Published on : 21 April 20204 min reading time
Life insurance is a contract in which the insurer undertakes to pay an annuity or a capital sum to the insured. In return, the latter should pay premiums regularly or simultaneously into long-term savings. Life insurance is one of the best investments compared to other types.
Life insurance: a preferred investment for savers
It is often thought that savings are tied up in life insurance. This is no longer the case, as life insurance can be available at any time. It is quite possible to request a partial or total surrender of a life insurance policy if you need specific liquidity. This insurance is partial if you need to recover part of the value of the life insurance policy. This money can be used partially. It is also feasible to recover the entire amount saved in the life insurance, but on condition that you do not benefit from the tax precedence of the insurance contract. In reality, income can be received in the event of partial surrenders, whether scheduled or not.
In addition, the insured is free to pay one-off or regular premiums at his or her convenience. If you are in financial difficulty and need money, you can withdraw part of your life insurance savings. All you have to do is contact the insurer of the situation and demand a partial advancement. On the one hand, life insurance is a secure savings. It can be paid out on a regular basis, at will or by payment module. It is quite possible to pay into a life insurance policy every time you receive your salary or every time you get a good deal. The payment is completely free of constraints. Savers can pay any amount into their life insurance at any time. On the other hand, these savings are valued according to the contract established with the insurance company. The value of life insurance is often exponential. It exceeds any kind of tax value for different types of investments. It makes it possible to save flexible and flexible savings.
Life insurance: suitable for investors willing to take risks
From a profitability point of view, life insurance can be perfectly adapted to investors. Some units of account are riskier than others. However, real estate investments generally yield good returns with a measured risk ratio. Life insurance, on the other hand, is not concerned with risk rates. Compared to bank, stock exchange or real estate investments, life insurance does not experience any regression or fall in financial value. Stock market investments can stagnate. This can decrease in value depending on the amount of the investment, because stocks decrease in value. This is also the case with real estate investments. The latter is considered as a financial support that deals with the purchase or rehabilitation of a premises. It could be that the value of the real estate that one has just acquired decreases in value because of a disaster, massive immigration… In this situation, one loses the value of one’s investment. However, the value of a life insurance investment never declines under any circumstances. The insurance company guarantees the continuity of the tax history of the investment.
Life insurance: a transfer of insured capital
When you take out life insurance, you are required to name one or more heirs. They can be a natural or legal person, including an individual, a group of individuals or a charitable association. Almost any person can be named. It can be his or her spouse, friend, nephew, a humanitarian organization, a minor child or a person with a disability. Life insurance is similar to an inheritance and succession process. The only difference is that instead of the notary, the insurance company ensures the division of the estate after the time of death. In the latter, the gain from the life insurance is attributed to the heir designated by the will or the designation document. If the life insurance is in the non-succession category, it can be allocated with the related premiums to the insured before his or her 70th birthday. The tax rate and the individual deduction are very advantageous in this case. For example, this makes it possible to financially support the family, which will benefit from a reasonable tax deduction and taxation.
Life insurance: a better financial investment
Life insurance is a product with a good rate of return. It is one of the best financial investments. Compared to a context of falling interest rates on other investments, life insurance remains a more attractive investment than other secure products such as Livret A or Livret de développement durable.
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