It means that if you have life insurance you have received it. what ? Annual report pardi. Please take the time to read it. (Credit: © Prostock-studio –stock.adobe.com)
Life insurance policy managers send their annual reports to their customers in the first quarter of the year. A summary of the previous year that provides some valuable information.
If you have not yet received your annual life insurance statement, you will receive it immediately. Banks and insurance companies must always send to their customers in the first quarter of the year. Therefore, by March 31, 2022, all holders of life insurance policies will receive this document. There is something to say, but a summary that is often too fast to put in the trash because you don’t know what important information to consult. Here are six points to analyze carefully.
1. Management fee
Managing life insurance policies includes costs, and the annual report provides a complete picture of what was taken in 2021. Fund management costs, especially in the euro, generally range from 0.60% to 1% and are linked to the unit. Management fee. In the latter case, there are three levels of information. Policy management costs deducted by the insurer, asset management costs, that is, costs deducted from the management company’s unit-linked unit gross returns, and finally, retroactive fees. This is part of the asset management fee passed to the seller, caretaker, or insurance company of the life insurance policy.
2. Euro fund earnings
Multi-support life insurance policies can consist of euro-based funds and account-based. Funding in euros has the peculiarity of being guaranteed by capital. Appeal to many savers, but at the cost of security: Over the years, the revenue of these funds has been exhausted. The sector expects average revenue after deducting management fees in 2021 to be around 1.1%, from which 17.2% of social contributions should be deducted. Differences in yields between insurers can be significant, so we are interested in knowing the interest rates paid this year. In addition, depending on the share of each account included in life insurance, savers may be given significant bonuses.
3. Unit link yield
In contrast to euro funds, account (or UC) units do not benefit from capital guarantees. On the other hand, there is a wide variety of things, and it is possible to diversify assets in terms of both support (stocks, bonds, real estate, etc.) and activity fields (health, technology, environment, etc.). ) Or the geographical sector (France, Europe, the world …). The performance of each accounting unit can vary significantly from year to year, so it is important to acquire shares on a regular basis and arbitrate as needed.
Some account units are based on benchmark indexes such as CAC 40. In this case, the evolution of this indicator should be noted in the annual report for savers. Therefore, the latter can compare the performance of the unit’s fund linked to the unit with the index in question. Enough to emphasize significant discrepancies and make arbitral awards accordingly.
5. Movement history
Regular or regular payments, arbitrations, reimbursement … There are many operations that give rise to life insurance policy movements. The annual report provides a summary. However, keep in mind that this information is not standardized between different managers and it can be difficult to find a way. “A wealth of information kills information,” said Philippe Crevel, president of Cercle del’épargne. And while waiting for the legal framework to improve on this issue, it’s up to the consumer to make their own selections.
6. Performance of other manager contracts
Each manager offers a number of different life insurance policies. With the entry into force of the Agreement Act, insurers will need to specify the performance of each contract compared to the contracts held by the saver. If there are performance gaps, it may be interesting to compare administrative and payment fees for further analysis and change the contract if it turns out to be more interesting.
Also read: Employee Savings: These four valuable information displayed in the annual report