Question to an expert
What are the alternatives to euro funds in life insurance?
Life insurance funds in euros may seem irreplaceable for savers seeking yield and security. However, its constituent triptych – an attractive return, a capital guarantee and the permanent availability of funds – is an economic incongruity. This has now been brought to light, as low rates persist and inflation gets out of bed. Most euro-denominated funds offered returns below 2% in 2021 and a large proportion of them are below 1%.
To replace the fund in euros, the investor must make a cross on one of the assets that made its charm. Certain real estate supports offered within the framework of life insurance have been offering a very respectable performance of around 4% for several years. The saver must nevertheless give up the capital guarantee and, once the first six months have passed and the entry fees have been amortized, they can, if they need cash, recover their funds relatively quickly.
The so-called “euro-croissance” funds which promise to combine the dynamism of the financial markets and security do not offer a permanent guarantee of capital either. It can, for example, be 80% after eight years. They nevertheless constitute a solution to funds in euros, provided that you agree to keep your savings for a certain period of time. In 2021, the best products generated a performance close to 5%, driven in particular by their diversified investments such as real estate and unlisted equities.
Vincent Cudkowicz, CEO of Bienprévoir.fr and Primaliance