2023-04-20 14:00:00
It is not always easy to know where to invest your money. However, some investments become much more profitable than others. This is particularly the case for funds in euros which have interest rates which now stand at 3.50% net. But then why should we be tempted by an investment in life insurance? We will explain everything to you.
What are life insurance euro funds?
It is a choice of financial investment that allows savers to obtain an attractive return while protecting their capital thanks to the guarantee provided by insurance companies. They are considered one of the safest investments on the market, which makes them an attractive option for diversifying your savings and maximizing your returns. It also allows you to deal with uncertain economic conditions and historically low interest rates.
Why opt for this type of investment?
Investing in life insurance euro funds is perfectly safe for a number of reasons. It is therefore relatively important to know them all.
Capital guarantee
Whatever the economic context, your capital is guaranteed by the insurance company, which limits the risks associated with changes in the financial markets.
An advantageous tax
After 8 years of ownership, gains from euro life insurance funds are subject to a Single Flat Rate Deduction of 12.8%, as well as social security contributions (17.2%). This equates to an overall rate of 30%, which is lower than most other financial investment options.
An attractive return
In 2023, euro life insurance funds offer a rate of return well above 3.50%, which places them well above other risk-free investment options such as bank books or interest-bearing accounts. This attractiveness is mentioned in particular by AGEFI, which is the leading information service for finance professionals in France. Indeed, it indicates that the rates which had been falling for many years are starting to rise once more.
Life insurance: the first yields of funds in euros exceed 2%. After more than ten years of almost uninterrupted decline, most players should show rising rates this year.
Par @johanncorric https://t.co/roaPLpkAc5— AGEFI (@AgefiFrance) January 5, 2023
How to optimize your return with euro funds?
In a context of low interest rates and low yields, it is essential to adopt a diversified savings strategy to adapt to market developments and maximize gains. Thus, it may be interesting to combine euro funds with other types of investment, such as units of account.
Combine euro and unit-linked funds
Incorporating a unit-linked allocation into your life insurance policy can increase overall performance while maintaining the security offered by euro funds. Some contracts even offer bonuses on the return of funds in euros if a minimum amount is invested in units of account. This is generally a bonus of +1% net on the return of the fund in euros.
Diversify your investments
To optimize your savings, it is also important not to limit yourself to a single type of financial investment. Here are some categories of investments and financial investments to consider:
- Bank investments: they generally offer you a low, but guaranteed and risk-free remuneration. They can be interesting for maintaining precautionary savings;
- Savings books: they allow you to obtain returns that are often higher than those of bank investments. You can therefore diversify your savings while limiting the risks;
- Equities: they offer significant return potential, but are also more risky. It is particularly recommended to integrate them into a long-term investment strategy and to diversify your portfolio well;
- Bonds: they represent a compromise between security and return. However, their performance may vary depending on market conditions and the issuer.
With guaranteed rates above 3.50% net in 2023, euro life insurance funds are a safe and profitable savings option for investors. However, it is essential to diversify your investments and adopt an investment strategy adapted to your objectives and your risk profile in order to optimize your returns. You should absolutely not hesitate to consult a financial adviser to assist you in your investment choices.
What are the benefits of life insurance?
Life insurance provides you with various advantages such as reduced taxation, secure transmission of capital, or the possibility of converting your capital into a life annuity.
What is the maximum deposit limit for life insurance?
The maximum deposit amount for life insurance is set at €30,500 per subscriber. However, it is important to know that this limit only applies to the payments made and not to the capital transmitted. Winnings from deposits made up to €30,500 are also exempt from inheritance tax.
How is the future of life insurance shaping up?
In 2023, life insurance remains a particularly profitable investment option. Savers who opt for an allocation in euro funds benefit from an average rate of return of 1.30%, while those who invest exclusively in units of account can obtain a return of more than 20%.
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