The money placed in the French life insurance is it safe from latourmente that hit financial markets? Investors who have invested in euros on the media are the envy: their insurer guarantees capital. But they sometimes feed some concerns about performance to expect from their investment in the future. A private stock market in free fall, for now, insurers hope to make gains on investments – more modest – in shares.
If they invest in government bonds German and French, the safest, they must accept historically low interest rates: So just bring back the securities in the future. If they have slipped into some Greek bonds portfolios, they will see a loss if Athens fails. This will reduce the financial gains to be redistributed to policyholders.For now, a bit special accounts of the insurers allowed them to keep a cool head to the crisis of sovereign debt, and diving obli gations of Italian and Spanish. Until they sell their obligations, they do not, in fact, see for losses, regardless of their values. And they continue to reap the coupon (interest) of such securities.
"All insurers have no bonds devices: we, for example, we have none in our funds in euros, says Jean-Pierre Decourcelle, an actuary with Plan. Similarly, insurance companies are forced to find capital losses on shares if they fell heavily over a long period. If the markets return to the height of the end of the year, they will not have provisions to be made on the job. "Finally, insurers are sighted managers.Many have set aside a portion of profits in past years, and are ready to dip in to keep the remuneration available to investors.
Contracts in shares have plunged since the summer
Nevertheless, professionals predict a further decline in yields in the future. "The glorious years experienced by the life insurance rates of return regularly beating inflation ends. The challenge ahead for insurers is how to "at least maintain" the purchasing power of savings and to accompany the rise in interest rates will happen sooner or later the bond markets low interest personal loan.At that time, supports the euro should be able to follow this up, for the funds in euros of contracts of life insurance is an attractive investment, "said Hervé Shield CEO ACMN Life.
The crisis is most distressing for the subscribers who have chosen to diversify their life insurance on equity mutual funds whose value has plunged since the summer. They can take their troubles patiently … or bad for the capital and cut their intention to leave their families. If this capital is now less than the amount paid on the original contract, guaranteed "floor", usually scheduled by the insurer, can play.
Guaranteed "floor" is not automatic
If the policyholder dies while the contract is lost, it compensates for losses … that beneficiaries receive at least the capital invested in the contract by the deceased.Alas, all policyholders are not. It is often not up to a maximum age (75, 80), for a maximum amount (100,000 euros, 300,000 euros …), and sometimes for a specific time (the first ten years after subscription for example). Finally, if it is sometimes offered to the subscriber – the premium to pay for them is included in management fees – we must, in other contracts, have chosen to subscribe … and agree to pay the cost. "To invest in stocks without risks, some purchasers opt for formula funds, together with a capital guarantee at maturity. But beware, for death before that date, the guarantee capital funds committed to this formula, does not play.Paid-up capital to beneficiaries depend on the value of the fund at that time, "warns Armelle Thomas, marketing manager at Natixis Assurances.
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