Life insurance is one of the preferred investments of the French, but what about the high-end life insurance contract ? In any case, you have to pay several hundred thousand euros to open such a contract.In other words, it is particularly aimed at investors with very high incomes and who do not know how to manage their wealth. A high-end life insurance contract has several significant advantages.
Who Can Open A High-end Life Insurance Contract?
In general, many private banks offer high-end life insurance contracts to their customers (the most prestigious). This strategy is not new since it allows credit institutions to attract the attention of prospects and retain them over time.
The saver must however make a payment of 50,000 to 300,000 € to open a high-end life insurance contract without forgetting the excessive fees offered by the lending organizations.
Some people find this a bit of an exaggeration, others think it is suited to their investor profiles and personal goals. In all cases, it is advisable to contact a wealth management advisor (CGP) before taking the plunge.
The Advantages Of A High-end Life Insurance Policy.
Different Investment Vehicles.
Access to different types of financial assets is surely one of the big advantages of a high-end life insurance policy. In other words, this savings device makes it possible to invest in a wide choice of investment vehicles (funds in euros, units of account, securities, SCPI and OPCI shares, stocks, obligations foncières).
It is the best long-term savings solution on the market. Anyway, it will take a nice amount of money on the product to be able to enjoy all the benefits it offers. Most credit institutions also offer other services to their customers if the minimum outstanding amount of their contracts exceeds € 10 million.
Tailor-made Contract Management.
The holder of a high-end contract can delegate the management of his contract (invested capital) to a professional. To do this, savers can turn to management under mandate in the hope of pooling the financial risk of their investments.
This diversification of assets makes it possible to secure the savings placed on the contract over the long term. In other words, the subscriber who has chosen to increase his management mandates will no longer have to worry about the management of his high-end life insurance contract , because a professional takes care everything in its place.
In fact, it is he who takes care of the steps with the insurer (establishment, insurance company) and the establishment of the best investment strategy allowing the saver to reach his objective. In any case, the tailor-made management of a high-end life insurance contract always comes with additional costs which are among the big disadvantages of this type of contracts.
Management fees can be up to 5% per year for the most recent contracts. These charges can be increased to 0.2 to 2.5% for the most popular management mandates, all depending on the amount of capital invested.