Many people think of life insurance as a way to provide for their loved ones in the event of their death. However, this insurance is beneficial for the insured himself being a kind of savings, which can help him meet some of his needs, especially in the event of retirement. Life insurance can provide coverage that can serve as a very wise financial investment, as it tends to accumulate cash value over time.
What is life insurance and what are its benefits?
Life insurance is a contract concluded with an insurance company. In exchange for the payment of the premiums, the insurance company pays a lump sum to the beneficiaries in the event of death (death capital) or to the insured himself if necessary. Typically, life insurance is chosen based on the owner’s needs and goals. The insured chooses the way that suits him. It all depends on the level of risk he wants to run.
A safe financial investment consists of investing your money in euro funds, considered as secure and guaranteed funds. THE Allianz life insurance investment provides guaranteed capital with an attractive return. However, this return can lose value over the years, hence the appearance of new funds in euros with a fairly high performance, while preserving the capital guarantee, which allows an optimization of the return.
An alternative is to invest in “units of account” which are none other than bond, equity or safe haven funds. In this type of financial investment, the capital is not guaranteed, but the return is much higher. The insured makes one of the investments according to the level of risk that suits him. However, low risk means minimal return. It is therefore preferable to opt for a risky investment in order to achieve a higher return.
Life insurance is a very flexible financial investment!
By taking out life insurance, the insured can make scheduled or free payments. He thus has the right to manage his contract in the way that suits him, since the investment amounts are not limited. Moreover, by investing in life insurance, the capital is not blocked. The insured can afford to withdraw part of his savings in the event of an unforeseen event or need, without terminating his contract.
Life insurance can be useful to cover certain unforeseen charges in difficult situations or to make a financial investment in other projects. Life insurance allows the insured to build capital over the long term. In this regard, investment in life insurance allows the insured to build up capital, thanks to the money invested in addition to the net interest resulting from his financial investment.
Life insurance supplements the income of the insured
To do this, simply proceed to request the life annuity to ensure his income, especially in the event of retirement or at an advanced age. In addition, life insurance makes it possible to optimize the transmission of assets.
It is an investment that offers a kind of protection for the loved ones of the insured. This guarantees them a capital, which they can collect after the death of the insured. Life insurance is a very attractive financial investment, because the insured is not required to file a tax return unless he makes partial withdrawals before the end of the contract.