Life insurance: these billing units that can increase the performance of your multi-support contract tenfold

Posted January 25, 2023, 7:08 am

How to thwart the pitfalls of behavioral finance, which, as we know, consists of investing in the stock market at the sound of the bugle and selling at the sound of the cannon, when the opposite is what should be done? “Taking a step back and remembering that life insurance, subject to offering relevant diversified support, remains the envelope best suited to upgrade risk-taking while controlling taxation”, advises Thibaut Cossenet, Director of Savings and Patrimonial – the offer in Le Konservatørgruppe.

Based on this basis, several options emerge in the current turbulent context, among which four paths seem particularly relevant.

UC bonds, a field to explore

From a complex approach, the bond sector, which experienced a crash last year (the sudden rise in interest rates had the mechanical effect of sharply devaluing the securities already in the portfolio), is undeniably regaining its attractiveness. “You can inject 10% to 15% bond units (UA) into your contract with the aim of keeping them for the long term and achieving a return of 3 or 4% over five years,” says Stefan of Quelen, managing director of Meilleurtaux Placering.

This observation is particularly valid for private loans, subject to, as Karl Toussaint du Wast, co-founder of Netinvestment, emphasizes, “identifying them carefully and sorting them according to the risk of default they present, knowing that the bonds ‘investment grade’ will offer in return for their more protective nature a lower income, as opposed to ‘high yield’ which is more profitable and riskier”.

To optimize this bond pocket, Edouard Michot, founder of, therefore recommends placing “as a priority on diversified funds such as Dorval Global Convictions Patrimoine RC or even on dated funds”.

Many professionals agree on the relevance of this last category of support, which, on the basis of an investment period that is known in advance (generally between four and six years), makes it possible to “take advantage of the increase in rates within a clear framework, with a stated target for returns and a moderate level of risk due to significant portfolio diversification,” sums up Yves Conan, CEO of Linxea.


Name of the foundation: Edmond de Rothschild 2028 Objective

Fund-specific administration fee: 0.90%

Performance target: 4.1% annual return (net of fund management fees) by 2028

Example of contract proposing it: RES Multisupport (until March 13, 2023)

Distributor: Macsf Network

Insurance company: Macsf Pensionsopparing

Fees for payments: 0% (commercial offer, otherwise 1%)

Administration fee: 0.5%

Monetary UC, a profitable downturn

Low-volatility and highly liquid money market funds, which have seen their benchmark rate fall in a matter of months from -0.5% to 2%, could “gain another 100 basis points over the course of the year,” estimates Jean-Patrice Prudhomme, director of allocation- and the management division at Milleis Banque. Money market unit-linked entities, fully resuming their role as treasury instruments, are nonetheless struggling to convince wealth management professionals of their relevance in life insurance.

“This kind of support is only valid from the perspective of a redistribution of its capital in the short or medium term”, judge Yves Conan. “The rates served must at least cover the management fees of the fund and the contract”, adds Stefan de Quelen, who nevertheless declares himself alert “to the development of the money markets in the coming months”.


Fund name: AXA Court Terme A

Administration fee: 0.07%

Performance objective: net of actual management fees, to outperform the capitalized €RSTR (euro short term rate) index over a recommended minimum investment horizon of one month, taking into account a socially responsible investment approach

Example of contract referring to it: Meilleurtaux LibertéVie

Distributor: MeilleurtauxPlacement

Insurance company: Spirica

Payment fees: 0%

Administration fee: 0.5%

Structured products, options

Structured funds are designed to generate performance while protecting the original capital invested. Marketed for a limited period (from a few weeks to several months), these offers, which skillfully combine the purchase of fixed income products (capital protection) with the selection of options (performance booster), take advantage of both the interest rate rises for their safe part and stock market volatility for their optional component.

Result: there are currently promises of annual returns of 3% to 6% (or even more) depending on the more or less protective nature of the offer. And as Stefan de Quelen points out: “Products with 100% guaranteed capital are making a comeback after disappearing in recent years. »

However, as attractive as they are, structured funds require caveats. Their complex management methods, costly in hard-to-read management fees, remain potentially synonymous with price losses in the event of premature redemption. It is therefore important to clearly identify the structure of the proposed offer before subscription, in particular by identifying its duration, the underlying of the arrangement (often an EMTN – Euro Medium Term Note -, a debt security similar to a bond), the referent of the promise of profit (simple or reworked stock market index, single security or basket of values, etc.) and, when they exist (this is the case with autocall funds), expected conditions for opening redemption windows.


Foundation name: Primo Sérénité (subscription until February 10)

Fund-specific management fees: NC

Performance Objective: product indexed to the iTraxx® Europe Series 38 Version 1 Index, which targets an annual contingent coupon of 3.35%

Capital 100% guaranteed at maturity (seven years)

Example contract that suggests it: Target +

Dealer: Primonial

Insurance company: Oradea Vie (Société Générale Assurances)

Fees on payments: 4% maximum (minimum payment 10,000 euros)

Administration fee: 0.98%

Private equity, the selection is crucial

In terms of risk, the non-listed companies, which have continued to gain popularity in recent years in the context of life insurance, offer long-term (eight to ten year minimum mobilization recommended) high performance potential related to the vicissitudes of the stock market (+ 14.5% annual average return over ten years for French private equity at the end of 2021 and +12.2% over fifteen years, according to data from France Invest). “The objective of real assets is to provide protection against inflation along with more volatile financial investments”, affirms Jean-Patrice Prudhomme.

However, the rise in interest rates requires greater caution in the selection of funds offered, as certain underlying values ​​are likely to suffer under the new financial configuration. “We favor growth capital strategies that target slightly more mature companies, in a growth acceleration phase, and that fall within one of the following three themes: digital, smart health and environmental innovation”, says Jean-David Haas, CEO of NextStage AM, if the NextStage Croissance offer, created seven years ago, “should benefit from performances supported by divestments in the next twenty-four to thirty-six months”.

Generally, going through UCs located in units of FCPR (venture investment funds containing at least 50% of unlisted assets) or, more rarely, professional funds (FPS, FPCI, FPVG with an entry ticket of minimum 100,000 euros), private equity is promoted the offers. within the framework of multimedia therefore more than ever require to be perceived in their reality: long-term diversification alternatives reserved for an informed public covering several forms of capital investment (innovation, development, transmission, etc.), highly varied sectoral equity investments whose share must not constitute more than 10% of the dynamic part of a contract.


Name of the fund: FCPR Eiffel Infrastructures Vertes

Fund-specific management fee: 2.75%

Performance target: between 4% and 5% net over a recommended period of at least five years

Example of contract suggesting it: Linxea Avenir 2

Dealer: Linxea

Insurance company: Suravenir

Payment fees: 0%

Administration fee: 0.6%

> Real estate, taxes, pension, life insurance, stock market, bank books, art market… To always be on the cutting edge of wealth and investment news, subscribe to our newsletter > Sign Up

Leave a Comment