What is an arbitration in a life insurance contract?
Modern multi-support contracts offer investors the choice to invest in stock market, real estate, bond or secure media such as funds in euros.
Life insurance arbitration then makes it possible to go from one support to another without having to carry out a partial withdrawal, thus avoiding the heavy taxation expected in case of redemption before eight years.
Arbitration in a life insurance policy is therefore a transfer transaction that makes it possible to sell the units held in one of the funds for the benefit of another.
Arbitration, a modern management tool for life insurance
Arbitrator between the various supports of his life insurance contract is a very effective management tool to make his investments more efficient. You can take advantage of market opportunities if you know which investment to choose or conversely secure its capital gains by arbitrating at the right time.
This is all the more useful in times of financial crisis as we know it today. The euro-denominated fund can thus constitute a waiting support while allowing to seize opportunities on the markets. To do this, you simply have to make an arbitration on your life insurance by transferring the sums of the support in euros to equity funds.
Some life insurance policies provide for the automatic subscription of certain arbitrations without having to carry out any formality. Convenient when you can not follow your operations closely.
Securing capital gains
This automatic arbitrage provides for securing the results obtained on certain media once they have reached a certain threshold set by the subscriber.
Dynamisation of capital gains
Conversely, this option automatically adjusts the capital gains recorded on the euro medium each year to investments that earn more like equity funds.
These investments can be more profitable if you invest at the right time.
There are obviously other forms of automatic arbitrage on current life insurance contracts.
Pay attention to arbitration fees
Some contracts grant free arbitration annually. For the rest, usually count 1% of the amount transferred, which can eventually cost a lot. On the other hand, check that the manager does not re-charge entry fees on new payments.