There are a thousand and one ways to boost the performance of your life insurance. Most strategies are not 100% effective. Hence the purpose of this article. The best solutions for optimizing the performance of his contract are to be recommended. But should I? Here are our tips.
Betting on a contract combining performance and notoriety
There is no miracle solution to increase the performance of your life insurance policy. It should also be noted that all the contracts available on the market are not equal. The best performers are preferred. They are easily identifiable by their net returns: between 2% and 3%.
Attention ! Some insurers communicate only on the gross returns of their contracts. So remember to check the annual net returns before subscribing. We are talking here about the past performance of each contract. so far, there are no experts yet able to predict the future returns of life insurance contracts.
On the other hand, notoriety is an important criterion to be taken into consideration. The contracts offered by known insurers in France are more reliable, it is undeniable. Do not forget to consult a comparison of the best life insurance contracts. Favor those who have entered the top 5 or the top 10 several times.
Find out about payment fees
Most life insurance policies available today include payout fees. Of course, they represent only a small percentage of the sums invested. Ditto for the entrance fees. The good news is that some insurers do not charge any payout fees on their contracts.
One of the strengths of a life insurance policy is the absence of entry fees and/or payment fees. If you find any, do not hesitate to subscribe to it. However, there are a few points to watch out for, such as management fees. They may be higher compared to other contracts. So prefer reduced fees (0.5% for example), even if the subscription is not entirely free. Management fees should not exceed 2%. But each insurer has its own strategies.
Further diversify your contract by implementing in different investment vehicles
We already know that euro funds are guaranteed, but allow low remuneration. In search of better performance, some savers prefer to invest their capital in units of account (UA). Either way, they are more risky. The winning strategy is therefore to diversify its investment vehicles in life insurance.
More concretely, real estate investment companies are among the most successful investment vehicles on the market. Each year, they generate returns oscillating between 4% and 7%. This is significantly higher compared to funds in euros: about 1.5%.
With a view to diversification, multi-support contracts are to be preferred. They offer a wide range of choices of investment vehicles: SCPIs, OPCIs, ETFs, shares, bond funds, etc. By diversifying your investments, you are more likely to boost their returns in the medium or long term.
To benefit from a more personalized strategy, contact a private management consultant. He does not work for free, of course, but his expertise will be very useful to you in successfully diversifying your investment vehicles.