Open life insurance instead of Livelet A at the birth of a child

Livret A is a great investment with no risk or tax. However, life insurance is much more profitable in 10 to 20 years. However, beware of disguised donations.

The birth of a child (or grandchild) is a great moment, but 20 years later, how he has enough money to fund research, entry into work, or the first real estate purchase. Can you be sure?

For this reason, “life insurance is a very good birth gift,” said Dominique Trébuchet, managing director of France Mutualiste, which offers a dedicated child contract (see below). Most life insurance is available to minors, but some private insurance makes it easier to manage.

Therefore, you will find a monosupport contract that is 100% invested in a secure Euro fund. Like MIF Project Life (see sheet), it’s a kind of “Super Libre A”, according to Managing Director Olivier Sentis.

A small stream that makes a big river, 18 years later, this parental savings discipline turns into a welcoming little nest egg to start life. The advantage of life insurance over Livret A is that there is no limit on payments.

Long-term investment

Take advantage of the long term to put your child’s money into the financial markets. “Various contracts are very suitable for long-term savings,” said Nicolas Flamebeaux, spokesman for France Mutualiste. For over 20 years, a duo of funds linked to the euro and units could offer much higher returns than Livret A.

In addition, paying contracts on a regular basis does not bear the brunt of rising or falling markets.Strategies you highly recommend income.

Allowances are considered differently depending on the age of the child. “At birth, for example, make a 50% diversified investment on an account-by-account basis,” advises Dominique Trebuchet. For teens who need a kitten within a few years, adopt a more cautious profile. As expected, the contract must be at least eight years old during the withdrawal to benefit from the € 4,600 tax franchise on interest and / or capital gains.

Opening life insurance to children is not only an economic advantage. “It also provides him with a kind of financial education,” adds Nicholas Franbo.

The vision shared by FinTech Zalpha, which launches a ZalphaGen contract offered by Generali Insurance Company (see below) through “an intergenerational app that connects generations from grandparents to grandchildren,” reveals its generaly manager Jérôme Glodas. increase. Very original and, in any case, a pioneering approach to 100% online subscription for children’s contracts.

Parents’ signature

Specifically, only two parents (even if separated or divorced) can sign and manage a contract in the name of their child. Double signature is required for all operations. At the age of 12, your child’s consent is required. At the age of 18, he owns it (see box) unless the “Assistant Agreement” stipulates his exit conditions.

Money belongs to the child as soon as it is paid, Court of Cassation recently recalled (Cass. Civ 2, 26.11.2020, D 19-12.499).. Even if a single parent pays with his own funds, both parties must agree to withdraw. There is no doubt about digging into a contract for your home needs!

Tax notes

Finally, how much can you pay for a minor’s life insurance policy?

If the contract is offered by your parents or grandparents on a particular occasion at a reasonable price according to your estate, you are within the limits of your current use and you do not need to notify the tax authorities. Feel free to write “Merry Christmas” or “Happy Birthday” for the reason for the online transfer.

If you have a large donation, we recommend that you make an official donation and fill out the Cerfa 2735 form. Taxes are only levied every 15 years for more than € 100,000 per child or € 31,865 per grandchild.

Think about the assistant agreement

To prevent wasting life insurance funds when a child grows up, especially if it is a big issue, donation-related agreements, free act under private signature (simple letter) Please think about. Temporary non-invasion clauses (Civil Code Article 900-1) allow you to define conditions for the reuse of funds (investigation, real estate purchases, etc.) and block them until the child is 25 years old. .. ..

Other interests: You can continue to manage the management of funds without parental intervention (Civil Code Article 389-3). A ceremony that is especially popular with grandparents.

Three life contracts undertaken by minors

MIF project life

Insurance company : MIF

payment : 30 euros at the opening. From € 20 per month up to € 360 per person per year (cumulative and extra payments).

cost : 2% fee for payment, 0.6% for management.

Funding : Only MIF Euro funding (+ 1.7% in 2021) (single vehicle contract).

Our opinion. An “improved piggy bank” with guaranteed capital that benefits from the attractive rates of the MIF Euro Fund. Payments from parents and other legitimate relatives of the child (grandparents, godfathers, godfathers, etc.) are per person and 1 to avoid the risk of disguised donations and remain within the scope of this Agreement. It should not exceed 360 euros per year.

Actepargne 2 Young

Insurance company: French reciprocity

payment: 70 euros at the opening. From € 20 per month, or € 100 per semester for scheduled payments.

cost: 0% fee for payments up to € 15,000 and 29 years (more than 2.1%), 0.77% administration fee.

Funds: 10 units account with euro funding (+ 1.31% to + 1.51% in 2021) and free management. Free profile management (4 profiles).

Our opinion. A long-term contract to take advantage of market trends thanks to units linked to the unit while maintaining some security with a euro-denominated fund. France Mutualiste pays up to € 15,000 and does not charge a fee when the child turns 29. When the majority is reached, the contract can be extended to the standard Actepargne 2 contract.

Zalpha Gen

Insurance company: Generali

payment:From € 1,000 or € 500 for € 50 per month.

cost:0% deposit fee, 1.5% management fee.

Funds:A range of funds denominated in euros and funds categorized according to eight themes with free profile management.

Our opinion.One of the first 100% online children’s contracts through an “intergenerational” application that provides several interfaces depending on the target generation: Children’s World for Children Under 12 Years, Teens The world of video games for kids, a classic for kids aged 18-65, simplified for kids aged 65 and over.