Contrary to what many people think, life insurance is not only valid in the event of death. In fact, it is an essential element to guarantee the quality of life of the family in the event of unforeseen circumstances. This is an investment in a savings product, which provides an excellent return. In this sense, you have to know how to choose an insurance contract that meets your needs and objectives.
Life insurance: the insurer plays a very important role
Life insurance is designed to deal with an unforeseen death, and helps protect dependents from financial difficulties that may arise after the death of the insured. With this in mind, it is important to know the decisive criteria for finding the best life insurance to choose.
The type of media
The wisest option for having savings is to invest in a mono investment or a fund in euros. The contract is managed by the insurer and the capital invested is always guaranteed. Thus, it is necessary to think on the long term in order to evaluate the return and the performance of its placement. A rate of return of 2% or more is always interesting since it exceeds that of the booklet A.
Care must also be taken in choosing the right insurer, who must be able to generate profits, even in times of crisis. The insured can opt for a multi-support life insurance contract or a unit-linked contract. It is a very advantageous insurance contract, because the gains are more interesting than with a fund in euros, although the risks are high.
The insured must manage part of his savings. To do this, it must benefit from a wide variety of units of account (real estate funds, stocks, bonds, mutual funds, etc.). This diversity increases the opportunities for earnings. The choice of the insurer is very important, since he will have to come to the aid of the insured if necessary and bring his experience.
Management methods
Life insurance gives access to several management options. It is up to the insured to choose the method that suits him. In general, he will have the choice between three types of management:
- Managed management: the insurer will take care of the follow-up;
- Free management: the insured takes charge of his insurance contract;
- Profiled management: located between free management and controlled management, which means that the insured takes care of the management of his funds and will be assisted by his insurer.
Management methods take different forms depending on the insurance company. For this reason, you must opt for life insurance that offers the management method best suited to your profile. Also, the insurance company must be able to offer its client the possibility of switching to another management option when he wishes.
life insurance costs
Additional costs imply less profit. Therefore, three types of costs should be compared: management fees, Payment and Arbitration. Payment fees are negotiable and are deducted from each payment, although some insurers do not offer them.
The management fees are obviously much higher when it comes to a multi-support contract. It is important that the installment fee should not exceed 3.5% and the annual management fee should not exceed 1%. In this regard, good life insurance involves fewer costs. In order to find the best contract, it is recommended to find an offer with 0 payment fees and not to exceed 0.6% in management fees.
