Today, more and more people are turning to life insurance. It is therefore necessary to inform about the importance of the annual accounts.
An increasingly popular option.
For some time now, we’ve been more open to ways to prepare for retirement. We are also increasingly tempted by savings. Many therefore turn to life insurance. In addition, statistics in 2022 support this claim.
In fact, at the end of last year households have invested 1,842 billion euros in this contract. But it is clear that many people do not yet know the crucial points of this contract. They are, however, disclosed in the annual accounts. Indeed, this document helps us to understand and follow the evolution of our contract.
What should you check on your annual accounts?
First, it is crucial to remember that life insurance is not without cost. That is why it is important to check the management costs every time you receive your annual statement. The rate of the latter is between 0.60 and 1% for euro-denominated funds and charges levied on unit-linked accounts..
Then, apart from the management fee, you must check the performance of the calculation units. The latter are not guaranteed in capital and entail part of the risk. However, the Annual Life Insurance Review allows us to assess the evolution of these investment vehicles from one year to the next. From this we conclude whether our computing units perform better.
Other things you should know about life insurance.
Since the adoption of the Pacte law, life insurance policies contain very valuable information. For example, it takes into account the performance of contracts belonging to the same category and marketed by the same insurer. This allows us to compare this insurance with the other contracts offered by the company.
In addition, if you feel tempted by another offer, you have the right to request the switch to another contract. The only condition is the not very pronounced difference in management fees. Also, it is important to always take a close look at your annual accounts to stay informed of any changes and information.