The advantages and disadvantages of personal life insurance

Life insurance has long been viewed as savings for the estate. Think again, this way of saving can also be used by people who subscribe to it during their lifetime.

Why take life insurance?

Life insurance can be used as a means of long-term foresight or as a means of saving in order to accomplish a future project. It is possible to withdraw part of the funds while keeping your contract active. On the other hand, some contracts oblige to leave minimum sums on the invested media if one wishes to keep the life insurance contract.

The funds invested are always available. That is, your money is not blocked, so you can get it back by making a partial or full redemption.

Another advantage is that you can diversify your investments by investing in money or stocks for example. All you need is the right broker who will allow you to choose the composition of your portfolio.

Life insurance can be adapted to any type of saver. Whether you like risk or not, you’ll be able to find a contract that’s right for you. Taking out life insurance in euro funds is completely safe, but there will be very little payoff. On the other hand, making an investment in bonds or stocks will be much more risky, but at the same time will also be much more profitable. So it’s up to you.

In terms of taxation, taking out life insurance can be advantageous in that the longer your contract remains active, the more your taxation will be reduced on your earnings. As soon as your contract has reached 8 years, you will benefit from very favorable taxation.

In addition, you can pay the amounts you want and repeatedly without limits. There is no maximum limit or limit on the amounts to be invested. On the other hand, depending on the brokers chosen, there will be a minimum to invest.

Another plus for people who want to take out investment life insurance, it’s not a problem if you don’t know anything about it. Indeed, you can choose a management under mandate, piloted or co-piloted, which implies a follow-up. You will be advised and a qualified person will manage your portfolio.

If you subscribe to an online contract, normally you will not have to pay any fees (entry, exit, etc.). However, you must check that this is the case before any subscription.

Some disadvantages all the same

When taking out life insurance, there is often a mandatory minimum sum so not everyone has the required sum. In addition, concerning minors, there are additional constraints to take into account.

As for management fees, they are extremely expensive but depend on the broker and the contract. To reduce these costs, we must turn to online contracts.

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