Life insurance is today the most popular investment in France. Investing in life insurance makes it possible to benefit from a guarantee of profitability, whether total or partial, satisfactory, and to benefit from advantageous taxation. You would also be free to choose the investment vehicles for your capital, as explained in this article. Even better, the capital formed during life insurance is accessible and can therefore be withdrawn more easily than those of other retirement investments listed here. Maintaining life insurance can, however, be expensive. The F3NWS.fr team has therefore gathered in this article some tips to help you save money on your life insurance while taking advantage of all the advantages it can offer you.
Choose the ideal management method
By taking out life insurance, you will be offered three management methods, namely: free management, managed management and management under mandate. If you want to limit the costs related to the management of your contract as much as possible, you can opt for free management. In this case, you will personally take care of the management of the contract such as the choice of investments. However, this option is reserved for people who have good knowledge in this area, the risks being higher. If you do not have sufficient knowledge and skills, opt instead for the other management methods which grant you the total or partial assistance of a professional in the management of your insurance.
There is a regulatory limit applied to the costs associated with the management of life insurance. Thus, the membership and annual payment fees must not exceed 5% of the capital. Some insurers do not apply membership fees to compensate for the fees charged on each payment. It is more advantageous to pay membership fees to enjoy more affordable installment fees. This allows you to make substantial savings over the long term.
Management fees are also to be considered. On average, insurers charge between 0.70% and 0.80% in annual management fees. This does not include arbitration fees which are applied to multi-media contracts. Pricing may vary from one insurer to another despite the limits imposed by law. You can therefore study the prices offered by the different companies and banks to choose the one that is the most advantageous.
To facilitate the choice, do not hesitate to use the comparators available on the Internet. On the web, you will find free tools and search engines that allow you to compare all the life insurance offers available on the market in just a few clicks.
Get life insurance early
We tend to believe that it is necessary to have sufficient means and high income to open a life insurance. This is a misconception. Indeed, you can perfectly take out a life insurance policy even if you do not yet have sufficient resources to save. You can form a capital with a minimum initial contribution. The contributions of a life insurance are not regular unlike those of a mutual health insurance. You could therefore contribute at your own pace, the contract cannot be terminated even if you do not pay a contribution for years. The capital will remain at your disposal at all times. After eight years, you will benefit from a capital gains tax exemption. In addition, income from life insurance will only be declared in the event of redemption of the capital.