Life Insurance

Life insurance is a long-term savings scheme intended for individuals. In exchange for a contribution, the insurer commits to paying benefits in the form of capital or annuities to the beneficiary.

The beneficiary can be the insured themselves, the spouse, the children, or any other specifically designated person. Its favorable taxation, tax advantages in the event of inheritance, flexibility, and profitability make it one of the favorite investments of the French.

The investments made within the contract can be of two types: Euro funds or Unit-Linked funds (UC).

In the Euro fund, the investment is made in the general assets (portfolio) of the life insurance company. This asset is most often composed predominantly of bonds, and, for the remainder, of stocks or real estate investments. Regarding payments made into the Euro fund, the insurance company guarantees the liquidity of the investment, a minimum return, and absolute security (a "principal" guarantee).

Some savers seeking higher returns turn to investments in Unit-Linked funds (UC), where the risk is directly borne by the saver. Some life insurance contracts offer a wide choice of unit-linked funds, allowing for strong diversification of the investor's savings.