Life insurance is an advantageous legal and tax package, but also an increasingly sophisticated financial management tool. To make the best use of it, you still need to know the levers at its disposal, and they are legion.
Scheduled payments
Accessible in all recent contracts at no additional cost, this option allows you to set up regular and automatic payments on your contract. This is ideal for saving regularly without having to think about it.
The option is flexible: you adjust the amount and frequency of your payments. Depending on the contracts, you can generally start paying a few dozen euros per month. If your saving capacity improves, simply increase the amount. This option can also be suspended or stopped at any time.
Very flexible, it allows you to build up capital over time in a painless way. And if you invest part of your savings in units of account, the risky supports of life insurance, these scheduled payments will also allow you to invest in the markets over time, since you acquire a portion of units of account with each new payment, and thus smooth the risk.
Progressive investment
If you have a large sum to invest – for example after having received a bonus –, opt instead for the progressive investment option. With the latter, you deposit your entire payment into the fund in euros, the non-risky support of life insurance, and you let the insurer carry out automatic arbitrations to gradually allocate all or part of this amount to units of account.
It’s up to you of course to select them. The operation takes place over the duration of your choice, according to the terms provided in the contract – from a few months to several years. This is particularly suitable if you plan to bet on equity assets. This will smooth out your entry point into the stock market, saving you from worrying about whether it is expensive or cheap. Please note, this option sometimes requires payment.
Multi-pocket management
Another option can be very effective: “two-pocket” or “multi-pocket” management. Still confidential, it is mainly found in property contracts and the Internet. This is interesting for savers who want to rest for part of their savings on management under mandate. That is to say those who wish to entrust the management of their savings to a professional who will carry out the investments and arbitrages, while directly managing another part of their contract themselves.
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