2024-01-05 03:00:00
In France, thelife insurance is an investment widely favored by savers due to its advantageous taxation and the security it offers, particularly in the event of inheritance. However, it is not always easy to assess the real cost of these contracts. With this article, we try to shed light on the criteria to take into account to answer the question: How much does life insurance cost in France in 2024?
Entrance fees: beware of differences between companies
In the context of a life insurance contract, the entry fee corresponds to the amount deducted by the insurance company during the initial payment of savings.
These fees generally vary between 0% and 5% of the amount paid. They can therefore be a determining factor in the choice of your insurer. Especially since some insurers impose a minimum payment on your life insurance.
It should be noted that many insurers now offer contracts without entry fees, as part of promotional offers or for subscriptions made online, for example.
Don’t overlook this possibility during your research. Carefully compare the rates charged by several organizations before making a decision. When making your decision, consider that returns differ from one life insurance policy to another: see how much life insurance earns for yourself.
Remember that entry fees are often negotiable, particularly if you are investing a large amount or if you are already a customer of the insurer. It may be worth speaking directly with your advisor to obtain a reduction, or even a complete waiver, of the entry fee.
Management fees: a weight on performance to take into account
Besides the entrance fees, management fees are a key component of the cost of life insurance.
These fees correspond to the amount taken each year by the insurance company in return for managing your savings. They are generally between 0.6% and 1.5% of the amount invested, although they can be higher for some offers.
Management fees can weigh heavily on the overall performance of your contract and thus reduce your potential gains. They must absolutely be taken into account before taking out life insurance.
To better understand this notion, let’s take an example:
Therefore, it is essential to compare the management fees offered by several insurers before committing. You can obtain information from Winalto for example, Maaf life insurance.
Of course, this is not an isolated indicator: the level of fees must also be weighted according to the performance displayed and the quality of the service offered by the organization (availability and responsiveness of the advisor, flexibility and diversity of contract options, etc.).
Diversification: what cost for investment options?
L’life insurance, it is also all the types of support on which to direct your savings. This diversification can offer a better prospect of return, but has an impact on the costs incurred.
For exemple :
- Funds in euros: life insurance contracts generally allow you to invest part or all of your savings in euro funds. These funds have the advantage of being secure (capital guarantee) and therefore offer a certain peace of mind to the saver. Management fees for euro funds are often between 0.6% and 1%.
- Units of account: These riskier vehicles, such as shares, bonds, or even SCPIs, can offer higher return potential than euro funds. However, this risk-taking is generally accompanied by higher management fees, which can reach up to 3% for certain contracts.
To better understand how life insurance works, please click on the link.
Analysis of the elements that can influence your choice in 2024:
The evolution of interest rates or even movements in the financial markets are all elements to monitor. They can notably impact the return on funds in euros and therefore the envelope allocated to them in your investment strategy.
Although the rules applicable for this year have not undergone any major change compared to the current regime, certain adjustments are still likely to be adopted during the year or subsequently. Stay attentive to information and updates on taxation related to life insurance to optimize your investment.
The cost of life insurance in France in 2024 will mainly depend on entry fees, management fees and the investment options chosen.. It is also important to pay attention to developments in the economic context and applicable taxation.
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