There is no shortage of different types of contracts offered by insurers, banks and mutuals. Therefore, finding the gem will not be a piece of cake.
And yet the choice of a first life insurance contract should not be taken lightly . Here are some steps to follow that will allow a subscriber to quickly find a contract suited to their profile and their wealth objective.
First Life Insurance.
Find A Reliable Insurer.
It is possible to find a good life insurance contract with a bank, an insurance group, a mutual insurance company, a broker or a wealth management advisor (CGP). The subscriber is free to choose the insurer he likes. On the other hand, you have to think carefully before taking out a life insurance policy.
Counting the number of trophies or medals from the establishment or the insurer is not necessarily the best solution. The ideal would be to turn to a renowned organization that has managed life insurance contracts for several years.
In any case, the new ranges of bank life insurance contracts are always attractive with above-average rates of return. But the old contracts of the banks are aging badly and their remuneration leaves something to be desired especially after the appearance of the new products on the market.
It would be wiser to open a life insurance contract with traditional insurers so as not to harbor false hopes.
Life Insurance Management Fees Can Make A Difference.
It is always important to negotiate the management fees before taking out a life insurance policy. Otherwise, they can have a significant impact on investment returns.
These costs are deducted annually by insurers according to the capital invested (0.5 to 1% of outstandings). Aside from management fees, there are also payment charges which are one of the big disadvantages of life insurance. These can range up to 5% of contributions.
This is also the reason why it is preferable to take out a contract (new generation) online because payment fees do not exist for this type of life insurance contract.
Arbitration fees, on the other hand, apply as soon as the beneficiary changes investment vehicles or account units. The insured must also pay arbitration fees when he decides to sell a fund (euro or UC) to buy another.
Check The Management Options Offered By The Insurer.
In general, it is possible to open several life insurance contracts at the same time. However, this decision can cost subscribers dearly because of the management fees, arbitration fees and payment fees for each contract taken out.
Instead, the saver can look into the contract management options of their choice. Some insurers offer free arbitration options while others bill them (depending on the amounts entrusted, subject to a fixed charge).
It will be possible to boost the capital gains of the fund in euros by automatically transferring them to the units of account (UC) supports. There is also the management option called “Stop Loss” allowing the saver to define the maximum loss desired on a UC.
The possibility of securing capital gains towards one or more secure investment vehicles (monetary fund, euro fund) will also be possible. The choice will depend on the personal objectives and needs of the insured, and of course, the management options offered by the insurer.