Stock market crisis: attention, all your life insurance contract is not guaranteed

In full turmoil of the markets, many savers discover that their life insurance is not completely secure. If the funds in euros protect your capital, the units of account, they may undergo heavy losses in the event of Krach.

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It was a small panic wind that has been able to seize a number of holders of life insurance. Donald Trump’s announcement by a massive customs duties on April 2 sparked a stock market marasm whose major world clues are still struggling to get up: after reaching 8,000 points at the end of March, the CAC 40 sailed this Friday, April 18 around 7,200 points. The S&P 500 (the index that brings together the 500 largest American companies) is still decreasing 6% compared to its level in early April.

A crash that many French savers hoped to avoid, in particular by having opted for an a priori secure product, such as life insurance. The favorite product of the French in terms of outstanding (2,000 billion euros) is indeed mainly invested in funds in euros, that is to say on investment media with guaranteed capital, in other words, with which you are guaranteed to always find your bet. More specifically, according to France Insurers, 70% of these 2,000 billion euros are well held in euros funds. But for the remaining 30%, these are account units (UC), supports which present a risk of capital loss.

Actions remain the most efficient placement over the long term

And for good reason: they can for example be invested in equity (but also in bonds, real estate, etc.), and have therefore undergone the fall in stock market indices. If your contract was partly invested in shares via UCs, its performance has probably been displayed in the red for a few weeks. Let us take the example of a fund invested in actions of large French companies (Société Générale – SG Valor Alpha), classified by the Facts & Figures site as the best fund in its category over the last 5 years (with a performance of 13.09% per year), he accused, on April 16, a loss of -10.67% over the past four weeks, according to quantalys.

However, if the surprise of seeing the value of its capital suddenly collapse is certainly very disturbing, it is advisable not to give in to panic. With a long-term investment perspective, actions remain the most efficient placement over the long term, as recalled by the latest IEIF study, over the period 1984-2024. And to protect yourself from future tumble, be aware that there are also options that allow you to limit your risk of life insurance, notably by realling part of your capital to the Euros fund in the event of a fall in your investments.