2024-01-21 05:55:00
Barthélémy Philippe / Photo credit: AFP
modified to
7:40 a.m., January 21, 2024
After a historic outflow of more than 25 billion euros last year, to the benefit of the Livret A in particular, insurance companies and banks are counterattacking by boosting the returns on their euro funds. For economist Philippe Crevel, this is an opportunity to be seized.
What if life insurance became attractive once more? Over the entire year 2023, the average rate of euro funds for said life insurance might be 2.5%. And this is just the beginning, as companies are offering bonuses on new payments to compete with Livret A and term accounts. 3 to 5% return is thus offered for the first year at Axa, Corum life or Garance.
For Philippe Crevel, director of the Circle of Savings, we must seize the opportunity. “Today is a good time to return to life insurance. Companies are making efforts with improved rates.”
A tax advantage
Another argument in favor of life insurance: savings rates, in the short term, will fall, recalls the economist. “We have reached the maximum remuneration on term savings accounts and even on regulated savings. Short-term rates have started to decrease slightly. By the end of the first half of the year, it is very likely that households will reallocate part of the sums which are today in the term accounts towards the Euro Life Insurance funds”, underlines Philippe Crevel.
Life insurance which also offers a tax advantage. For contracts of more than eight years, the reduction reaches 4,600 euros.
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