Life insurance is a savings product that allows you to make various investments and thus increase your capital. It is therefore not necessary to confuse life and death insurance, the latter being a provident product.
The life insurance allows you to save without constraint, because contrary to the received ideas, your capital is not blocked there. You can pay your savings (we are talking about premium payments) or withdraw a portion of it when you want (we are talking about redemptions). In addition, life insurance is a very advantageous savings product in terms of taxation. Of course, you can recover the savings at any time, but saving for at least eight years will save you money, at least in part. This makes life insurance an ideal savings product in the medium or long term. You can subscribe to one or more life insurance policies, and you can also open a contract on behalf of a third party. When you open the life insurance, you make a down payment, then you can make payments, punctual or regular, if you wish.
With life insurance, your money is invested:
The breakdown between euro funds and units of account depends on the risk you want to take. Life insurance is suitable for all investor profiles: you can be cautious or very dynamic. Factors that should enable you to measure risk taking are:
The choice of investment media is not necessarily easy. Fortunately, there are several modes of management, to choose according to your financial knowledge: free management, management recommended, or management under mandate.
Expenses on a life insurance
The total costs of a life insurance can be broken down as follows:
As they accumulate, costs can greatly reduce the performance of the investments made. We advise you to be vigilant on all costs. In this case, you should never buy life insurance with entrance fees.
Life insurance is one of the most profitable savings products in terms of returns: the annual rates of Livret A and LDD do not exceed 0,75% (2015), the average yield of the funds in euros, as for it amounts to 2.3% (net of management fees, in 2015). Most importantly, the performance of life insurance can come from a judicious choice of units of account or dynamic investment vehicles. For example, over the last five years, European bonds yielded 24%, European equities 41.79%, and US equities 124% (note however, past performance is no guarantee of future performance and these investments are risky. loss of capital).
Life insurance gives you the benefit of tax advantages, both on interest earned and death duties; it is one of the least taxed investments in France. According to the age of the contract:
Another tax benefit of the insurance is that it is not part of the estate of the insured – except in the case where no beneficiary is designated. Life insurance is thus more advantageous in terms of taxation, because your estate you benefit from a 50% discount greater than the reduction of a conventional estate. The deduction taken into account with life insurance is € 152,500 per beneficiary, for amounts invested before the age of 70. In addition, the tax rates are lower: in a traditional succession, the tax rate can go up to 45%, while that of life insurance is capped at 31.25%.
When you buy life insurance, you must complete a beneficiary clause, where you choose life beneficiaries (usually yourself), and beneficiaries in the event of death. The latter will receive the remaining capital on your contract during your succession. This beneficiary clause must absolutely be fulfilled, otherwise the capital would lose any tax and civil benefit. You are also free to designate one or more persons, equally or unequally, within your family or not. You can specify multiple ranks of beneficiaries: if the first one is no longer alive, the second will be profitable.
When you invest with Nalo, your savings are placed in mandated life insurance. We recommend a tailor-made investment portfolio, and we take care of making it work for you. Our management is adapted to your projects and objectives, in line with your heritage environment (income, real estate, financial wealth).
Thanks to our financial planning technology , you can simultaneously organize your various financial projects. For example, you can prepare for retirement, save for your children’s education, or simply seek to strengthen your wealth at the same time on a single life insurance policy. For each of your projects, you define a time horizon and a goal, and we make the right investments, your investment.
Unlike other life insurance, Nalo is based on index funds , also known as trackers or ETFs (for exchange traded funds). These funds replicate a stock market index. Their fees are considerably lower than the SICAV or the FCP, which allows to preserve the performance. By investing in dozens, if not hundreds of companies, ETFs offer you optimal diversification, which helps reduce risk while maintaining a significant return.
With Nalo, you also benefit from reduced fees : no entrance fees, no arbitration fees or fees. Life insurance administrative expenses are 0.85% / year, ETF management fees are 0.55% / year, plus an average of 0.25% charged by the management companies. The use of low-cost ETFs and the automation of low value-added tasks now allow us to offer a better quality service, almost half as expensive as the offers on the market .