Good Value for Money, in its latest study, looked at unit-linked management fees according to the management profile (prudent, moderate or dynamic) chosen. Between 2021 and 2022, these costs have also decreased.
Within your life insurance contract, you have the option of investing your money in capital-guaranteed funds in euros and units of account, more risky investments but with potentially higher returns. Depending on your contract and your insurer, you have access to different asset classes. If you have the option of choosing them and managing the investments yourself, you can also entrust their management to your insurer.
In life insurance, profile management is done according to three profiles: cautious, modr and dynamic. Each profile allows you to invest a defined percentage of your savings in these famous investments with varying risks and returns. In his recently published study, Good Value For Money (GVFM) looked at the management fees inherent in each management profile.
Life insurance: the true cost of unit-linked management fees
The cautious profile
Ongoing management fees are lower for this profile. From exactly 9 cents according to GVFM: they went from 1.62% on average in 2021 1.52% this year for the heritage shares. The prudent profile implies that the majority of your savings are invested in bonds or bond or money market products and very little in equities. This involves minimizing risks and protecting your capital by limiting losses due to fluctuations in the stock market in particular.
The modr profile
The moderate or balanced profile returns invest your capital in equal shares (50/50) between stocks and bonds. This choice favors the balance between security and profitability. Current management fees are also down, going from 1.98 1.91% in one year.
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The dynamic profile
Risk taking is higher here. By choosing this profile when taking out your life insurance, you agree to invest your marbles mainly in equities, risky and potentially high-performance assets. In general, it is aimed at people wishing to invest over the long term, between 5 and 10 years. Current management fees are also down, by exactly 11 cents. They were getting up 2.30% in 2021, compared to 2.19% in 2022.
Management fees according to the different asset classes
Good Value for Money returned on current management fees according to the major asset classes: equities, bonds and real estate vehicles. Find here the summary of these costs:
| Asset class | Ongoing management fees Patrimonial shares | Ongoing management fees Units without retrocessions | Ongoing management fees Index supports |
|---|---|---|---|
| French Equities | 2.17% | 1.21% | 0.37% |
| European Equities | 2% | 1.08% | 0.34% |
| International Equities | 1.97% | 1.02% | 0.31% |
| North America Equities | 1.90% | 0.98% | 0.29% |
| Asia Pacific Equities | 1.94% | 1.03% | 0.44% |
| Emerging Countries Equities | 2.09% | 1.16% | 0.43% |
| BRICS actions (Brazil, Russia, India, China, South Africa) | 2.08% | 1.28% | 0.66% |
| Sector Actions | 2.03% | 1.12% | 0.35% |
| European Medium-Long Term Bonds | 1.07% | 0.56% | 0.16% |
| International Bonds | 1.27% | 0.59% | 0.21% |
| Emerging Country Bonds | 1.59% | 0.88% | 0.53% |
| High Yield Bonds | 1.29% | 0.66% | 0.42% |
| Real estate (excluding OPCI, SCI / SC / SCP and SCPI) | 1.85% | 0.95% | 0.45% |
| OPCI | 2.28% | X | X |
You can find all these detailed costs directly in the pre-contractual information life insurance contracts. You will find: the name of the management company, the gross and net performance of the asset for the previous year, the management fees of the asset, the total fees, the final performance and the retrocessions of commissions of the product .
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