What are the collected fees?

Insurers are growing savings on behalf of their clients. They compensate by deducting various expenses. The main are the fees on payments, deducted from each investment. They reach up to 5% of the placed amount. Each year, companies also levy capital management fees, which range from 0.4 to more than 1%. They are in addition to the internal costs of the selected media.
These costs impact the actual financial performance.

How to see clear on costs?

All fees collected in a life insurance contract must be clearly stated and gathered in its general conditions. They appear in a present box as soon as the first or second page of this document, gathered together in a single entry. No other fees than those listed here may then be requested, for the duration of the contract.

On the other hand, the UCITS used for support by the units of account management fees do not appear in this regulatory text box. To know, please read the information leaflet of the Fund which is supplied on request by the Distributor, or you can get on the website of the financial markets authority. Their importance is secondary for the policyholder insofar as these costs are directly deducted from the performance announced by such UCITS.

In all cases, it should be good to measure all the costs of a contract before purchasing it. Long term, the more forgiving are the annual management charge of life insurance it even, which are collected annually on constituted capital.

However, fees vary greatly depending on the nature of the contract and its mode of distribution. The products sold on Internet, personalized advice, and very simple products in general have low charges. Very complete contracts, incorporating many funds and sold by advisers, are more heavily loaded.

How to retrieve my money?

Life insurance is a long-term investment, but saving is generally still available.
There are three ways to retrieve the capital: only once in many, or transforming those into annuity, i.e. an income paid until death.

The insured automatically receives the accumulated capital is alive to the expected term of the contract, the insurer paying a check representing the entirety of his savings. If there no need of this money at this time, the insurance company suggested generally postpone the exit by renewing the contract by tacit agreement.
This contract period is indicative: If you need your money sooner than expected, it is not blocked. Each contract includes in fact a 'redemption value' permanent, corresponding to the net amounts paid and financial upgrading’s. Rare life insurance levy penalties of output if it is early, but may not exceed 5% of the amounts paid.
When the insured dies before the end of his contract, capital shall be paid to the 'beneficiaries in case of death' that it has appointed.

Three exit doors

Three exit doors exist in most life insurance contracts:

·      The «redemption» total corresponds to a definitive closure of the contract. You remove at once all your capital. It is a decision without return and if you again want to save in the context of life insurance, you will need to open a new contract then wait eight years to optimize taxation. The closure of a contract by total redemption may also lose inheritance, acquired benefits through the age of your payments.

·       The partial redemption to remove part of the constituted capital, while leaving the balance grow. It is a very practical solution to supplement income during retirement, or to deal with an unexpected expense. Money that remains on the contract retains all the tax benefits acquired from the origin.

·       The transformation into a life annuity is to exchange its savings - or part - against a regular pension, paid by the insurer to the insured's death. It's a radical solution, because savings is not yours. In return, you can be sure to receive this income as long as you are alive, even if you beat longevity records.