Alexa Seleno

Life insurance, long-term savings for an unbeatable price

Juil 10, 2023
Life insurance, long-term savings for an unbeatable price

Understand the life insurance contract in all its details

A life insurance contract is an agreement by which an insurer undertakes with the insured, in return for the payment of premiums, to pay a capital or an annuity in the event of life or in the event of death of a designated person, (usually the insured) for the benefit of the member or a third party (i.e. the beneficiary). Life insurance is a way to grow financial wealth. It can also be a means of building up new assets, via free or pre-established payments. You should know that life insurance enjoys an advantageous tax framework, both in terms of financial investment and inheritance rights.

The various fees required by life insurance

During the payment, the insured must choose which type of fund he will deposit his savings in, either the guaranteed fund or the Units of Accounts. For its part, the insurer will charge fees. These are deposit fees, also known as entry fees. These costs can be between 0%, for the best life insurance, and 5%, for the most expensive. In practice, payout fees reduce the amount of savings actually invested in life insurance. Also, the sums invested as life insurance will suffer management fees each year. These costs remunerate the insurer for its savings management service. They can be between 0.4% and 1%. Such management fees reduce savings on life insurance.

A cheaper life insurance contract via an insurance comparator

Life insurance, as a tool for saving and transmitting capital, is quite simply the preferred investment of the French. As it offers different types of products and contracts, while being a complex contract, finding the cheapest contract inexorably goes through an insurance comparator. Such a tool makes it possible to compare the life insurance contracts of several insurance companies for free. To do this, you must complete a life insurance questionnaire, which will only take 2 minutes. Also, take out a contract ofcheaper life insurance via the Internet entails significantly lower costs. On the other hand, the subscription of a life insurance contract with an advisor will involve the payment of management fees, non-existent for Internet contracts.

Life insurance on the Internet or how to benefit from quality advice

On the Internet, the subscription to a life insurance contract is regulated by the Insurance Code. Real experts design and carry out a real analysis and consultation of the life insurance file. Also, the life insurance contracts offered on the Internet offer and offer the same guarantees as the contracts signed in an agency. The profitability of such contracts initialed on the Web comes mainly from the non-existent entry fees. Also, the life insurance contracts on the Net show yields that can reach 4.1% if for the traditional contracts, they report in the 3.2 to 3.4%. Obviously, the life insurance contract on the Internet is both cheaper, to be more profitable. And to make it cheaper, the future insured must compare the multiple existing offers on the market.

The magazine-insurance team of editors at your service! We look at all possible and imaginable information on insurance in order to help you sort it out. We strive to offer you quality articles to help you better understand the issues of this or that insurance.

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