Life Insurance Contracts Without Management Fees – Savings Guide

Costs, the main enemies of investment performance

It goes without saying, but it’s always important to keep in mind the impact of fees on the return on an investment. Savers who are not yet convinced of the importance of reducing fees, both on payments and management fees, will have plenty of time to see the impact of fees on an investment with some simulations. It is then that the search for lower-cost investments becomes even a priority objective for some savers. And in this perspective, the “Holy Grail” would be a insurance contract with no payment fees, no arbitration fees and no management fees. This seemed unthinkable a few years ago, yet there is already an offer on the market. Hopefully others will join this list.

No payment fees and no management fees? For real ?

If some savers are willing to opt for one contract more than another with a difference of only 0.05% in management fees, they are probably not yet aware of the existence of life insurance contract offers that do not charge fees. payment or unit-linked contracts Operating expenses. It seems confusing to have life insurance without management fees (linked to the contract, the management fees internal to investment vehicles (units of account) are not linked to life insurance contracts). The first question that comes to mind, in the context of a free life insurance contract, is how is the distributor paid? Everyone has to live.

Life insurance 2.0: contracts with no management fees

You know now, sincetransparency obligation on life insurance costseach investment in a unit of account allows the distributor to receive a retrocommittee on outstanding payments. This fact was “hidden” (or at least not clearly shown) before from savers, it is no longer. This actually leads to some confusion about the accumulation of costs in life insurance, just like those practiced through PERs (see average costs of PERs). What really matters for savings are the costs associated with your life insurance contracts. Internal management fees for investment vehicles do not directly affect them, as the published valuation already takes this into account. Yet this is how a life insurance contract can be marketed without imposing any direct management fees on savers. It is the fund management company that pays this commission to distributors and / or insurers. Do you understand why insurers are pushing you to invest in units of account? Not only does their insurance business not come into play, the capital on a unit of account is unsecured and they also receive internal fund retro-commissions, without affecting the published performance.

Life insurance contracts with no management fees

Hoping that this list of life insurance contracts with no installment fees and no operating fees will grow over the months. CORUM LIFE insurer has set a precedent. Clearly, this CORUM finance troublemaker, which has notably performed best on SCPIs over the past 10 years, has thrown a stone in the insurers’ annuity pool by providing access to investment media at exactly the same price terms as when subscribing. directly. Enough to silence critics of life insurance costs to invest in SCPI stock.

While some life insurance contracts claim to be among the cheapest on the market, while offering management fees, it is clear that they are not the cheapest on the market.

Contracts Insurer Investor Reviews (1) Charges / Vers. max. UC management fees
CORUM SAVINGS
Corum Vita
CORUM VITA 3.54/ 5 (35 reviews) 0.00% 0.000%
Presented list sorted by default by contract name. Non-exhaustive list of market contracts. Selection made on the basis of the criteria indicated before the table is displayed.

(1): Instant reader votes, 1 vote is allowed per contract per reader (IP address). It does not induce anything on the intrinsic quality of the contracts.

(2): Rate published by the insurers, net of management costs, gross of social security contributions.

(3): Net tariffs for savers, net of social security contributions.

What are the average costs of life insurance?

It is quite surprising that savers are willing to pay so much tax. Obviously, the best-selling contracts are the most paid ones, through the banking networks. A sign that French savers do not pay enough attention to the management of their personal finances.

Costs of life insurance contracts
Costs Minimum Mean Median Maximum
Payment fees (1)

0.00%
(71 contracts with payment fees (1) at 0.00%)

2.16%

2.10%

5.00%

Management fees on euro funds

0.35%
(6 contracts with management fees on funds in euros at 0.35%)

0.74%

0.70%

4.00%

Unit-linked management fees

0.00%
(1 contract with unit-linked management fees at 0.00%)

0.82%

0.80%

1.90%

Arbitration fees

0.00%
(80 contracts with arbitration fees of 0.00%)

0.95%

0.50%

15.00%

Paid annuity expenses (arrears)

0.00%
(198 contracts with compensation on annuities paid (arrears) at 0.00%)

0.13%

0.00%

3.00%

The number of life insurance contracts studied is 289, on which these average and median costs are calculated. The breakdown of the contracts is as follows: 32 life insurance contracts in euros (therefore without unit-linked management fees) and 20 multi-support contracts that do not offer funds in euros (and therefore no fund management fees in euros) . PEA and PEA-PME insurance contracts, as well as capitalization contracts, are not included in these calculations.
(1): the commissions on payments are negotiable, the calculations are made on the commissions indicated in the general conditions (therefore these are maximum commissions on payments).

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