Life insurance: 2025, the year of the comeback? Our advice to take advantage of it

Life insurance starts 2025 on wheel hats, with a collection at the highest for fifteen years. A trend analyzed by the guests of the “big savings meeting” (capital / radio heritage) to help you make the right choices this year.

Capital video: GRDVE 2 – February

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Life insurance returns to the front of the stage. After years of disaffection due to low yields, then competition from regulated booklets (booklet A, LDDS, LEP), the favorite placement of French in terms of outstanding (nearly 2,000 billion euros) finished 2024 in fanfare with a net collection (payments – withdrawals) of 30 billion euros: it is necessary to go back to 2010 to find such a harvest.

In this new issue of the “Great Savings Rendez-vous” (Capital / Radio Patrimoine), our experts decrypt this comeback. Alexis Trigaut, Partner, Vie and Retirement Commercial Director for the Corum group, and Stéphane Van Huffel, president of SVH Conseil, return to the benefits of life insurance for savers, and to his prospects for the year 2025.

Why is life insurance remains essential for savers?

Advantageous taxation, flexibility, transmission tool: life insurance checks all the plans of placement par excellence. “Heritage management without life insurance contract is not possible”, Stéphane Van Huffel, president of SVH Conseil. This savings product offers possibilities adapted to all situations, whether it is to protect its capital, to save in the long term or to organize its succession: “It’s a real Swiss knife”adds this wealth management expert.

In an uncertain economic context, life insurance also reassures savers, thanks to its capital guaranteed in capital, funds in euros, investment media on which they are guaranteed to always be able to recover the deposited savings. As a bonus, unlike regulated booklets, therefore rates were highly planed on February 1 (that of booklet A fell 3% to 2.4%), yield yields seem to remain stable: average remuneration is expected to 2.5% in 2024, very slightly decreases compared to 2023 (2.6%).

Yields that are around or exceed 4% for the best contracts

If life insurance seduces again, it is notably thanks to its renewed performance. After years of yields at half mast (1.3% in 2020 and 2021), certain contracts now have more than 4%, and even up to 4.65% for the life insurance product of the Corum group (Corum Euro Life) in 2024. A performance which is partly explained by the youth of euros funds which can be at the top of the 2024 yield ranking. Large companies. Those who have been launched over the past two years have therefore been able to take full advantage of the rise in bond rates, a consequence of the increase in guiding rates enacted by central banks to slow down inflation.

Hence a concern: will this return to grace of life insurance last? A decline in inflation requires, the European Central Bank (ECB) regularly has dropped its key rates since June 2024, with a fear of 2025 Euros funds at the key. However, our experts temperate this concern: “Euros funds have not yet suffered the impact of the drop in rates. When the key rates go up, the yields of the euros funds take time to go up, they will therefore also take time to reburate ”estimates Stéphane Van Huffel. This without counting “That bond rates, for example French bonds at 10 years old, remain for the moment at the same level as at the end of 2023. The horizon is therefore still very favorable to maintain performance”, Pointe Alexis Trigaut, Partner, Vie and Retirement Commercial Director for the Corum group.

Moreover, “Euros funds are not only made up of rate products, such as bonds. There is a diversified part that keeps performance even when guiding rates, and therefore bond yields, come to decrease ”recalls Alexis Trigaut. Corum, for example, relies on real estate and high -efficiency obligations to diversify its euros fund: “The advantage of real estate is that it is long time: once you have a high yield, we take it for a long time”, Add this specialist.

Your questions, our answers

In the “Your Questions, our answers” section, our experts answer your questions about your money. “What is the legal deadline for a life insurance repurchase?”, “Can I withdraw on my 10 year old PEL without closing it?”, “How can I know if I am appointed as heir?”. Send us your questions to: [email protected], and we will answer it in a future issue of the “big savings meeting”.