Life insurance is a contract which makes it possible to guarantee the payment of a sum of money in the form of capital or an annuity, in the event of death, redemption or in the event of survival at the end of the CONTRACT. Much more than a simple insurance, it is also a savings product which benefits from a very advantageous tax regime for the subscriber as well as for the beneficiary.
The premiums paid for life insurance are invested in different types of products. A distinction is made between mono-support life insurance which places premiums on sure values, risk-free products, while multi-support life insurance contracts also offer to invest in units of account (financial and stock market products). The latter are a little more risky, but they have a better rate of return.
While some subscribers will prefer free management of their life insurance contract, it is also possible to delegate this management to experts employed by an insurance company . Discretionary management offers two advantages. First, it allows people to save without having in-depth knowledge of the stock, financial or real estate markets. Then, it’s a way to invest with peace of mind without having to take care of anything.
For that, it’s very simple. It is possible to call on a broker or quite simply to take out life insurance online by going directly to the sites of the companies that offer this service. The advantage of online insurance is to have digital tools to keep an eye on your life insurance contract at all times and to be able to communicate more easily from your personal space. Online subscription is 100% secure and administration fees are reduced. What is interesting in the fact of subscribing to life insurance online is to be able to do it at home, with a clear head and to have time to consult all the clauses of the contract.
In 2020, the French Insurance Federation published the figures concerning the rate of return of life insurance funds in euros. This is posted at 1.30%, a slight drop of 0.16 points compared to the previous year. This drop can be explained with regard to the health crisis linked to the Covid-19 epidemic.
As we mentioned in the introduction, life insurance offers both the benefits of savings, which allows you to build up additional income, but also of insurance, which today benefits from a advantageous taxation. First, tax benefits are granted to policyholders. For example, in the event of the redemption of a life insurance contract after 8 years of seniority, it is possible to benefit, under certain conditions, from a tax deduction on capital gains. In the event of death, the capital or the annuity paid to the designated person are not part of the estate. In addition, the subscriber can freely choose the beneficiary of the life insurance contract.