Among all the insurances and complementary health insurances existing on the market, many are those who opt for a subscription to a life insurance. Before expanding on the reasons justifying this choice, it is essential to explain what this type of savings investment is in a little more detail. Focus on privileged investment in France at present.
What is life insurance?
Life insurance is a savings contract to which the interested party subscribes in order to make a financial investment. It is an investment that allows the insured to grow his money for, at your choice, a fixed period or for a lifetime.
How it works ?
When subscribing to a life insurance contract, the insured will have to choose between two types of contracts.
- A risk-free application: it consists of an investment of funds in euros.
- A more risky request: it is a multi-support investment in the form of units of account placed on the stock market, therefore the shares placed will be subject to variations in it.
It should be noted that the initial amount (capital) invested by the insured can be minimal, of the order of a few tens of euros, or much more substantial. The member will be free to fund his account, or not, afterwards.
It should be noted that the money entrusted to the insurance company will be invested in such a way as to produce income that will be added to the base amount. The member will have the possibility of recovering the capital invested and the capital gains at any time.
In the event of death, the accumulated savings will be paid to the beneficiary(ies) that the member has previously designated (s) independently of his estate.
Why sign such a contract?
It goes without saying that subscribing to such a savings contract can prove to be very advantageous for the subscriber on several levels. It is a profitable investment which will be used, in the event of death, to subsidize the needs of the member’s family or to carry out a life project requiring substantial capital.
In addition to the diversity of investment methods, life insurance secures the money invested by guaranteeing the capital, except certain contracts. The latter is notably endowed with advantageous taxation, whether on interest received or on inheritance tax, life insurance is one of the least taxed investments in France.
This form of savings is also distinguished by the availability of funds and the freedom of payments. The insured can dispose of his money as he pleases, but pay attention to fees and taxation because it is a long-term investment. Find more advice on financial investment and increase your chances of profit in this article.
