life insurance or PER?

Life insurance remains the flagship investment of the French, etc., for many years. In 2019, another competitor appeared: the Retirement Savings Plan (launched by the PACTE law). Both contracts offer very tempting tax benefits. It can be difficult to make the right choice. Profitability remains a criterion to consider. Life insurance vs PER ; What is the most profitable investment?

Update on the profitability of life insurance and PER

According to INSEE figures, the gross profitability of life insurance is 1.50% for fiscal year 2021. By comparison, the rate of return on the best PERs is about 1.35% in 2021. We are talking here about the remuneration of funds in euros that are eligible for both life insurance and PER.

Of course, PER allows you to invest in units of account (CPUs) as well as life insurance. They are more profitable, theoretically, but more risky. In general, savers prefer to invest their money in less risky media, such as euro funds, at the beginning of the savings phase. Then start investing more in risk support, such as UC and other support funders (SCPI, SCI, SICAV, etc.).

According to financial experts, the PER offers a good rate of return compared to life insurance. Due to this, payments made during the savings phase are deductible from taxable income. They therefore benefit from a tax exemption.

Life insurance and PER: eloquent figures for the 2021 financial year!

There is no shortage of investments dedicated to preparing for retirement. There is something for everyone. En tête de liste in retrouve especially life insurance whose outstanding amount reached 1,876 billion euros at the end of 2021, according to France Assureurs.

For its part, the PER is detained by 2.6 million savers on 31/12/202. 73% of contracts are PER individuels. Obviously, these are eloquent figures for life insurance and PER.

Note that the net collection of life insurance has remained exceptional since 2011. It jumped by + € 2.2 billion in March, and by € 8.4 billion in the first quarter of 2021. More specifically, 14.3 1 billion euros in contributions were paid on life insurance contracts in March 2022, an increase of + 1.1 billion euros compared to March 2021.

The units of account (UC) represent 39% of contributions in March and 40% at the beginning of the year. 12.1 billion euros in benefits were recorded in March 2022. They therefore increase by +0.8 billion euros. Funding in euro progresses, and + 0.6% to 9.8 billion euros. They are significantly larger than the CPUs, which rose from + 0.2% billion euros to 2.3 billion euros.

The PER, for its part, has finally crossed the symbolic threshold of 3 million insured in March 2022.

Remember that the transfer of a life insurance policy to a PER is quite possible. In the first quarter of 2022, 128,000 contracts have already been transferred under the PACT Act (excluding transfers of pension insurance contracts to a PER), compared to 76,000 in the 4th quarter of 2021. In total, € 4.5 billion were transferred in Q1 2022, compared to € 3.1 billion in Q4 2021.

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