why you might soon be rubbing your hands


Savings seem to be doing well in this period of inflationary crisis. The holders of A booklet – or other comparable regulated products such as Sustainable and solidarity development booklet (LDDS) or the People’s Savings Booklet (LEP) – have indeed enough to rub their hands: the rates of return on these investments have been upgradedas already explained Planet. From this Monday, August 1, 2022, the rate of remuneration for the Livret is 2%, in accordance with the proposal of the Governor of the Banque de France. That of LEP rises to 4.6%. In either case, however, this is not enough to offset inflation, which INSEE measures at 5.8% in France in June, recalls Progress.

If this is obviously not enough to put savings back in the foreground, there may be something to make life insurance holders jealous. Is right ? Maybe not, recalls the online bank Boursorama on its information site. If the State is not responsible – or, at least, not directly – for the economic situation, it could still lead to higher rates for certain life insurance contracts. And this time, it may be the European Central Bank (ECB) that potentially has to be thanked

Such a measure, it goes without saying, has multiple impacts. It can be brutal for some heavily indebted, which the organization says it paid attention to. But it can also delight some French savers…

Life insurance: should we be happy?

The rise in ECB rates, continues Boursorama, will indeed have an impact on the life insurance of French women and men. At least, for all those who have opted for funds in euros. These are indeed composed of 80% government and corporate bonds, on average, which means that a rise in yield should eventually occur.

That being said, the expected increase will be gradual… and slower than that of bond interest rates.

Switching from life insurance to the regulated booklet, a good idea?

Some might therefore be tempted to take advantage of the rise in the yield of products such as the Livret A or the LEPto transit the funds placed on a life insurance policy.

It’s not a great idea, according to Boursorama, who reminds us that such arbitrations could put insurers in difficulty… and push them to block such operations as provided for by the Sapin 2 law. On good terms.

It would seem that the inflationary context plays in favor of life insurance. The preferred placement of the French signed its best first half since 2010, according to figures from France Assureurs. 76.4 billion euros in contributions were recorded in the first half of 2022, i.e. 0.7 billion more than in the first half of last year. In total, 12.1 billion euros were collected over this period; this is 1.8 billion more than in the first half of 2021.

Life insurance: record figures

It seems like the inflationary context plays in favor of life insurance. The favorite placement of the French signed his best first half since 2010, according to figures from France Assureurs. 76.4 billion euros in contributions were recorded in the first half of 2022, i.e. 0.7 billion more than in the first half of last year. In total, 12.1 billion euros were collected over this period ; this is 1.8 billion more than in the first half of 2021.

Savers have turned to units of account, abandoning less profitable euro funds. Unit-linked contributions increased by 41% in the first half. The increase was 39% over the same period in 2021. Conversely, funds in euros recorded negative net inflows of 8.8 billion.

Life insurance: the right criteria for choosing it

To take full advantage of the returns of life insurance, it is still necessary to choose it well. Taking the time to compare the different products is necessary for successful placement. Several criteria must therefore be taken into account in order not to be mistaken:

  • Compare returns. Not surprisingly, this is a crucial step. it is preferable to opt for the yields of euro funds.
  • Turn to managed management. If you don’t know the workings of life insurance very well, this is THE solution to choose. It makes it possible to secure the money invested by delegating this mission to the manager of the contract.
  • Choose a format suited to your profile. A digital life insurance to follow its placement in real time or a more traditional product to rely on the experience of an advisor?
  • Beware of hidden fees. Reading contracts carefully and hunting down hidden life insurance costs is essential to avoid unpleasant surprises.
  • Choose the right duration. Investors must set themselves clear objectives in order to make the right choices, particularly in terms of duration, even if life insurance generally remains fairly available. If he wishes to be able to recover the funds invested quickly or if he values ​​the return rather than the rest, this must be taken into account.

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