There are certain financially important projects and deadlines in life. These projects, therefore, need to be planned through the investment of money, in particular with investment or savings, in order to prepare them properly. This is the case with long-term projects such as real estate, major purchases or even retirement.
From this perspective, and particularly in France, life insurance occupies a good place among the most widely used means of investment. For the subscriber, this involves signing a contract with the insurance company allowing him to deposit an initial capital which is equivalent to an amount negotiated in advance and liable to change. This policyholder’s money will be charged a certain interest rate decided upon after negotiations with the insurance company. Therefore, it appears that life insurance constitutes a highly profitable means of investment for the beneficiary. It should be noted that life insurance exists mainly in two variants. Thus, the subscriber can choose a contract in euros or in bonds. However, the contract with the investment in euros contains more simplicity.
Indeed, the subscriber has the possibility of making withdrawals at any time, in addition to benefiting from very profitable interest rates. The rates of return on life insurance are very high, which is why they are so popular. This may even have pushed the banking and financial authorities to campaign for a reduction in life insurance remuneration, which is considered very high. Thus, this also raises the debate on the rigidity of the regulations applicable to life insurance and thus calls for more caution to preserve insurance from any weakness or dispersion in the regulations.
The importance of stability in life insurance regulation
Life insurance is today the preferred means of investment, particularly in France, with high rates of return accompanied by numerous privileges for beneficiaries, including a very advantageous tax regime. However, in the absence of clear and strict regulations, this could pave the way for a certain legal uncertainty which, in the long term, could threaten the performance of life insurance. Indeed, the influx to insurance companies can force them to buy bonds at low rates, and thus reduce the return on life insurance. This is why savings associations call on beneficiaries to be more careful and call for the adoption of more rigid and stable rules. The proliferation of reforms and regulatory or fiscal measures affecting life insurance in no way guarantees the safety of beneficiaries. It can even threaten the confidence that subscribers have in life insurance, privileged by its security and its advantages, in particular on the tax plan. Thus, clear and stable rules will help to make life insurance more attractive, which, despite everything, remains one of the most popular means of investment and savings on the market.