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To compare contracts from life insurance companies, put together a file for each offer: the draft contract, the information notice or the summary box that replaces it, the key information document and the fee schedule. Add information on the investment options you are considering and, for a contract you already hold, the periodic information. This guide concerns life insurance in France. It helps you prepare your questions and find the conditions applicable to each proposal.
“compare company contracts”: documents before taking out a policy
Before signing, the insurer must provide an insurance proposal or a draft contract containing a sample withdrawal letter. It must also provide a key information document or an information document specific to certain financial investment options. Request these documents for each offer and file them separately, indicating which contract and investment options they relate to.
The insurer must also provide an information notice summarising the essential features of the contract and explaining the withdrawal conditions. This notice may be replaced by a summary box on the first page of the draft contract, clearly presenting the essential features. Identify the corresponding document or summary box in each file before starting your detailed review.
Also request the fee schedule and information on the investment options you are considering. If a document is missing or you are unsure about a version, ask your contact for clarification. You can then record your observations in a table, with a column for each offer and a reference to the document consulted.
Read the draft contracts side by side
The proposal identifies the policyholder, the insured person and the beneficiary. It specifies, among other things, the nature and term of the contract, the guarantee offered, the premium payment arrangements, whether there is a right to surrender or transfer, the arrangements for designating the beneficiary and the fees grouped under a single heading.
For each offer, record these details and note the page where you found them. Check that they match your plans: who will be insured, who will be the beneficiary and how would you like to make your payments? If a condition remains unclear, note your question for the insurer rather than assuming that the offers work in the same way.
The beneficiary clause allows you to designate the people who, as applicable, will receive the capital or annuity after the insured person’s death. Review the designation arrangements in each proposal in light of your situation. For a complex situation or the drafting of a will, Service Public recommends seeking advice from a notary.
Also look for references to surrender. A partial surrender allows you to withdraw part of the funds, whereas a full surrender results in the termination of the contract. Note the conditions and fees stated for these transactions in each offer, then ask for explanations of any points you do not understand.
Compare fees by category
Banks, insurance companies and financial institutions that market life insurance contracts must display a standard table on their website grouping fees by category, including opening, management, payment, switching and surrender fees.
Place the fee schedules for the offers side by side, then check the fees in the draft contracts. Note what each fee applies to and the circumstances in which it is charged. A comparison limited to payment fees would leave out other categories worth examining depending on the transactions you are considering.
For example, the AMF describes payment fees as proportional to the amount paid and not charged in every case. It describes switching fees as fees charged when transferring between investment options in a multi-option contract. These descriptions provide reference points for reading the tables; the conditions of each offer must still be checked in its documents.
Examine the investment options and their risks
The key information document is standardised to help compare the products offered. For unit-linked contracts, the insurer must provide detailed information before conclusion about the main features of the selected units and the fees charged on the contract.
The list of available units varies by contract and institution. Compare the documents for the investment options you are actually considering, rather than just the names of the contracts. For each investment option, note its name, the information on its risk and the fees presented, then keep a reference to the corresponding document in your table.
The capital invested in units is not guaranteed. For a euro-denominated investment option, the capital is guaranteed, but, in some contracts, this guarantee is understood to exclude management fees. Check the wording applicable to each offer and ask for an explanation if it does not seem clear to you.
For each unit, the insurer must specify, among other things, performance before and after management fees, the management fees and their period, as well as final performance net of fees. Since 1 January 2025, performance information must cover the last completed financial year and the annualised average over 5 years. Note the period indicated before comparing figures from the documents.
Self-directed management allows you to allocate your savings among the investment options yourself, whereas delegated management involves entrusting this allocation to your intermediary according to a previously determined risk profile. If you are interested in this choice, look for the arrangements offered in each file and ask your contact about the ones you are considering.
If you are reviewing a contract you already hold
The insurer must provide information about the contract each year, including its surrender value, the guaranteed capital and, where applicable, the values of the units, their changes in value and the fees charged. These details help document the position of the contract you hold, in addition to its contractual documents.
For unit-linked contracts, the insurer must also make available at least once a quarter the surrender value, the value and changes in value of the units, and the performance and fees charged for each unit. Keep this information with the contract and note the date to which it relates.
Before comparing them with a new proposal, distinguish what describes your current contract from what appears in another company’s draft. Leave room for outstanding questions: which document specifies the condition you are looking for, what period does a figure relate to and what explanation should you request?
Before deciding
Gather your questions about the conditions, fees, investment options and beneficiaries, then ask each contact for the necessary clarification. The insurer collects information about your situation and must prepare a written record of your requirements and needs, explaining the options in the proposed contract. Keep this record with the other documents so you can review the reasons for the options presented.
This guide helps you prepare a documented comparison; it does not constitute a personalised recommendation. Reading the documents and asking for explanations does not mean taking out a contract.
For further information: Service Public, taking out a life insurance contract and AMF, investing in life insurance.