. This is the opening date of the contract, the date of payment of premiums and the age of the policyholder at the time of payment of premiums.
Life insurance remains an excellent investment that will make you save in the long run . It is difficult not to use the savings passbooks as readily available , so it is less easy to withdraw money from a life insurance policy . In addition, life insurance does not know the word limit , and you can pay as much as you want in your life or your insurance .