“I want L’Oréal, LVMH or Air Liquide in my contract.” That’s what some life insurance holders ask their financial advisor. “There is often, initially, an emotional dimension associated with a particular company, especially among those who have had successful careers there,” notes Stellane Cohen, president of the online broker Altaprofits, a pioneer in the field with its product Titles@ Liv . The latter holds an average of 10 to 15% of the direct shares, most often in securities of reassuring companies – large capitalizations, with solid stock market performance – which are then held for several years, even decades.
“Most of the time, savers limit themselves to two or three shares in companies that make you dream, and it almost never exceeds 20% of the invested capital, confirms Emmanuel Narrat, director and founder of the Haussmann Patrimoine company understand , what they invest in, which is hard to identify in funds.”
Specifically, individuals who choose freely managed life insurance over which they have control can choose, in addition to traditional funds, to buy shares directly. Small subtlety to know in relation to a securities account or an equity savings plan (PEA): it is the insurance company that acquires the securities for you.
This has three consequences. First of all, you have to pay costs to pay this middleman. Then you will not be able to trade the security at a certain price, as the insurance company will buy or sell at the end of the day, at the closing price. And finally, you will not have the right to vote at the general meeting. So why go there, especially since PEA is a more flexible, cheaper and equally attractive from a tax perspective? “It is very effective for clients who have reached the payment limit of their PEA of 150,000 euros and who are looking to prepare their inheritance,” replies Guillaume Lucchini, founding president of the independent firm Scala Patrimoine.
Talk to future recipients
In fact, shares included in life insurance can be transferred on death, without inheritance tax, up to 152,500 euros per share. beneficiary. To do this, you must have made your payments before age 70. But even beyond that, the system remains interesting because capital gains remain exempt. “With an expected life, and therefore retention, of another fifteen to twenty years, this remains very attractive,” emphasizes Stellane Cohen. However, be careful to make it clear to your insurance company when you designate your beneficiaries that they can inherit the shares. In fact, insurance companies almost always prefer to pay in euros the value of securities valued at the time of death, which can do great damage if the period is unfavorable in the markets. It is also better to talk to your beneficiaries in advance to preserve any capital gains by selling the securities at the right time.
To implement this type of strategy, you must choose your contract carefully. Few regular public life insurance companies offer this option, and of course you need to find out more. If applicable, the portfolio of stocks available varies widely. “We only offer this opportunity to CAC 40 companies,” emphasizes Xavier Prin, Marketing and Communications Director at Boursorama. At Altaprofits, the choice extends from the CAC 40 to the EuroStoxx 50, including the SBF 120.
Some contracts such as Placement-direct Vie, Lucya Cardif, Linxea Spirit 2 or Netlife also include some securities listed in the United States. “Finally, there is still the possibility of contracts in Luxembourg, which make it possible to open a dedicated internal fund, a kind of encapsulated securities account,” explains Guillaume Lucchini. Enough to access a significant selection of titles. But this option is not open to all budgets, as it often requires a minimum of 250,000 euros to subscribe. In any case, be careful with fees, as the prices of direct titles are often increased. Make sure the game is worth it.
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