Published on : 18 March 20205 min reading time
Life insurance is a financial investment that allows you to make your money grow. The level of risk varies according to the chosen medium. It is therefore important to turn to the formula that best suits your investor profile. Moreover, thanks to online comparisons, it is easy to find the most suitable type of life insurance.
What are the different types of life insurance contracts?
Life insurance is more profitable in the long term. It is a versatile product that benefits from a good return compared to other savings. In addition, the interest generated is not subject to tax and the supports offered are multiple: shares, bonds, real estate investments, guaranteed euro funds… In short, there is something for every profile.
Currently, the supports are grouped into two categories:
- funds in euros
Generally, they are managed by the insurer and are invested in European government bonds, equities or real estate. The advantage? The capital is guaranteed as well as the interest earned. Your capital will therefore increase year after year. The only disadvantage? The profitability, which is minimal compared to that of a unit trust.
- The UC units of account
They are more dynamic supports that allow a better return on investment. You can invest in equities, bonds, real estate, trackers and many others, such as hedios heritage products. However, before taking the plunge, be aware that there is a risk of losing capital (some or all of it).
It should be noted that arbitration is possible. This means that you can sell funds in euros to invest in a CU and vice versa, switch from a share to a real estate.
Why turn to life insurance?
Flexibility is one of the major assets of a life insurance contract. Indeed, you can switch from one support to another according to your desires and according to the opportunities that arise, with the aim of optimising your gains while minimising the risks. In the same way, the money is not blocked. The holder can withdraw money at any time. This can be a partial or total redemption. If you make a surrender on a contract older than 8 years, then you benefit from a tax exemption.
In addition, the insurance offers undeniable advantages with regard to inheritance. Obviously, the beneficiaries designated in the contract in the event of death do not pay inheritance tax if the sum received does not exceed €152,500 per person. Also, there is no payment limit and anyone can open several life insurance policies, regardless of age. Parents, for example, have the right to open a life insurance policy for a newborn child.
Moreover, you can pay money without any constraint. And for some contracts, the first deposit is the only condition. This way, you don’t have to pay money later on. Entry-level tickets are available for 100 euros.
What are the criteria to be taken into account?
The choice of medium depends on the risk you are prepared to take. In order not to put all your eggs in one basket, give preference to insurers who offer multi-support contracts. You never know. Later on, you may be tempted by other supports to boost your investments. For those who want to limit the risks, they will invest more on euro funds. On the other hand, to maximise profits, you should not hesitate to invest a larger share in unit-linked products. Nevertheless, for a balanced management, the two supports should be divided equally.
Once you have found the formula that suits you best, other parameters should be checked. First of all, find out about the management method. With free management, you can define the allocations yourself. With managed management, you give a mandate to a manager who will manage your assets on your behalf according to your profile. Then, take into account the performance of the life insurance and compare the fees, as the amount can vary from simple to double depending on the company: entry fees, management fees, arbitrage fees…
Finally, refer to reputable players in the sector such as hedios heritage. In addition to the usual services, you can also benefit from professional advice.
How do you compare the online offers?
Are you having trouble finding the most appropriate formula? It is advisable to consult the online comparisons. On many sites, you can access the opinions of private individuals and professionals who have used this type of investment. You can thus better compare the offers and choose the one that best suits your profile. For example, hedios’ products have received many positive comments. If you are interested in structured products, take a look at the hedios opinions. However, take the time to compare the different offers before making a decision. And don’t forget to read the terms and conditions of the contract carefully to avoid unpleasant surprises. Thanks to the Internet, you will no longer have to travel to get personalized quotes.
What is the best online life insurance policy?