How do you choose the best life insurance policy for your needs?

Choose the best life insurance policy Life insurance is still one of the French people’s preferred financial investments. Most life tasks may be realised with this approach of saving. Life insurance, which benefits from a favourable tax framework, is a tool for planning a medium or long-term project such as one’s children’s schooling, one’s retirement, one’s inheritance, or simply to build up wealth.

To remember

1. Build up capital at your own pace

2. Choose the investment supports of the life insurance contract adapted to your projects

3. How to get the most out of life insurance

Build up capital at your own pace

Choose the best life insurance policy To begin with, life insurance helps you to save and grow wealth under a favourable tax structure. It is a medium/long-term savings option for one or more initiatives such as paying children’s education, planning for retirement, and so on.

It is also a method of transferring capital to loved ones by naming one or more persons (the “beneficiaries”) who will receive the money established in the case of death.

The investment supports of the life insurance contract adapted to its projects

The member/subscriber makes an initial payment, followed by free or regular instalments based on their savings potential. As a result, the saver progressively accumulates cash at his or her own speed.

Children’s studies, retirement, succession, how to prepare them?

With the assistance of his Advisor, the member/subscriber selects the distribution that best meets his assets and financial status, goals, risk sensitivity, investment horizon, and financial abilities. the best choice between security support in euros, which guarantees the net capital invested, and security support in units of account invested in equities, bond, or real estate markets, which may provide a larger potential return in exchange for a risk of capital loss.

When a member/subscriber wants to have a capital or ensure additional income, he can recover his accumulated savings in the form of capital (total withdrawal) or partial one-time or scheduled withdrawals, or in the form of life annuity, that is, a sum regularly paid until the end of the insured’s life in exchange for the alienation of the capital; that is, the insured no longer has the power to dispose of or pass on his capital. It is also feasible to combine a life annuity with one-time or planned partial withdrawals of the accumulated money.

A feature of life insurance is that, in the case of the insured’s death, the amount of the capital formed does not systematically come into the estate’s assets. In this method, it is possible to transfer a portion of one’s assets to the persons of one’s choosing while avoiding inheritance tax and within specific restrictions. It is best to include a “beneficiary clause” tailored to your specific scenario. Your Advisor will be able to help you draught it.

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The keys to optimizing life insurance contracts

Another key benefit of life insurance contracts is the favourable tax environment. The interest and capital gains generated by the member/subscriber are not taxed as long as the member/subscriber allows his amassed wealth to develop (excluding social security contributions).

Nonetheless, alternative formulae exist to address a requirement for liquidity in the case of an unanticipated incident or at the conclusion of a contract given under particular conditions:

Withdrawals (“partial redemptions” or “total redemptions”): Depending on the age of the contract and the payment dates, the member/subscriber may choose to include his winnings into his income tax, or select for direct debit flat-rate discharge and/or the single flat-rate debit.

An advance is a loan made by insurance to enable its funds to grow. It does not result in a diminution of the contract’s capital and is not equivalent to a partial redemption (therefore does not give rise to any taxation). However, since it has an interest rate, it is highly advised to return it before the original period of three years.

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