The period of New Year’s gifts and customary presents has just ended and this year again your minor child has been well spoiled. In the inflationary context, you have understood that a diversification of one’s savings is essential… This time, there is no question of paying into the livret A or any regulated passbook which, in view of their poor performance, no longer satisfies you.
Guides you step by step and advises you on a successful wealth strategy!
Now, you would like to choose for this sum of money a financial support commensurate with the generosity of its donors and at the same time, lay the first stone of a lasting financial heritage for your child . Multi-support life insurance responds with flexibility and agility to this project. So, a close-up on the essential points to know:
Taking out life insurance as young as possible is financially optimal .
Parents can take out one or more life insurance contracts in the name of their minor child. If your offspring is over 12 years old, as a subscriber , their agreement will also be requested.
Taking a date on one or more life insurance contracts in his name
will allow him as an adult, in the event of a desired redemption , to benefit from all the tax advantages offered by the tax maturity of the contracts taken out. In fact, after the 8-year period, the capital gains generated on the payments benefit from reduced taxation; in particular, your child will benefit from a renewable annual allowance (every year) of €4,600 if he is single, widowed or divorced or of €9,200 if he is married (or PACS). He will remain liable for social security contributions .
Manage your child’s funds and take advantage of the long-term horizon to invest
in a good euro fund (guaranteed capital), unit-linked supports (unsecured) or real estate assets ( OPCI , SCPI ) (unsecured and risk capital loss), until he reaches majority . You will realize over the years and market opportunities , progressive arbitrations between the different funds and supports.
Make scheduled payments for your child
in order to gradually build up capital for him over the long term (based on reasonable sums, to avoid any disappointment with the tax authorities). Through this, you will invest in stages on the financial markets thus smoothing out negative and positive performances and can expect higher returns than the savings books.
Choose a life insurance policy with reduced entry fees.
Since July 1 , 2022 , insurers have been subject to more transparency in their communication about the fees levied on life insurance contracts and individual retirement savings plans . They are obliged to display all the management fees on their website : an essential aid for choosing the right savings product from the plethoric offer on the market. At Assurancevie. com all our contracts are at reduced costs.
Your child’s life insurance is a durable receptacle for their savings
which allows them to build up capital and can still be mobilized (with the agreement of both parents and except in the case of a pact added to the contract) and without capping limit. The payments made are uncapped , unlike those made on regulated savings accounts such as the Livret A, limited to 22,950 euros .
Supervise the use of the capital of your child’s life insurance
Finally, are you worried that your child will misuse this capital once they reach majority? It is possible to associate the life insurance contract with an additional pact specifying the conditions of its use. For example, it will be possible to mention that the money will be used only to finance studies , the main residence , etc. By inserting a temporary inalienability clause in the attached pact , you can block withdrawals until your child is 25 years old.