Life insurance contracts without administration fees – Savings guide

Costs, the main enemies of investment results

It’s obvious, 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 administration fees, will have plenty of time to see the impact of fees on an investment with a few simulations. It is then that the search for investments at lower costs even becomes a priority goal for some savers. And in this view, the “holy grail” would be one insurance agreement with no fees on payment, no arbitration fees and no administration fees. This seemed unthinkable a few years ago, and yet an offer already exists on the market. We hope others will add to this list.

No payment fees and no administration fees? Really?

If some savers are ready to choose one contract over another for a difference of only 0.05% in administration fees, they are probably not yet aware of the existence of life insurance contract offers that do not impose payment fees or unit-linked contracts Administration fees. It seems confusing a life insurance without management fees (linked to the contract, internal management fees for investment instruments (units of account) are not linked to life insurance contracts). The first question that comes to mind when it comes to a free life insurance contract is how does the distributor get paid? Everyone must live.

Life insurance 2.0: contracts without administration fees

You know now, fromcommitment to transparency about life insurance costseach investment in a unit of account allows the distributor to receive one repayment of outstanding amounts. This fact was “hidden” (or at least not clearly shown) before to savers, it is not anymore. Indeed, this leads to some confusion regarding the stacking of costs in life insurance, such as those practiced via PERs (see average cost of PERs). What really counts for the savings are the costs associated with his life insurance contracts. Internal management fees for investment vehicles do not directly concern them as the published valuation already takes them into account. And yet this is how a life insurance contract can be marketed without directly imposing administration fees on savers. It is the fund management company that pays this commission to the distributors and/or insurance companies. Do you understand why insurance companies are pushing you to invest in billing units? Not only does their insurance business not come into play, the capital of a unit of account is not guaranteed, and furthermore they also receive retrocommissions internal to the fund without this affecting the published results. .

Life insurance contracts without administration fees

Hoping that this list of life insurance contracts with no installment fees and no administration fees will grow over the months. The insurance company CORUM LIFE has set a precedent. It is clear that this troublemaker of CORUM finance, which in particular has delivered the best performance on SCPIs for the last 10 years, has thrown a stone in the pool of insurance companies’ annuities by providing access to investment support at exactly the same price conditions, than when you draw directly. Enough to silence the critics of life insurance costs to invest in SCPI stock.

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

Contracts Insurance company Investor reviews (1) Charges/vers. max. UC administration fees
CORUM SAVINGS
Corum life
CORUM LIFE 3.54/5 (35 reviews) 0.00% 0.000%
The list presented sorted by default by the name of the contract. Non-exhaustive list of market contracts. Selection made on the basis of the criteria specified before the display of the table.

(1): Instant reader votes, 1 vote per contract per reader (IP address) is allowed. Induces nothing on the intrinsic quality of the contracts.

(2): Rate published by insurance companies, excluding administration fees, gross of social contributions.

(3): Net rates for savers, excluding social contributions.

What is the average life insurance cost?

It is quite surprising that savers are willing to pay so many fees. It is clear that the best-selling contracts are the most burdened with fees via the banking networks. A sign that French savers are not paying enough attention to the management of their personal finances.

Costs of life insurance contracts
Costs Minimum Mean Median Maximum
Fees for payments (1)

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

2.16%

2.10%

5.00%

Administration fees on funds in euros

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

0.74%

0.70%

4.00%

Unit-linked management fees

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

0.82%

0.80%

1.90%

Arbitration Fees

0.00%
(80 contracts with 0.00% arbitrage fees)

0.95%

0.50%

15.00%

Expenses for paid annuities (arrears)

0.00%
(198 contracts with fees on paid annuities (arrears) of 0.00%)

0.13%

0.00%

3.00%

The number of life insurance contracts examined is 289, from which these average and median costs have been calculated. The breakdown of contracts is as follows: 32 life insurance contracts in euros (therefore have no unit-linked management fees) and 20 multi-support contracts that do not offer funds in euros (and therefore no management fees on the fund in euros). PEA and PEA-PME insurance contracts as well as capitalization contracts are not included in these calculations.
(1): the fees on payments are negotiable, the calculations are made on the fees specified in the general conditions (there are therefore maximum fees on payments).

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