Multi-support life insurance: the right tool to diversify your savings

Article sponsored by Carac

Life insurance is the primary means of saving in France: at the end of March 2022, outstanding amounts of life insurance contracts reached €1.857 billion(1), an increase of 2% year-on-year, well ahead of Livret A outstanding, another investment much appreciated by the French. Life insurance has many qualities, including its taxation:

• during the term of the contract, gains redeemed after 8 years benefit from reduced taxation,
• in the event of death, the transferred amounts are exempt from inheritance tax up to 152,500 euros per beneficiary if the payments are made before the age of 70, and up to 30,500 euros for all beneficiaries after the age of 70.

Flexible in relation to your profile and your goals

Life insurance comes in the form of mono-support or multi-support contracts. As part of a mono support contract, all savings are placed in a fund in euros. This placement guarantees, at the end of the contract, the payment of capital equal to that which was deposited when the contract was opened (minus subscription and administration fees) plus any interest.

On their part, multi-support contracts are conducive to the diversification of savings, which are placed both in a safe euro fund and in different units of account (UA). Funds expressed in units of account make it possible to invest in markets with different characteristics (property, European and international financial markets) and hope for higher returns than funds in euros. These investments, which must be considered for the long term, are not guaranteed and there is a risk of capital loss, but they allow for a more dynamic management of savings. Thus, the Carac Epargne Patrimoine contract (2) can develop with your projects, and within the framework of profiled management, the risk share is adapted to your investor profile.

Simplified control

The most experienced savers can choose free administration. It allows them to distribute from 25% to 100% of the outstanding amount on the media among those offered by the contract, depending on the opportunities to be exploited in the markets. In addition, administration is becoming increasingly simple, thanks to digitization, which not only makes it possible to draw directly online and very easily follow the development of one’s savings, make payments or update one’s personal information.

In any case, it is useful to meet regularly with a mutual insurance adviser, by phone, in a branch or even at home, to reassess your situation and adjust your savings if necessary.

(1) Source : France Insurers, 27 April 2022 – “In Q1 2022, net inflows of life insurance reached a level not seen in more than 10 years”

(2) Charac Epargne Patrimoine is a multi-support individual life insurance contract with free payments, denominated in euros and in units of account.

Communication of an advertising nature

The Charac commits to the number of units of account and not to their value. The financial risk of exchange rate loss is therefore borne by the member. The amounts invested in units of account are not guaranteed, but subject to upward or downward fluctuations depending in particular on developments in the financial markets.

Carac mutual savings, pension and provision. Mutually subject to the provisions of Book II of the Code of Reciprocity. SIREN: 775 691 165. Headquarters: 159, Avenue Achille Peretti CS 40091 92577 Neuilly-sur-Seine cedex.