Preparing for retirement with life insurance


Article sponsored by CORUM L’Épargne

What is life insurance?

Life insurance is a long-term savings contract with attractive taxation. Its first advantage is that it allows you to develop your capital gradually, at your own pace, throughout your working life. It is a savings product that can be adapted to everyone’s projects and objectives, and whose savings can be invested in different types of products.

Life insurance gives great freedom to the saver who can increase his capital (and thus generate more potential capital gains) or withdraw money when he sees fit. If it was taken out for a fixed term, the contract ends on a specific date. The total withdrawal of savings also puts an end to life insurance. If the subscriber dies, the value of the contract is then paid to the designated persons, with an interesting tax deduction.

Life insurance therefore offers savers the opportunity to invest their capital to build up a contribution for the purchase of property or to finance the studies of their children, to prepare for retirement, to transmit their assets, etc.

The benefits of life insurance for retirement

More and more French people are concerned by the uncertainties linked to their future retirement. Among the solutions available to everyone to prepare for your exit from working life, CORUM L’Épargne recommends life insurance for three reasons:

  • Constitute a possible additional income

Regardless of the amount of your pension, retirement will mark a drop in your income (on average by 40%*). By making scheduled withdrawals from your life insurance, you can compensate for this loss of purchasing power.

  • An attractive tax system

Life insurance is also an investment that allows you to benefit from attractive taxation. Indeed, after 8 years of contract, your capital gains will be taxed, at the time of a withdrawal, up to 24.7% (7.5% for the flat-rate deduction and 17.2% for social security contributions) for payments below €150,000. The ceiling increases to €300,000 for a couple. Beyond these amounts, taxation increases to 30% (12.8% for the flat-rate levy and 17.2% for social security contributions).

Taxation, in the event of redemption after eight years, will also be favorable since you will then benefit from an annual reduction on income tax, of €4,600 for a single person and €9,200 for a married or married couple. PACS subject to joint taxation. These figures, in effect in September 2021, are subject to change.

  • Facilitated inheritance transfer

Choosing life insurance also means ensuring that you pass on your assets under advantageous conditions. In the event of death, contracts below €152,500 and whose payments were made before the age of 70 are simply exempt from inheritance tax. For life insurance contracts between €142,500 and €700,000, a flat-rate deduction of 20% will apply. The package then increases to 31.25%. For your CORUM Life contract, CORUM L’Épargne goes even further and guarantees 100% of your capital invested in the event of death before age 65.

The additional advantages of the CORUM Life contract

The guaranteed capital invested in the event of premature death (before age 65) of CORUM Life life insurance is not the only feature of this contract. While many life insurance policies are placed in low-risk euro funds with low returns, sometimes even lower than inflation, CORUM Life is a unit-linked life insurance contract. The units of account are the units of SCPIs and bond funds (dedicated to the financing of business development projects) from the CORUM L’Épargne range which exclusively make up the contract. However, the latter involve risks, in particular capital loss. This is not the case of the life insurance policy in euro funds, which invests in particular in government bonds.

This unit-linked contract launched in March 2020 offers access to diversified investment in France and internationally from €50. Access to the tax benefits of life insurance does not entail any additional costs, contrary to the characteristics of the main life insurance contracts available on the market. Only the subscription and management fees for the funds chosen within the contract are applied, as if you had subscribed directly. However, the amounts invested in the CORUM Life contract may be subject to fluctuations, upwards or downwards, and present risks depending in particular on the evolution of the financial or real estate markets. Past performance is no guarantee of future performance.

CORUM Life: each profile has its own policy

So that each saver can find the life insurance that suits him, CORUM L’Épargne offers 6 formulas. It is by combining its expertise on these 6 in-house products and its knowledge of the markets that CORUM L’Epargne has imagined the following profiles:

  • CORUM Life Essentiel (formula composed of 50% SCPIs and 50% bond funds)

This formula brings together the historical SCPI CORUM Origin and the group’s most flexible bond fund (BCO). This formula, launched in 2021, does not yet have performance indicator figures.

  • CORUM Life Equilibre (40% SCPI and 60% bond funds)

This is the most diversified contract since it provides all the bond funds in the CORUM L’Épargne range (BCO, CORUM BSD, CORUM BEHY and CORUM Butler Smart ESG). They are supplemented by shares in SCPIs CORUM Origin and XL. Its first 12-month performance was 11.6%.

  • CORUM Life Immo (55% SCPI and 45% bond funds)

This life insurance focuses on real estate in the Euro zone and outside the Euro zone (CORUM Origin and CORUM XL) and bond funds BCO and CORUM BEHY. The performance of its first 12 months was 9.9%.

  • CORUM Life Pur-BCO (100% bond funds)

Formerly reserved for professionals, this formula is now offered to subscribers wishing life insurance that focuses solely on the financing of business projects. This formula launched in 2021 does not yet have performance indicator figures.

  • CORUM Life Entreprises (25% SCPI and 75% bond funds)

This investment is invested in the financing of growing companies and their development projects while allocating a quarter of your savings to the SCPI CORUM Origin. The performance of its first 12 months was 14.3%.

  • CORUM Life Smart SRI (25% SCPI and 75% bond funds)

The CORUM Butler Smart ESG fund is at the heart of this formula. This fund takes into account environmental, social and governance issues to offer more sustainable growth. It is supplemented by other Group funds and an investment in SCPIs to offer you perfect diversification. The performance of its first 12 months was 14%.

Performance for the first 12 months is net of fees, calculated from March 25, 2020 to March 25, 2021. They do not predict future performance and do not reflect the performance of your contract, which depends on the date of your subscription.

The products marketed by CORUM L’Épargne are long-term investments that offer no guarantee of return or performance and present a risk of loss of capital and liquidity. Income is not guaranteed and depends on the evolution of the real estate and financial market and the rate of currencies. Past performance is no guarantee of future performance.

* Schroders Global Investor Study published on July 5, 2018, covering 22,000 respondents in 30 countries. The figures presented relate only to France.

Legal Notice

CORUM L’Épargne, SAS with share capital of €100,000, RCS Paris n° 851 245 183, registered office located at 1 rue Euler 75008 Paris, registered with ORIAS under number 20002932 (www.orias.fr) in qualities of financial investment adviser, member of the CNCIF, chamber approved by the AMF, agent in banking transactions and payment services, agent of insurance intermediary and general insurance agent under the control of ACPR, 4, place de Budapest CS 92459 75436 Paris Cedex 9.

CORUM Life is a unit-linked contract managed by the insurance company CORUM Life, SA with a management board and a supervisory board with a share capital of €20,000,000 governed by the Insurance Code, RCS Paris n° 852 264 332. Headquarters social 1 rue Euler 75008 Paris. Company subject to the control of the ACPR, 4 place de Budapest 75436 Paris Cedex 9.

SCPIs CORUM Origin, SCPI visa n°12-17 of the AMF of July 24, 2012, CORUM XL, SCPI visa n°19-10 of the AMF of May 28, 2019 and CORUM Eurion, SCPI visa n°20-04 of the AMF of January 21, 2020, are managed by CORUM Asset Management, portfolio management company, SAS with share capital of €600,000, RCS PARIS n° 531 636 546. Head office 1 rue Euler 75008 Paris. AMF approval GP-11000012 of April 14, 2011.

The bond funds BCO, CORUM BEHY, CORUM BSD, CORUM Butler Smart ESG are Irish funds approved by the BCI, managed by the management company CORUM Butler Asset Management, domiciled in Dublin and approved by the Central Bank of Ireland on October 19 2018 (no. C176313).

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