Yields on euro life insurance funds continue to decline year after year. If these make it possible to secure part of his savings, the news invites us to think about the distribution of his investments and to turn to unit-linked supports *. Here are 5 tips for successfully diversifying your life insurance!
Take stock of your needs
Life insurance often responds to specific projects and needs: savings for children’s studies, additional income at retirement or to finance dependency, constitution of a contribution for the acquisition of a home, capital to pass on to its relatives…
Each of these projects corresponds to a investment horizon : short, medium or long term.
The availability of savings is a determining criterion in the management of your contract.
- Are you in danger of needing your savings in the short term? Better to direct your investments towards secure or very low risk media.
- Are you considering a medium-term project? You can opt for an investment with controlled risk and moderate return prospects.
- Conversely, for a long-term project, you can include more units of account * in your life insurance, as they give you potentially higher profitability. In fact, the longer the deadline, the more the risk of loss of capital is diluted.
Unit-linked vehicles present a risk of capital loss. Before any investment, be sure to define your savings profile with your advisor.
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Know your savings profile
Your savings profile is defined according to your risk appetite or aversion, your plans and your knowledge of financial products. The key to successful diversification is to assess the risk you are willing to take: this can be assessed using a very simple test.
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Take the test
Concretely, there are 3 types of profiles:
- Prudent : above all, you prioritize the security of your investment. It is therefore advisable to keep the vast majority of your fund holdings in euros and to choose low-risk units of account, such as bonds;
- Moderate: here, you are betting on a balanced investment between funds in euros and units of account;
- Dynamic:you invest mainly in units of account.
Choose the appropriate management mode
If units of account still have a bad press with some savers, it is because many do not know what they are made up of and what exactly the associated risks are.
Savers do not always have sufficient knowledge about stocks and bonds or the time required to manage their savings. This is not a brake, however: depending on your level of expertise in the stock and financial markets and your available time, it is possible to opt for a permanent profile or independent management of your portfolio .
Permanent profiles
The MACSF offers 3 different ones, which align with the test results on your savings profile:
- The Serenity profile: 65% of your investment is broken down into euro funds and 35% into units of account;
- The Balance profile: you enhance your capital thanks to a 50/50 split between funds in euros and units of account;
- The Dynamic profile:you are aiming for a better potential performance thanks to assets invested 80% in units of account and 20% in funds in euros.
Free Profile
As its name suggests, the Free profile corresponds to a autonomous management of your contract, which implies that you choose alone, or with the help of your MACSF advisor, the distribution of the supports of your life insurance.
Make the right choices at the right time
However, your risk appetite, your projects, your financial situation, in short your savings profile, may change over time.
You can thus pass:
- from a secure management profile to a more dynamic profile if your needs or your situation so require;
- from a managed management to a free management, if you wish to carry out your own arbitrations in an autonomous way.
Your life insurance contract follows, because it is not a frozen product!
In Free profile, you can request a arbitration on your life insurance : this consists in modifying at any time the distribution of your assets between funds in euros and units of account or between several units of account. Note that switching from one of these media to the other has no impact on the life insurance taxation , because this operation of reinvestment of funds is not analyzed as a redemption.
Choose the right insurer
To compare and choose insurers, you will take into account:
- The management optionsproposed, which must adapt to your savings profile;
- The seriousness and the financial soliditythe insurer, who must be recognized as a trusted player in the market;
- The quality and selectivity of financial range: is it better to have a plethora of media from which it is not easy to choose or a limited but complete range of rigorously selected units of account? ;
- The digitalization of services: you will appreciate being able to connect with a few clicks on your personal space and find out how much your savings have earned you since the last time you consulted your account, manage your contract, make payments and arbitrations …
* The insurer only commits to the number of units of account and not to their value. The amounts invested in unit-linked vehicles are not guaranteed but are subject to upward or downward fluctuations depending in particular on the evolution of the financial markets. The description and operation of unit-linked vehicles are detailed in the contract information notice, in the Key Information Documents (KID) and in the Key Investor Information Documents (KIID) or in the equivalent documents approved by the AMF, available on the Financial support page of the macsf.fr site.
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