There is no shortage of different types of contracts offered by insurers, banks or mutual insurance companies. Therefore, finding the rare pearl will not be a piece of cake.
And yet, the choice of a first life insurance contract should not be taken lightly. Here are a few steps to follow that will allow a subscriber to quickly find a contract that is adapted to his profile and to his financial objectives.
First life insurance policy
Find a reliable insurer
It is possible to find a good life insurance contrat with a bank, an insurance group, a mutual insurance company, a broker or a wealth management consultant (CGP). The subscriber is free to choose the insurer he/she likes. On the other hand, it is necessary to think carefully before subscribing to a life insurance contract..
Counting the number of trophies or medals the institution or insurer has won is not necessarily the best solution. Ideally, you should look for a reputable organization that has been managing life insurance policies 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 do not age well and their remunerations leave something to be desired, especially after the appearance of new products on the market.
It would be wiser to open a life insurance policy with traditional insurers so as not to raise false hopes.
Life insurance management fees can change the game
It is always important to negotiate management fees before subscribing to a life insurance contract. Otherwise, they can have a significant impact on the return on investment.
These fees are deducted annually by the insurers according to the capital invested (0.5 to 1% of the outstanding amounts). Apart from management fees, there are also the fees on payments which are one of the big disadvantages of a life insurance. These can be as high as 5% of contributions..
This is the reason why it is preferable to take out a (new generation) contract online, because fees on payments do not exist for this type of life insurance contract.
Arbitration fees apply as soon as the beneficiary changes investment media or units of account. The insured must also pay arbitration fees when he/she decides to sell a fund (euro or unit-linked) 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 be costly to subscribers because of the management fees, arbitration fees and installment fees of each contract subscribed.
Instead of that, the investor can look at the management options of the contract of his choice. Some insurers offer free arbitration options, while others charge for them (depending on the assets entrusted, subject to a flat-rate deduction).
It will be possible to boost the capital gains of the euro fund by automatically transferring them on unit-linked products (UC). There is also a management option called "Stop Loss" allowing the investor to define the maximum loss desired on a unit trust.
The possibility of securing capital gains in one or more secure investment vehicles (money market fund, euro fund) is also possible. The choice will depend on the personal objectives and needs of the insuredand of course, the management options offered by the insurer.
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