When it comes to the perfect choice of life insurance, then you will need the right direction for the same offering a wide plethora of chances for you.
Life insurance is one of the favorite financial investments of Americans. It meets certain expectations: to build up savings in the long term to carry out a project or to supplement its income at the time of retirement. It makes it possible to prepare the transfer of its capital while optimizing its taxation.
Life insurance and its benefits
Life insurance is an accessible, flexible and available investment from a few tens of euros, it is possible to take out a contract and then feed it according to its capabilities. Regular or one-off payments, the subscriber chooses according to his savings capacity.
On the other hand, if the capital is transferred to the spouse or spouse designated as the beneficiary, it is not subject to tax, inheritance tax and the flat-rate levy.
The fund with guaranteed capital: this is the ideal support for all savers who do not wish to take risks. Indeed, this one is secure and the sums placed can not decrease.
An added benefit: generated interest becomes productive as it is capitalized. However, the yield tends to fall steadily, but the best contracts offer a yield of between 2% and 2.5% in 2018. It is therefore much higher than those of the regulated booklets.
Life insurance and diversification: if the subscriber wants to increase the performance of his savings, he has the opportunity to invest in real estate or financial markets. This is the multi-support life insurance policy.
Returns may be higher in the medium or long term, but savings are not protected. These are interesting supports to benefit economic dynamism.
Managed or free management of life insurance: the subscriber has the choice between:
The management by itself of his contract: it is he who chooses the media in which he invests and who decides all the arbitrations according to their evolution. This free management can still be supported by an automatic arbitration solution, offering the possibility of limiting losses or securing earnings. You have to have time and know at least the financial markets.
The delegation of management: it is then the financial institution that manages the contract. In general, it offers contracts called managed management. Assets are managed in a dynamic, balanced or prudent manner depending on the time during which the investment is contemplated and the risk the investor wishes to take. The manager is responsible for distributing the assets on different supports: actions, mandatory or monetary. This mode of management brings tranquility to the risk that is measured and corresponding to the objectives set.
The important criteria to make the right choice
Certain criteria deserve all your attention to choose the contract adapted to your objectives.
The choice of your insurance
When selecting a contract, it is also an insurer that you choose. The body that manages your contract can be a subsidiary of a mutual, a bank or an insurance group. In all cases, he is responsible for managing the contract and the outstanding amount of the proposed euro-bank (s). Prefer an actor who has a good reputation and a certain anteriority and notoriety.
Avoid bank life insurance: the offer is constantly renewed and old contracts often are forgotten or treated with little attention.
“Some institutions serve small returns to underwriters of old products to boost the rate of newer offers.”
Beware of those who offer big bonuses, insurers offer subsidized rates to those who invest large amounts or who take risks to the detriment of others. However, you can turn to online brokers who have negotiated contracts, offering very good conditions. And then, know that your money is in the hands of the insurer and not the broker.
Prefer moderate fees
Insurance with fees of 2, 3, 4, 5% with each payment is to be avoided, the latter affecting the profitability of your investment. These fees are negotiable. The best is that there are no fees on the installments or on the repurchase and arbitrage between supports.
The management fees are between 0.5% and 1% of outstanding. The less important they are, the more interesting it is for you. They are generally larger on the units of account than on funds in euros. If the support is guaranteed, the costs are included in the rate of remuneration avoiding unpleasant surprises. Note that on Internet contracts, some annual operations of transfer from one medium to another are offered.
All in all, it has to be kept in mind that you will need the right place and situation for the perfect life insurance and there you need the perfect detail now. If you head for the best option and policies, the result is essential and perfect.