I’m in the process of buying a new house and I’ve been advised to take a life insurance (3A) for indirect amortisation. I know how badly these products are rated here as an investment, but I find little information about the potential advantages in the context of indirect amortization for real estate.
Here are the numbers for the insurance vs. bank that have been proposed to me :
- life insurance : 6826.-/year, value of 86020.- at 15y in case of contract breakage
- bank : 6826.-/ year at 0.2% interest + insurance at 650.- year (for the same services than life insurance, 200k, constant capital, insurance in case of incapacity) - I’m not sure if the money can be invested in funds (checking…)
In the meantime, since we see ONLY people going for life insurance when buying . I’m frankly reluctant to sign an inflexible 20+ years contract, with little benefits, but my wife has doubts about taking an “original” solution. Moreover, I will most probably be able to refund the mortgage (2nd range) before 15y so what’s the point of a 20+ insurance ?
Any thought ?