Economic crisis: what is its impact on life insurance?
Does the economic crisis related to the Pandemic of Covid-19 have a lot of consequences for life insurance investments? How did the holders of this investment react? Is it worth it still? One point in this period of uncertainties.
While the economic crisis is growing globally, and the future is at least uncertain, we can fear for its savings. Like many others, life insurance depends on the economic situation, but in part only. Because, as we know, the preferred placement of the French, composed of two parts, a part in the bottom in euros, and a part in unit of account, works in the long run.
Sanitary crisis: a historic decollection movement
The at the bottom of the euro, mainly made of obligations, was little impact by the economic crisis related to COVID-19. Those who went on the Guaranteed Euro Fund have escaped.
According to Kane Pepi, investment expert and owner of Buy Shares,
Parts in units, on the other hand, is much more dependent on the global economy, the stock market, and the real estate market. Indeed, it is largely composed of financial assets, with the image of business actions.
In the end, the health crisis pushed a lot of savers to react immediately. In March and April, in full period of confinement and uncertainties, the greatest decollection movement has been attended since 2011. In April, withdrawals on life insurance contracts exceeded the level of payments, according to the by the French Federation of Insurance (FFA). Refunds made by insurance companies were 8.5 billion euros, while payments were only 6.4 billion euros. FFA indicates that confinement has restricted commercial activity and number of operations.
But since life insurance is a long-term savings placement, holders know that global scholarships eventually start. In the end, its variety ensures a certain security to the investor, especially since most of the time, it has more funds in euros. Wealth management advisers are always available to educate their clients, including primary investors, on the management of their life insurance.
Life insurance: what are the supports
Life insurance in Monosupport only proposes that the fund in euros, renowned for safe and little risky, since the value of the capital can not fall. It is the insurance company that focuses on financial risk. The minimum return is known in advance, as most euro funds set a guaranteed minimum rate (TMG) that sets annual performance. This void risk of capital loss reassures investors, especially newcomers. It is estimated that a minimum of 8 years is preferable for life insurance to be profitable. Note that few contracts today make it possible to place all of its capital on the fund in euros.
Multisault life insurance contracts are composed of "account units" (UA). They are made up of different funds, themselves invested in the financial and real estate markets. They are more profitable than previous, but also more risky. The investor has a wide range of financial assets where to place their money, among settlement-in-securities investment bodies (UCITS), real estate investment bodies (OPCI), real estate investment companies (SCPI), Investment companies with variable capital (SICAV), mutual funds (FCP).
As it always proposes a support invested in a fund in euros, this guarantees a minimum of funds.
Why take life insurance
Life insurance offers a favorable tax system for the death of the insured. The capital paid to the designated beneficiary who is not part of his succession, he is exempt from all rights of succession. Another advantage is its great freedom to pay savings as it is, and remove it quickly. Investors also appreciate it for the different levels of risk it proposes.
إرسال تعليق