For most policyholders, life insurance is first and foremost a great retirement savings product. It is true that there is no shortage of assets when it comes to this goal. But this investment is not a CV. It can also be used to secure its savings in the medium term, in a much more leased way with the cash products seen above. Just opt for a contract that offers the opportunity to invest 100% in the euro fund without risk.
By choosing an internet contract, with no entry fee, there is even a way to make your precautionary savings pay off for a few months. Because contrary to popular belief, money in life insurance is still available at all times. Admittedly, before the age of eight, earnings will be taxed, but compared to the current remuneration in Booklet A, the saver will always come out the winner.
The rates served by the best contracts in the place still exceed the 1.5% threshold. The return on euro funds has been crumbling for about ten years. From 3.40% in 2010, it fell to 1.10% in 2020, and the 2021 crude will probably be a little worse. First of all, let’s remember that there is a counterpart to this low profitability: the savings placed are 100% guaranteed (no capital loss is to be feared). And then there are the average rates on more than 250 contracts: while those of traditional bankers pull the average down, the best ones show much more attractive returns, well above 1.50%.
Your savings remain recoverable at any time, within ten days. Life insurance suffers from a bad reputation for the availability of invested savings. Let’s get back to the truth: whatever the contract, classic or Internet, you can ask yourself all the time to recover your capital, in part or in whole, by performing what is called a “redemption”. In about ten days, your money will arrive in your bank account.
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More and more insurance companies are restricting access to their funds in euros. Not all contracts are valid if you are looking for total security. Many insurers now limit access to their funds in euros, requiring that at each payment a minimum savings (from 25 to 50%) be paid into stock or real estate funds. A constraint that can satisfy savers with an investment horizon of more than ten years, not those who want to temporarily put their money out of financial turmoil. The euro funds of the contracts offered here are obviously 100% accessible.
The current system is very favorable to policyholders, especially after the eighth grade. The tax reform, initiated in 2018, has rather pampered policyholders: instead of paying a 32.2 to 52.2% tax on earnings for a cash outflow before the age of eight, they now bear a single puncture of 30 %. Above all, the rebates on retirement earnings after eight years – 4,600 euros for a single person and 9,200 euros for a couple – have been preserved. It is still possible to withdraw several thousand euros each year, without having to pay anything to the tax authorities.
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