Evil is in the details. An expression that takes on its full meaning for your life insurance since many costs, hidden in the information documents of your contract, affect the performance of your investment. It is recognized that since June 1, 2022, insurers and distributors of life insurance and retirement savings (PER) plans are required to provide a summary table of discounts made on these products on their website. But it is still necessary to know exactly what we are talking about. That’s the whole point of Boris’ question, who understands absolutely nothing about the nomenclature of the costs involved as he addresses the experts of “Grand rendez-vous de l’épargne” (Capital/Radio Patrimoine) to see what exactly they correspond to. to me.
Highly sensitive to the topic of life insurance costs, Charlotte Thamer, Yomoney’s Managing Director, is happy to enlighten our readers here. And by the specialist’s own admission, “he is not the only one who does not understand the fees charged to his life insurance contract.” Because, unlike the price of a baguette or even real estate, the price charged for your financial investment is not clearly defined. Clearly, the new obligation of insurers to present costs in a coordinated manner, “so that the customer can navigate and possibly compare providers of financial products”, does not solve everything.
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Simply put, you need to think of two main types of fees. First of all, the one-time fee, called the installment fee or entry fee, is paid once when you inject money into your contract. “For example, if it was 2% and you invested 100,000 euros, you would invest 98,000 euros,” Charlotte Thamer explains. It should be noted that these direct debits are not carried out by all players, as online brokers generally do not charge any fees for payment. And when there is an impact, the impact of these piercings remains marginal because it is mitigated for the entire duration of your decade.
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On the contrary, the recurring costs inherent in your investment will have disastrous consequences. “They will affect the contract throughout its life. It is they who will damage your investment over time,” warns our expert. The Yomuni chief mainly mentions three categories of direct religion. First, the “account maintenance costs that accrue to the insurance company. It’s called the management fee and can vary depending on the broker (unit-linked, euro funds, editor’s note) and the insurance company. On average, and each year, 0.96% of the amounts The investor is the one who runs away from you if you have a contract with a traditional bank. The costs related to the method of management are also important, especially if you have opted for delegated (or non-delegated) management.” Up to at least 0%, 0.3% and 1 % at most in some banks”, estimates Charlotte Thamer. Finally, you should not forget about the costs of the asset, i.e. the asset in which you invest (stocks, stock or bond funds, real estate, etc.). These “ongoing” costs affect the performance of your contract .
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Therefore, it is in your best interest to negotiate all these costs, even if it is clear that your interlocutor prefers to agree to a gesture about reimbursement costs, which are less profitable. The expert recalls: “In traditional banks, the average management fee is 0.96%. But they are still 0.6%, on average, with an online broker. And 0.36% lower fees over 10 years, and that makes a huge difference in the performance “. Hence the importance of comparison before concluding a life insurance contract.
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