How to choose the right life insurance for you

I want to choose the right life insurance for me. How to do ? In fact, life insurance combines many advantages in terms of performance, availability of savings and tax optimization. Taking out a life insurance contract is a good idea yet less simple than it seems at first glance. Among the many contracts offered by insurers, how can you find your way around and choose the one that will really correspond to your financial situation and your objectives?

This article will help you see things more clearly by reviewing a series of determining criteria to analyze before taking out your life insurance. Thanks to this complete overview of the key aspects, you will know how to confidently select the best life insurance adapted to your needs. So, ready to make the right choice? First of all, how does life insurance work? What are its advantages and disadvantages? But before you start, here's how Earn 70 euros / Day to listen to Music. Let's go!

How does life insurance work?

Life insurance is a contract signed between an insurer and a subscriber. The latter makes regular payments called " premiums » on the life insurance contract that he has taken out. These premiums are then invested in investment vehicles that the subscriber can choose himself. Throughout the duration of the contract, the gains and income generated by the invested premiums are exempt from tax, with the exception of social security contributions. The subscriber retains the freedom to recover all or part of their savings at any time if he wishes, by withdrawals or redemptions.

In the event of the subscriber's death, It is the insurer who pays a capital sum or an annuity to the beneficiary(ies) initially designated in the contract. The transfer of this capital upon death also benefits from an advantageous tax framework, with only deductions social after 70. The subscriber also retains control over the beneficiary clause and the options for withdrawal in the form of a life annuity or capital. Life insurance thus combines yield, availability and tax and inheritance optimization.

Advantages and Disadvantages of Life Insurance

Life insurance is one of the preferred investments of French savers and for good reason: it offers many tax and inheritance advantages that explain its success. First of all, from a tax perspective, the interest generated within life insurance contracts is exempt from income tax after 8 years of ownership. In concrete terms, as long as the contract is kept, no tax is due. In addition, in the event of redemption after 8 years, the gains made are also completely exempt from tax. Only social security contributions, at the rate of 17,2%, are applied.

In terms of inheritance, life insurance allows you to prepare your inheritance in the best conditions. The capital is in fact transferred directly to the beneficiary(ies) designated in the contract without going through the inheritance. This avoids high notary fees and considerably speeds up the process of settling the inheritance.

Furthermore, the wide variety of investment vehicles offered is a major asset of life insurance. Secure euro funds, riskier units of account, SCPI, SCI… each saver can adapt the vehicles to their profile and objectives. This unique range of choices facilitates diversification.

Of course, life insurance has some limitations. Its management fees are high, between 1% and 2% per year, impacting the yield. And the remuneration of euro funds continues to fall, due to the context of low rates. But its advantages remain multiple as long as the contract is in line with the profile of the insured.

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Tips for choosing a good life insurance

You want to choose a good life insurance for you, there are elements on which you will have to base yourself. Here they are :

🎯 Subscriber profile

First of all, it is essential to clearly identify your investor profile and your wealth objectives. Are you prepared to take significant risks to boost your savings or do you prioritize the security of your capital above all? Are you looking to build up additional income for retirement or rather optimize the transfer of your assets? your heritage to your loved ones? Your needs will direct your choice towards more or less risky contracts, with appropriate options.

Don't hesitate to take the test of your saver profile on the AMF website to see more clearly your risk appetite. This in-depth analysis of your situation is essential to select the life insurance that best meets your expectations.

🎯 Fees charged

This is undoubtedly one of the most determining factors for comparing life insurance contracts in depth. Entry fees, annual management fees, arbitration fees between funds, possible exit fees... All these different cost items directly reduce the profitability of your contract each year. So compare meticulously the detailed tariff schedules of the various insurers to find the most competitive contracts on the market.

Some low-cost players, both online and offline, are now displaying unbeatable fees. This criterion can really make a difference in long-term performance.

🎯 Investment vehicles

Another determining variable: the range of investment vehicles offered by each insurer. Euro funds, more or less risky account units, SCPI, real estate OPCI... Check carefully that investment options correspond well to your profile determined above. So, for a cautious profile, opt for a contract with a solid and efficient euro fund.

More daring investors will instead seek a wide selection of account units to boost their performance. There are contracts adapted to each “appetite” for risk.

🎯 Accessibility

Depending on the budget you have for investing in life insurance, you may not be able to afford contracts with a minimum down payment too high. So check carefully in advance that the entry threshold corresponds to your contribution. Also compare in detail minimum scheduled payments for recurring investments. Some contracts are much more flexible and accessible than others in these aspects.

Life insurance must remain a democratized investment, open to as many people as possible with affordable entry tickets.

🎯 Output options

Finally, study carefully output options offered by each insurer. Not all of them necessarily offer the same terms for recovering your savings or transferring the capital upon death. Depending on your wealth plans, pay attention to the conditions offered for partial or total redemption, withdrawal in the form of a life annuity or even beneficiary clauses. This will allow you to adapt your life insurance contract in every way to your future needs.

Conclusion

After this in-depth analysis, you now have all the elements to confidently select the life insurance best suited to your situation. Remember that the ideal contract is the one that perfectly matches your investor profile, your wealth objectives, your budget and your future projects. Take the time to study in detail the different aspects covered: fraises, financial support, accessibility, exit options...

Methodically compare several contracts by focusing on your priority needs. And do not hesitate to make to accompany by a professional, who will guide you according to your profile towards the best options.

FAQ

🚀 What are the important criteria for selecting my life insurance?

The target return, the level of risk accepted, the availability of the necessary funds, the costs of the contract and its transmission characteristics must be taken into account. The adequacy with your personal situation and your savings objectives is essential.

📈 How do I know which type of support to choose (euro funds or units of account)?

Funds in euros are preferred if, above all, you want to secure and enhance your capital without risk. Units of account, invested in stocks and real estate, are preferred to increase your potential gains.

🤔 Should I opt for the “new gen” contracts now?

Yes, new generation contracts are more transparent about fees and offer new management options under mandate, automation of investments, etc. But it always depends on your needs.

👪 What clauses should be included in the event of death or disability?

You can designate your spouse or children as beneficiaries. But it is also possible to include clauses such as reversibility to the surviving spouse or education annuities for your children.

💰 Which insurer should I trust with my contract?

Choose reputable companies like Generali, Axa, Allianz or Macif. Compare at least 3 to 5 quotes before making your decision. Don't hesitate to consult customer reviews on the reliability and quality of service.

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