The life insurance contract is a savings solution allowing you to organize and optimize the management of your assets over the long term. It meets many heritage objectives. Review.
This envelope, managed by an insurer or a mutual insurance company, gives access to many investment vehicles, from the most cautious to the most dynamic, invested in different asset classes or geographical areas. These supports can be guaranteed in capital (funds in euros), or involve a risk of capital loss in exchange for a higher potential return (units of account). Asset allocation is carried out according to the profile of the investor and the investment horizon.
Its flexibility of use and the relative liquidity of capital make it a privileged asset management tool. Indeed, as a subscriber / member, it is possible to make one-off or regular payments depending on your savings capacity and the capital remains available if needed.
Life insurance makes it possible to meet five patrimonial objectives.
1- Build up your capital
Taking out a life insurance contract meets the asset objective of building up capital over time. Depending on a determined savings capacity, it is possible to fund the contract at any time through one-off payments or to make regular savings through scheduled payments.
2- Valuing your capital
Life insurance is a way to grow your capital. The media available offer the possibility of constructing an asset allocation in line with the investor profile and the investment horizon.
Funds in euros have the advantage of guaranteeing the capital at least up to the net premiums and of capitalizing the “interest” acquired year after year thanks to the ratchet effect. Thus, not only the invested capital is protected but it progresses regularly. Euro funds are generally mostly invested in bonds, but may be partially invested in equities or real estate.
Unit-linked vehicles enable investment in more dynamic asset classes in order to capture the potential rise in the financial markets but, on the other hand, present a risk of capital loss.
3- Receive additional income
The life insurance contract makes it possible to collect additional income thanks to regular or occasional partial redemptions (see here the taxation of redemptions in life insurance ).
These redemptions benefit from preferential taxation, only the “interest” share on each redemption being taxed. In addition, the conversion of the capital into a life annuity provides guaranteed income for life in return for the unavailability of the capital.
4- Pass on your heritage
Life insurance makes it possible to anticipate and prepare for its transmission. By designating beneficiaries, the subscriber ensures, on his death, the transmission of a capital to his descendants, spouses and/or family, outside the rules of legal inheritance. It can also designate a beneficiary outside any family relationship, or even an association.
5- Protect your spouse
Life insurance is a wealth management tool to improve the situation of the surviving spouse . By designating the spouse as the beneficiary of the contract, it is possible to attribute to him a share of the inheritance greater than that which would normally accrue to him in the succession. Indeed, subject to manifestly exaggerated premiums, life insurance contracts are not subject to legal inheritance.
Life insurance also makes it possible to protect your cohabiting partner or PACS partner whose interests are not protected by the civil law of succession , which considers them as third parties to the succession. Beyond the transmission of a capital, certain contracts settled in the form of a life annuity for the benefit of the subscriber, protect the surviving spouse thanks to the reversion.
The articles published on this blog have been written by Primonial and have an exclusively informative objective. They are not intended to be exhaustive and remain general in nature. Furthermore, the assessments made reflect the opinion of their authors on the date of publication and are likely to change subsequently.
Neither the articles nor the information contained therein can be considered as investment advice, an investment proposal, an offer or a solicitation to buy, subscribe or sell a financial instrument or any other product and investment support.
The legal and tax information contained in this document is up to date at the time of its publication and may be modified subsequently. The simulations presented were carried out according to financial assumptions and the regulations in force to date, these elements are likely to evolve. The information contained in this document was taken from sources believed to be reliable and up-to-date at the time of its publication, however its accuracy cannot be guaranteed.