Life insurance is regaining its preferred place in the hearts of French savers. According to the latest annual survey by Savings Circle, a “think tank” (idea laboratory) on savings and retirement, presented on June 27, 2024, this historically popular investment returns to the top of the ranking of financial products. The survey, conducted among a representative sample of 1,035 French people aged 18 and over, reveals that 61% of respondents consider life insurance to be an interesting investment in 2024, compared to 56% in 2023. It therefore moves from third place (after Livret A and rental properties) to first rank (before Livret A and the pension savings) during one year.
This increase in life insurance can largely be explained by the significant increase in returns on Euro funds. As a result of central banks’ restrictive monetary policy and insurers’ desire to remain competitive with Livret A, the average rate (net of administration fees but gross of income tax and social contributions) rose from 1.9% in 2022 to 2.6% in 2023, according to France Assureurs, the professional association of insurance companies and mutuals.
All socioeconomic categories
The attractiveness of life insurance transcends socio-economic categories. If 72% of people with high incomes find it interesting, it also appeals to 54% of low-income households. In particular, life insurance thus comes at the top of the preferred investments in all income groups, with the exception of lower average incomes, which favor Livret A.
If life insurance is at its peak, this is no longer the case for real estate. The survey from the Savings Circle shows that rental investments are experiencing a clear decline in the French’s preferences. After moving from first place in 2022 to fourth place in 2024, it is cited by only 56% of respondents, compared to 65% two years earlier.
A changing context
This change in savings preferences reflects a changing economic context. The rise in interest rates makes guaranteed investments such as the euro life insurance fund more attractive, while the uncertainty weighing on the real estate market dampens investors’ enthusiasm.
Life insurance also benefits from its versatility. It allows you to combine security with guaranteed euro funds and performance potential with units of account, while offering tax benefits when transferring assets. Returning to life insurance doesn’t mean giving up other forms of savings. The closeness of the scores between the different investments underlines the importance of a diversified savings strategy, adapted to each person’s goals and risk profile.
Source: Amphitéa survey 2024 – Cercle de l’épargne – France Assureurs, press conference, 27 March 2024
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