Where to invest in 2023 with life insurance?

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Life insurance remains one of the favorite investments of the French, and rightly so! Indeed, this Swiss knife of savings makes it possible to invest in a large number of markets, to place part of one’s capital in a secure investment (the euro fund) and another in riskier but also potentially attractive vehicles (the units of account), all with a particularly advantageous tax framework during the life of the contract with reduced taxation beyond 8 years of ownership (if the outstanding amount, all contracts combined, does not exceed 150,000 euros for a person alone and 300,000 euros for a couple) and even at the time of inheritance.

This wide range of possible investments within the life insurance contract may nevertheless lead the investor to wonder about the best investments to make for the year 2023. In a context of high inflation and rising rates accompanied by of significant volatility on the equity markets, the investor has reason to be disoriented. Certain benchmarks that have been valid over the past decades seem to no longer be relevant. Which assets should be favored in 2023 on your life insurance? In this article, discover three ways to take advantage of the current situation with your life insurance contract.

Take advantage of the rise in euro funds

First, life insurance allows you to position yourself on the bond market with the euro fund. This investment with guaranteed capital, which makes it possible to recover all of the sums paid at any time, is in fact mainly invested in bonds. The performance of the euro fund is variable and cannot be known in advance. However, the average return on this envelope has been falling for more than 20 years with an average for 2020 and 2021 of 1.3%, a rate well below inflation, and even the interest rate displayed by the booklet. A and the LDDS.

However, the situation could change in 2023 due to the increase in key central bank rates, which should have repercussions on the bond market. In addition, insurers could well, to strengthen the attractiveness of the euro fund against the livret A, decide to boost the return of the euro fund in 2022 and 2023. It should be remembered that insurers have the possibility of drawing on the provision for participation to profits, this “fund” which allows them to keep for a maximum of 8 years the profits made thanks to investments other than on the bond market in order to boost the return of the euro fund.

These two factors could well lead to an increase in the yield of the euro fund from 2022 and which could continue in 2023, a first for several decades!

Invest in the equity market via structured products or ETFs

The stock markets were particularly shaken up in 2022 with the very high inflation which, far from being temporary as initially anticipated by the central banks, has become permanent. This inflation by demand due to the post-Covid imbalance and the bottlenecks created by the health crisis, has also been accompanied by inflation by costs, linked to the rise in the price of agricultural raw materials and fossil fuels, due in particular to the war in Ukraine.

This marked and lasting inflation led to a coordinated response from the central banks, which all increased their key rates, more or less quickly and more or less sharply, but the increase was generalized and was often accompanied by a withdrawal of liquidity or quantitative tightening. These two measures should create a slowdown in the economy which will bring down inflation. But this economic slowdown should also create a recession. The challenge will be for central banks to do the right mix so that these measures create a moderate and temporary slowdown and are not the cause of a long and severe recession.

In this context, it may seem difficult to invest in the stock markets in 2023. However, we believe it is essential not to shun this asset class, which has a very attractive return over the long term. It may then be appropriate to turn to structured products on major stock market indices in order to bet on the rise of the underlying over the medium term, while benefiting from (partial) protection of one’s assets. In fact, a structured product is a derivative product which makes it possible to invest in the stock markets (the underlying can be a share, a basket of shares, a stock index, etc.) with a maturity (the product is closed in 10 years for example) and an early redemption mechanism (every year, on the annual determination date, if the price of the underlying is higher than the initial recognition date, the product is recalled and the investor receives a part of the capital gain) and some capital protection (if the product runs to maturity, if the price of the underlying is higher than its price on initial recognition, then the investor receives a part of the capital gain, if the change is nil or slightly negative, of the order of -20%, -30%, or even -40% or -50%, the investor receives his initial investment, if the fall of the price is significant, then the investor suffers a capital loss equal to the fall in the underlying).

This type of derivative product, which allows you to benefit from partial capital protection in exchange for a capped performance, is available on the unit-linked supports of your life insurance policy.

It is also possible for those less risk averse to take advantage of the current economic climate to invest in the major stock market indices and thus position themselves via trackers on the equity market with significant diversification, and at low cost. A very large number of ETFs are generally available on the unit-linked supports of life insurance contracts.

Positioning yourself in the real estate market with performance SCPIs

Finally, in 2023, we can also choose to invest in real estate via our life insurance contract. Sociétés Civils de Placement Immobilier can indeed prove to be interesting in the current context of inflation. First, because real estate is traditionally a safe haven. Even stone-paper, backed by tangible goods, is reassuring. Second, real estate market prices tend to follow inflation, as do rents. Finally, the yield of SCPIs, which is quite high, makes it possible to protect investors’ savings against the erosion of their capital in the face of inflation. Indeed, the ASPIM publishes yields oscillating between 4.5% and 6% in recent years.

SCPIs also have undeniable advantages: strong diversification and pooling of risks, total delegation of property management, and the possibility of positioning themselves in growth sectors such as healthcare real estate (EHPAD, maternity homes, nursing homes, etc.). rest) or real estate linked to last-mile logistics, for example (warehouse located on the outskirts of major cities) via specialized SCPIs. Be careful all the same, here again, these investments available via the unit-linked supports of your life insurance contract are not guaranteed in capital.


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Taxation of redemptions, beneficiary clause, taxation in the event of the holder’s death, allowances during an inheritance, how to recover tax-free gains, intergenerational life insurance, Eckert law and escheat, dismembered beneficiary clause, social security contributions on contracts, death benefit , the different types of management, capital or annuity withdrawal, partial redemption and advances, etc.

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