Insurers are increasingly pushing investors to diversify their investments: subsidized rates, no commissions, limits on payouts… Life insurance specialists are intensifying initiatives to limit investments in European funds. So, can we still invest 100% in guaranteed fund today?
By subscribing to life insurance, the saver has the opportunity to invest his money in the long term for its growth. But he does not necessarily want to take the risk to invest in units of account (UA). These non-guaranteed investments, because they are subject to market fluctuations but potentially more profitable, are becoming increasingly popular in life insurance contracts. The share of share contributions has been reached 39% in 2021 and 40% during the first quarter of 2022, according to France Assureurs.
Insurers insist on diversification
Logic? It reached inflation in June 5.8%, more than one year, and the return of funds in euros is now mostly stationary, just above 1%. Under these conditions, the decision to invest a portion of your life insurance in UC seems legitimate to try to improve your performance.
Life insurance: which units to choose to beat inflation?
But if the units of account are a “hit”, it is not only because depositors are adjusting to the economic situation. Insurers are also pushing for diversification. In order to avoid massive inflows to the Eurofund, the capital of which is guaranteed, some insurers introduce a share of the investment in settlement units. Over the years, requiring depositors to put a portion of their savings into UC has even become the norm.
However, some investors remain wary of the risk of loss associated with equity investments. And if you expect a large withdrawal from your life insurance in the medium term, you may choose to be cautious with 100% Euro funds.
What life insurance contracts still allow today 100% investment in funds in euros ? Contrary to what the mainstream discourse suggests, many contracts still allow you to bet on the fund in euros. Even if interested insurers and distributors will not necessarily cover it. Here is a partial list of these contracts.
These contracts where you can pay 100% to the fund in euros
|Contract||Insurer||Commissions upon payment||Performance of 2021|
|Boursorama Vie (Exclusive Eurofund)||Generali||0%||1.35%|
|Swisslife General Assets||Swisslife||0%||0.80%|
|Monabanq Life Premium (Eurossima Fund)||Generali||0%||0.75%|
|Power Selection (Eurossima Foundation)||Generali||0%||0.80%|
Contracts with commission upon payment
|Future Free Savings Account||MIF||2%||1.70%|
|Guaranteed savings||Madder||3% max||2.75%|
Comparative savings books : 9 proposals compared to 3% return
Consider the level of commission payments
This table separates contracts with and without commissions for payment. Why? Because the issue of the deposit fee arises even more if you bet exclusively on a fund in euros. Example: You invest 1,000 euros in a fund in euros with a deposit fee of 2%. Only €980 is actually invested after commission. At the current Euro reward, it will take you at least 2 years to get your savings back to €1,000 and for the contract to finally start helping your savings grow.
Life Insurance: 2 Years of Lost Profits Due to Payout Fees!
Payment fees also sometimes vary depending on the environment selected within the same contract. Mutual MIF life insurance, for example, sets a price 2% (of the invested amount) to the fund in euros, but does not charge any deposit fees for settlement units.
No UC… no Euro fund bonus refund
Another method often used by insurers to encourage you to bid on UC: the yield bonus. Your fund’s profit in euros increases depending on the part of your savings invested in mutual funds. One can mention, in particular, the contract Allianz Multi Savings Lifewhich in 2021 offers an average return of 0.88% on its extended Euro fund to 1.19%. The same with the contract Arpeggio from Axa which provides an efficiency of 0.90% from to 1.35% in 2021 according to the invested share in calculation units. Again, this is something to keep in mind if you’re looking to secure a 100% Euro financing contract.
2021 rate rating for life insurance funds in euros
Investments in the fund in euros, yes… But not too much
Other contracts are currently available for settlement only on the fund in euros… But under certain conditions. To benefit from this without investing your savings in units of account, you don’t need to exceed a certain amount investments.
|Contract||Insurer||Commissions upon payment||Deadlines||Performance of 2021|
|Evolution of life||Insurance of bees||0%||Payments of 100% of funds in euros are possible up to 30,000 euros (in addition, a minimum investment of 30% in UC)||1.31%|
|monivan||Generali||2%||100% availability up to €50,000 during the calendar year of membership, then €25,000 per calendar year in subsequent years.||1.70%|
An alternative to a Eurocroissant
Another alternative offered by insurers is the eurocroissance fund created in 2014. How does it differ from the classic Eurofund? Capital is guaranteed only after a predetermined period (minimum 8 years).
Life insurance: the best contracts