Generally, a senior citizen should enjoy his retirement and the benefits of investments already made before. Nevertheless, there are many older people who still want to make investments when they are 60, 65 or even 70 years old.
Moreover, they still have the option of doing it via different handles. Life insurance is one of the often preferred options in this regard. However, it is necessary to assess whether the expected benefits are still relevant.
How does the life insurance contract work?
Life insurance is now one of the French’s favorite investments. It is an extremely popular product both among young people, but also among seniors. The goal is then to open an account with a specialized firm and periodically pay a premium determined by the contract. The accumulated capital will thus generate dividends over time. When the subscriber dies, his heirs or the person named in the beneficiary clause will receive all the funds collected.
In addition, owners of life insurance can also make withdrawals, but will be liable for tax.
What are the benefits for seniors?
There are many benefits for seniors who decide to take out life insurance. Initially, it is primarily a means of securing one’s capital. In fact, the investment will be guaranteed by choosing the fund in euros. No loss should be recorded even if the yield is quite low. Or else, all subscribers over the age of 70 will benefit from exemption from inheritance tax.
Life insurance for seniors is thus not really made to achieve returns. It is above all at the tax and transmission level that the advantages of this investment vehicle are shown. However, if that person still lives for 19 years, an average return of 3% is still possible.
What type of contract should you bet on?
As it is a financial product like any other, the life insurance contract may be offered by several providers. It is therefore important to choose the contract that meets the best conditions.
First of all, you might as well commit for at least two years. Seniors also have an interest in favoring funds in euros and not taking too much risk with other vehicles that are not guaranteed. Also be aware of the various fees as they can potentially cut into profits. Comparisons must be made between the countless offers on the market.