Life insurance is still the most used means of saving in France today. Its outstanding amount had reached the record amount of 1,923 billion euros at the end of 2023, according to estimates from France Assureurs. It must be said that life insurance offers substantial advantages to those who use it, whether it is inheritance or investment life insurance.
What is the point of life insurance?
Life insurance is a savings contract which aims to build up capital to be appreciated, before passing it on to your loved ones upon your death, but not only that. It can also be used as an investment to finance medium or long-term projects, particularly during your retirement. There are three types of contracts: insurance in the event of death, which serves as a guarantee for the first scenario, insurance in the event of life, which serves more as a savings plan, and mixed contracts mixing elements of the first two. Flexible, available in the event of an unforeseen event, encouraging investment and benefiting from tax facilities, life insurance also allows you to benefit from guaranteed capital which reassures policyholders.
What are the disadvantages of life insurance?
For all the many qualities it offers, life insurance does have disadvantages that must be kept in mind before embarking on any investment. First of all, it is accompanied by management fees which can be higher than for other savings solutions: entry fees on the first deposit, payment fees of up to 5%, or even registration fees. arbitration or annual management depending on your insurer. Then, its potential return is not always completely guaranteed, especially if you opt for a savings solution not in euros, but in units of account, which are more dependent on market variations. Finally, if the capital of your life insurance remains accessible, it is not always immediately available: to redeem part of your savings, you will have to request the agreement of your insurer, who has a period of two months to deposit the required amount into your account.
Source :
Life insurance records record outstandings at the end of 2023 – France Assureurs