Despite the lower yield, this envelope remains the investment favourite of the French.
despite the battering tax and the erosion rate, the life insurance continues to appeal. With almost 1700 billion euros placed by more than 15 million to French, she retains the title of investment a favorite of the French.
of Course, the returns of the funds in euros without risk decreases. The year 2017 is expected to turn around 1.5%, but with variations ranging easily from a single to a double, or even more, according to the insurance companies and the contracts. Next to taxation, since September 27, 2017, the payments in excess of 150000 euros in life insurance, are penalized by the new levy one-time lump sum (PFU) of 30% on the gains withdrawn.
The French still support this investment secure a strong position. Taxation remains limited to 17.2 percent in social security taxes on earnings withdrawn after eight years for most contracts, and the capital transmitted in the case of death will remain exempt from inheritance tax until 152500 euros per beneficiary.Your support is essential. Subscribe for $ 1 support Us
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The proportion of holders of life insurance has continued to increase, from slightly more than one-third of the households in the beginning of the years 2000 to over 44% in 2015, according to the latest survey by Insee on the heritage of the French. They have even made 131,5 billion euros of new payments in life insurance in the past year. It is certainly a little less in 2016 (133,9 billion) and 2015 (135,5 billion), but no other investment that does not attract as much money. Especially, the erosion rate and the good performance of the Stock market are pushing investors to diversify their contracts beyond the traditional euro funds without risk.
The average yields of around 1.5% in 2017
Even if his performance varies from one contract to another, the funds in euros was of superior quality to investors: it is safe (it can't be lower), cost effective (it reports each year of interest, which in turn produce) and available (you can withdraw the money at any time). These strengths explain why the French still retain more than 80% of their savings in life insurance funds in euros, even if there is some décollecte. Of course, they bring in less than before, and sometimes not enough to preserve the purchasing power, but even more than all the other risk-free assets.
the average of The yields expected to be around 1.5% for 2017. A figure that hides important discrepancies: best fund in euro still reported between 2% and 2.5%, or even up to 3%, while the least successful have generated barely 1% yield or less.
Eleven insurance-life in eur yet powerful
"The best rates offered on funds in euros the classics from associations of investors or mutual funds as Asac-Fapes, with 2,58% on his contract Retirement Savings 2 More, the mutual MIF with a 2.50% on its savings Account free future mpt, or Afer, with a rate of 2.40%," said Cyrille Chartier-Kastler, president of the company Facts & Figures. In this category, one also finds the contract Retirement mutual-fighter (RMC) of France mutualiste (2,90%), the contracts of the association Gaipare (2,65%) or Retirement health savings (RES), the contract of the MACSF (2,40%).
One of the charms of the life insurance in euros is that it does not reflect strictly the evolution of financial markets. Its performance depends on the assets possessed by the insurance companies, in the end dependent on the capital markets, but insurers may reserve a portion of the gains and income from asset side to redistribute them later, and thus to ensure the security and availability of life insurance in the face of the vagaries of the stock market.
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In 2017, the rise in rates and the good performance of the markets and have allowed us to accumulate significant reserves for participation in profits, or PPB. "BNP Paribas Cardif has with 775 million additional euros its PPB, which now stands at 4 billion euros, which is 4,94% performance reserve" continues Cyrille Chartier-Kastler. These reserves represent 5% of the savings on to MMA and 6% at the GMF, including the euro funds have all reported to 2.10% in 2017, the insurer of the Covéa group has the good idea to guarantee the same rate to all its customers.
"If the good news are usually announced in January with press releases flattering, the less good rate are often known only to the receipt of the annual statements of the situation," says Cyrille Chartier-Kastler. In most of the banking networks, as The postal Bank or the Crédit mutuel Nord Europe, the rates of many of the contracts down to 1% in 2016 could be even lower by 2017.
contract associations more cost-effective than those of banking networks
Among the students is poor, the banking networks, which control 60% of the market, generally offering contracts less profitable with the highest fees. To get the best returns, savers are turning as a priority to the contracts of associations such as those of the Gaipare, of the Asac-Fapes, or Afer, mutual societies, such as France mutualiste or MACSF, and insurers indépending as The Curator. As for clients the most dynamic, they often turn to contracts distributed by brokers advisors wealth management, or on the Internet, which allows access to tens or hundreds of media different financial.
"Behind the life insurance contracts traditional contracts expressed in units of account are a cardboard box," says Eric Baron, ceo of SwissLife assurance et patrimoine. From September 2016, the French will withdraw overall money of the fund in euros, to pay more on the other supports of life insurance, in particular stock market funds and diversified.
These can be used to invest in multiple financial instruments, called units of account in the jargon of the insurance, or CPU. This acronym covers all investments outside of the fund, in euros, whether the investment fund equity or diversified real estate investment, for example in the REIT, or even investment formula and promise so-called "structured products".
profitability of the two speeds
The erosion of the performance of the fund in euro pushes investors to diversify their life insurance policies in units of account (UA), and more profitable when the Stock market goes up, but exposed to risk of loss in the event of a crash.
In 2017, attracted by the dynamism of the financial markets and disappointed by the profitability of risk-free assets, the French have placed 28% of their new payments in life insurance on these media, a level unknown since the end of the 1990s, when these CUS had cornered up to 43% of the payments.
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"there is a real change that is expected to increase as investors realize that the euro funds are not necessarily the future," says Eric Baron. If no investment combines the three advantages of a good funds in euros (safety, profitability, availability), underwriters life insurance appreciate in particular the fund diversified flexible conservative, which impress with their respectable performances for a risk-taking limited. In 2017, they earned, on average, between 3% and 3.7%, while during the last bad year for the stock markets, in 2011, while the CAC 40 index had plunged to 17%, these flexible funds cautious had lost around 4 to 4.7%.
spoilt for choice is a real dilemma for investors
"In 2017, our clients have completed over half of their new investments in life insurance on investments in units of account, and on this part, half the Internet. This choice is popular has been invested in the patrimonial funds of this type", explains Olivier Samain, director of Axa Thema. The affluent clients of these contracts are more likely to diversify their life insurance because they can afford to take more risks, but also because of real advisors are there to guide them through the maze of contracts. Because the embarrassment of the choice is a real dilemma for savers lambda, and a challenge for professionals.
Some contracts provide access to hundreds of different funds, including ranges of various real estate investment trusts (REITS), especially among those brokers on investors the most experienced, able to select funds according to their risk criteria. But for others, it is already difficult to understand the nuances between the categories of funds, stocks or bonds, euro zone or emerging countries, large-value or small-cap stocks.
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For all those customers who wish to diversify their life insurance without knowing which investments to choose, insurers are increasingly offering turnkey solutions, such as the management controlled via the management mandates entrusted to professional markets. Once reserved for affluent clients, this service became available from amounts that are very modest, at least with the contracts on the Internet. The preferred investment of the French has not finished reinventing itself.