Maximizing savings through low-risk life insurance options is achievable by choosing euro funds with strong returns. In 2023, fifteen contracts yielded over 2%, with top performers exceeding 3.30%. These include revamped “alternative” and “eurogrowth” funds, which offer free access becoming rarer. While euro funds provide safety, risk-averse investors might consider yield bonuses for investing in riskier assets. Dynamic alternative euro funds can yield over 3%, but often come with strict access conditions. Insurers maintain reserves, ensuring competitive yields.
Maximizing Your Savings with Low-Risk Life Insurance Options
For savers, the dream of earning substantial returns without any market risks is undoubtedly appealing. While it may seem unattainable, there are viable strategies to balance safety and performance. The most straightforward and reliable option is to seek out life insurance contracts that feature euro funds with significantly above-average returns. In 2023, we identified fifteen contracts that boasted yields exceeding 2%, with the top performers reaching over 3.30%. These impressive results have been sustained for at least eight years, providing a solid indicator of the managers’ reliability.
The contracts primarily include “alternative” funds and “eurogrowth” funds, which were revamped in 2020 for better accessibility and understanding. While these innovations come with their own challenges, they are worth considering for savers seeking robust performance.
The Top 15 Life Insurance Policies for Growing Your Savings
With an impressive average yield of 2.80% in 2023 and competitive fees—often negotiable—these fifteen standout contracts, offered by mutual insurance companies and savings associations, represent the pinnacle of euro funds. Most are accessible without any restrictions, making them an attractive choice for investors.
However, free access to euro funds is becoming increasingly rare in the life insurance landscape. This limitation may affect new subscriptions or high deposit amounts, but cautious investors can still find quality insurers like MIF, Maif, and GMF that offer unrestricted access to their euro funds.
It’s essential to exercise caution when selecting euro funds, particularly those that do not guarantee 100% capital protection. For risk-averse investors, staying exclusively with euro funds is the surest way to safeguard their savings, although this often leads to lower returns.
To maximize returns while maintaining a level of security, many insurers offer a yield bonus for those willing to allocate part of their investments into riskier assets like stocks or real estate. The terms vary by insurer, with potential bonus yields ranging from 0.50% to 1.55%, depending on the amount invested in non-guaranteed funds. While this strategy may appeal to some savers, it is crucial to weigh the added risks against the potential rewards.
Alternative euro funds are also available, allowing for more dynamic management of investments. These funds can yield impressive results, sometimes exceeding 3%, but they often come with strict access conditions that may require a portion of the investment to be placed in non-guaranteed supports.
Lastly, it’s worth noting that insurance companies have the option to set aside a portion of their profits each year, creating financial reserves that can stabilize yields over time. Despite the challenges presented by fluctuating markets, many insurers have maintained healthy reserves, enabling them to enhance euro fund rates in the future. This financial cushion ensures that policyholders can continue to benefit from competitive yields in their contracts.