With yields below 1% for many contracts, find an alternative to euro funds in the insurance becomes necessary. Some solutions exist Judge Vincent Cudkowicz, Managing Director of Bellevoir.fr and Primaliance.
Le Monde
Question to an expert
What are the alternatives to euro funds in life insurance?
The Euro Life Insurance Fund may seem irreplaceable for the investor seeking performance and safety. However, its constitutive triptych – an attractive yield, a capital guarantee and the availability of permanent funds – is an economic incongruity. This one is now revealed in broad daylight, while low rates persist and inflation comes out of bed. Most of the euro funds offered yields below 2% in 2021 and a large part of them is below 1%.
To replace the fund in euros, the investor must make a cross on one of the assets that made his charm. Some real estate media offered as part of life insurance have been providing a very honorable performance around 4%. The investor must nevertheless abandon the capital guarantee and, once the first six months and the amortized entry fees, he may, if necessary, find his funds relatively quickly.
The so-called “Euro-growth” funds that promise to combine the dynamism of financial markets and safety do not offer a permanent guarantee of capital. It can, for example, be 80% after eight years. Nevertheless, they constitute a solution to the funds in euros, provided that you agree to maintain its savings a certain time. In 2021, the best products revealed a performance close to 5%, including their diversified investments such as real estate and unlisted actions.
Vincent Cudkowicz, General Manager of Bellevoir.com and Primaliance