the real top 5 of the best returns 2023

Life insurance returns for the year 2023 have had some nice surprises in store, particularly among the banks. These rates, as attractive as they are, are net of management fees and gross of fees on payments. Costs that eat into the profitability of the contract. So what are the best life insurance policies for 2023, net of all costs?

While life insurance returns have had some good surprises in store for 2023, the weight of payment fees can have a lasting impact on your savings. For this ranking, MoneyVox was interested in contracts serving best rates… after deduction of fees on payments.

These costs, if they exist within your life insurance contract, are deducted from each payment made to the fund in euros and/or the units of account (UC). Capped at 5% in the Insurance Code, they are used in particular to remunerate the distributor of the contract (the bank, the broker, etc.).

Life insurance costs: what are the costs to expect?

Also called entry fees, they often border on 3% on life insurance offered by banks or insurance networks. Often, these fees are negotiable but you still need to be aware of their existence to claim a discount.

THE online banks or web brokers charge little or nothing these entry fees. More and more mutual insurance companies are also lowering their prices or simply removing this line of fees from their contracts.

Life insurance returns: the good and the bad performers of 2023 rates

They are only collected once, upon entry, on the amount paid, and not every year like management fees? Certainly. But these costs are not negligible because they eat into the capital from the start, even before it generates interest.

To make this classification very concrete, let’s take a simple example: a little over a year ago, on December 31, 2022, you placed 1,000 euros in the euro fund of your life insurance contract. How much interest will this amount have earned you? as of December 31, 2023 ?

Here are the top 5 best life insurance contracts in 2023, taking into account the impact of fees on payments per 1,000 euros paid and before deduction of social security contributions.

1- Mutualist France

With the best rate served in 2023, and without any fees on payments, La France Mutualiste is on the first step of the podium. Its rate amounts to 3.70% net of management fees. By placing 1,000 euros on this contract, you have collected 37 euros interest for the year 2023 before deduction of social security contributions of 17.2%.

2- Character

Carac serves a rate at 3.30% net of management fees for its flagship contracts and provides for up to 3.50% entry fees on its contracts… with the exception of Carac Epargne Patrimoine which does not charge any. The saver who holds this contract and has invested 1,000 euros at the end of 2022 therefore obtains 33 euros interest at the end of 2023.

3- Spirica

Thanks to Spirica’s New Generation euro fund paid at 3.13%web contracts such as Linxea Spirit 2, MeilleurTaux Liberté Vie, Netlife 2 or Epargne Evolution 2 are placed in third position in this ranking. Even though it is a partially guaranteed fund, which means that a negative return is possible in the event of a bad year, Nouvelle Génération is the main fund of these contracts and therefore functions like a classic euro fund. Web brokers do not charge any fees on installments. The saver who has invested 1,000 euros will therefore generate 31.30 euros of capital gains over the year 2023.

Life insurance: is your low-cost contract one of the best?

4- BoursoBank

It was the online bank BoursoBank for its Bourso Vie life insurance contract which failed at the bottom of the podium. With a performance of 3.10% for its Euro Exclusif fund, accessible without any constraints on Bourso Vie, and without fees on payments, the online bank is among the best returns of the past year. The policyholder who has saved 1,000 euros over the entire year 2023 therefore benefits from 31 euros interest.

5- Macif

The Multivie multi-support contract offered a return of 2.70% in 2023. If the insurer does not find itself in the ranking of the 5 best life insurance policies for the past year, it still finds itself in fourth place in this top of the best returns after deduction of fees on payments. And for good reason, Macif no longer charges for Multi Vie. Thus, by placing 1,000 on his contract, the saver recovers 27 euros interest.

These contracts which fall out of the top 5 because of fees on installments

These contracts or insurers are at the top of the 2023 list of euro funds. Without counting the fees on payments, they have their place in the top 5. But their fees taken at entry cause them to plummet in the ranking if we judge them over a year. Obviously, if your money stays there for around ten years, the impact of the payment fees charged at the start will be erased little by little. The existence of fees on payments is only a selection criterion to keep in mind, not necessarily a prohibitive aspect. It all depends on your goal.

Madder

Despite a rate of 3.50% net of management fees in 2023 and because of entry fees charged at a maximum of 1% of the amount paid, the mutual company leaves this ranking and is actually placed in sixth place. For what ? By placing 1,000 euros on your Garance life insurance, the saver gains 34.65 euros of interest and not 35 euros (since once the fees on payments are deducted, only 990 euros out of 1,000 produce interest). But your fund in euros does not show 1,034.65 euros and well 1,024.65 eurosbecause of these 10 euros withdrawn from the start.

MACSF

In the 2023 rate ranking, MACSF is firmly in 5th place. But if you do not negotiate your entry fees, the mutual fund potentially takes up to 3% of your initial transfer. So taking into account entry fees for the first year of the contract, the MACSF is well out of the top 10! Despite remuneration for his multi-support RES contract in the amount of 3.10% for the year 2023, the saver only benefits from 30.07 euros of 2023 interest. However, once the 3% is deducted at entry, only 970 euros produces interest on the 1,000 euros paid by the saver. For almost zero gain after one year of investment.

Characteristics… for old contracts

Carac certainly serves a rate at 3.30% net of management fees for its flagship contracts (Carac Epargne Génération, Carac Epargne Protection, Carac Epargne Solidaire, Carac Profiléo) but the mutual provides up to 3.50% entry fees on the multi-support contract which has long been in gondola head, Profiléo. Unlike Carac Epargne Patrimoine, second in the ranking, the 1,000 euros placed on Profiléo would only have allowed you to generate 31.85 euros annual interest… and this does not compensate for the initial loss of 35 euros.

Compare the best life insurance offers at reduced costs

To simplify, our simulations do not take into account the impact of social contributions. But 17.2% of the 2023 annual interest would have to be subtracted from each contract to reflect reality. Which would not change the ranking but would further reduce capital at the start of 2024.