What can become 30,000 euros invested in life insurance for ten years? According to a simulation carried out for Capital by the ECP firm via its internal simulatoran investment of 30,000 euroswith a 5% annual return, could reach 45,625 euros at the end of the period. This projection is, however, based on the assumptions used for this simulation, particularly in terms of costs, and does not prejudge the performance that could be obtained with other life insurance contracts.
This result remains above all theoretical. The yield depends on the risk profile of the saver and investment supports selected. A cautious profile, invested mainly in a funds in euros, could prioritize capital security over returns. Conversely, a balanced or dynamic profile, more exposed to units of account, could offer greater performance potential, in return for a higher risk of capital loss. “What will determine a good investment in a life insurance contract are firstly the costs, but also the risk-return couple”explains Habib ATTIK, founder of ECP.
Fees can eat away a significant portion of performance
The displayed return does not always correspond to that actually received by the saver. THE fees on paymentTHE management feesTHE arbitration fees or the costs linked to investment supports can gradually reduce the performance of the contract, an effect which becomes more pronounced with the holding period.
According to Habib ATTIK, payment fees greater than 2% should encourage vigilance. THE management fees would benefit from staying less than 1% per year, or even around 0.60% for the most competitive contracts. For its part, the Financial Markets Authority (AMF) recommends carefully comparing the fees and characteristics of the contracts before any subscription.
Contract allocation directly influences performance
Beyond costs, the choice of investment vehicles is decisive. “It is necessary to verify that the contract is not limited to the euro fund and that it offers a sufficiently diversified allocation according to the risk profile of the investor”underlines the expert.
With an investment horizon of ten yearsit is generally possible to integrate more ETFs,bonds or others units of account in order to seek higher performance potential. According to France Assureurs, the rate used on euro funds stood at 2.6% in 2025. Units of account can offer superior return prospects, but they also expose the saver to a risk of capital loss.
Larger gains can also have a tax impact
Life insurance maintains an attractive tax regime, particularly after eight years detention. At this deadline, a saver can benefit from a annual allowance of 4,600 euros on the winnings withdrawn (9,200 euros for a couple subject to joint taxation). Beyond these amounts, the products may be subject, depending on the case, to the flat rate deduction of 7.5% (under conditions, in particular of outstanding) or 12.8%to which are added the social security contributions of 17.2%.
With an initial capital of 30,000 eurosthe capital gains generated after several years can more easily exceed these reductions. When the situation is suitable, split redemptions over several calendar years can make it possible to benefit several times from the annual deduction and to limit taxation on earnings.
Regular payments reinforce the effect of compound interest
The initial capital invested is not the only driver of performance. Of the scheduled payments allow you to invest progressively while benefiting more from the effect of compound interest. For example, with an initial investment of 30,000 eurossupplemented by 300 euros per month for ten years and one average annual return of 5%the capital could exceed 90,000 eurosexcluding fees and taxes.
