To date, life insurance remains the most popular investment in France. Indeed, it was predestined to prepare the owner's retirement. But why is it increasingly attractive to consumers? How exactly does it work? We'll take a look at the subject...
Life insurance in a nutshell
Life insurance is an insurance contract taken out with a banking institution or an insurance company. The subscriber will then be required to pay a sum according to the terms of the contract and at the same time will receive interest for a specified period of time. Several conditions can be included in the contract: the amount of the payments, the duration of the contract, the regularity of the payments, the interest rate, etc. Once the term has expired, the insurer will have to pay out the sum saved with interest, either as a capital sum or as a life annuity.
Note: Life insurance makes it possible to maintain a good standard of living even after retirement. And it is also a good way to pass on money to your heirs and loved ones.
Life insurance: a more flexible solution!
Up to now, there is no ceiling on payments. This is what makes the system so attractive. Whereas for the Livret A, the ceiling is 22,9950 euros for individuals and 76,500 euros for associations.
Similarly, savings are not blocked. If necessary, the holder can request partial or total "redemption" at any time. Nevertheless, it is to be expected that the fees will be more or less important depending on the institution. To avoid unpleasant surprises, read the terms of the contract carefully before signing.
In addition, there are several types of life insurance that can meet all requirements: investment in euros, investment in units of account or UC and investment in multiple units.
Finally, the subscriber can designate one or more beneficiaries of his choice, family members or not! And he also has the right to change the list as he wishes.
Life insurance or Livret A
According to studies carried out, for the year 2017, the total net investment flows in the Livret A passbook savings account are estimated at €8 billion compared with €35 billion for life insurance. Thus, we can conclude that life insurance is the best savings vehicle for the French, even if the rate has decreased slightly compared to 2016.