Opinions and advice on this Life Insurance contract

Cashmere Heritage Series 2

Cachemire Patrimoine (Series 2) is the top-of-the-range life insurance policy, insured by CNP Assurances and distributed by La Banque Postale. The entry ticket for the Cachemire Patrimoine 2 contract is €100,000. Like most recent life insurance contracts, Cachemire Patrimoine Series 2 makes it possible to combine several management methods at the same time. However, this is a very marketing presentation. Indeed, the 3 management modes proposed are, in the end, only two. Indeed, the first management mode is “Euro Support”, allowing investment only in the euro fund (which is still possible on many contracts on the market), the second is Free Management (which is the default mode of all contracts), and finally the third is discretionary management. Clearly, Cachemire Patrimoine Series 2 makes it possible to combine free management with management under mandate, which is now offered by all recent life insurance contracts. Management under mandate is only accessible from €50,000. On recent competing contracts, discretionary management is now available for much lower amounts (from 1,000 to 5,000 euros).

  • Free Management : you have a wide range of unit-linked media (approximately 230) representative of UCIs in shares or bonds and real estate media (1 OPCI and 2 SCPI), in order to seek better performance in return for a risk of capital loss. To this range are added one-off offers with temporary supports in units of account (such as structured products with partial protection of the capital at maturity), in order to take advantage of part of the upside potential of the markets within the framework of a controlled risk.
  • Arbitration Mandate : you can benefit from the arbitration mandate from €50,000. You thus delegate the management of your capital while having access to detailed information. A management report is sent to you regularly describing the management policy and the investment choices made by the managers. You thus benefit from the know-how and expertise of Louvre Banque Privée, chosen by CNP Assurances within the framework of the Arbitration Mandate.

Fees on payments that are too high, negotiate!

Even reduced to 2% on this version 2, these installment fees are still too high, so many recent contracts have removed these installment fees. These costs make it possible to constitute part of the remuneration of your intermediary, in this case your financial adviser, part of the management costs of the contract will also be paid back to him. Try to negotiate these installment fees, payment fees reduced to 0.5% are acceptable.

Degressive management fees

This is good news for savers with sufficient assets. Excluding discounts, the management fees on the euro fund are 0.75%, the management fees relating to the units of account are 0.85%. As with the life insurance contracts in the Cachemire range, the management fees can be reduced according to the outstandings on the fund in euros, just like on the units of account. However, to benefit from the rebate on annual management fees, the amount invested must be substantial.

  • Management fees on the euro fund : between 200K€ and 500K€, the management fees drop to 0.60%, beyond 500k€, the management fees on the units are then 0.5%,
  • Unit-linked management fees : between 200K€ and 500K€, the management fees drop to 0.70%, beyond 500k€, the management fees on the units are then 0.6%.

Euro Fund Performance Bonus

This is what motivates many savers! These performance bonuses allocated to the fund in eurosdepending on the exposure of the outstanding amount of the contract on units of account.

Life Insurance Bonuses 2022 offered and conditions Latest published returns, excluding bonuses (7)
Bonuses (1) Financial flows concerned(2) % of contract in Units of Account Total contract amount
% min UC(3) % max CPU(4) Minimum Capital(5) Max Capital(6)

Kashmir Heritage 2

x 1.250 Outstanding statement (annual average of statements made at the end of each quarter) 25% 30% 0€ 5,000,000€ 0.950% Gross PS

0.79% Net PS

x 1,500 Outstanding statement (annual average of statements made at the end of each quarter) 30% 40% 0€ 5,000,000€
x 2,000 Outstanding statement (annual average of statements made at the end of each quarter) 40% 100% 0€ 5,000,000€

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(1) : Yield in basis points to be added to the yield of the euro fund (expressed in %), or bonus calculated according to the yield of the euro fund multiplied by the multiplier coefficient (expressed in the form of a multiplication, for example: x 0.40, to indicate a additional bonus of 40% of the return on the euro fund).

(2) : Indicates whether the performance bonus is accessible via one or more new payments, or if it is accessible only via arbitration, or if it is applicable to all the capital invested in the euro fund concerned, for the conditions indicated (breakdown of the outstanding amount over the units of account). This contast can be carried out by quarter, averaged over the year (case of Generali).

(3) : Minimum allocation to be made of the capital in units of account in order to be eligible for the performance bonus.

(4) : Maximum allocation to be made of the capital in units of account in order to be eligible for the performance bonus.

(5) : Minimum amount of capital to be paid or arbitrated in order to be eligible for the performance bonus.

(5) : Maximum amount of capital eligible for the performance bonus.

(7) : Last return, excluding bonuses, net of management fees and gross of social contributions, and on the next line, this same return net of management fees and net of social contributions.

100% payment possible on the euro fund

This life insurance contract allows you to invest 100% in the euro fund. However, given the management fees relating to the euro fund, and the low yield, the saver has little interest in making such an investment.

Warning : Investments made in units of account present a risk of capital loss, and are not guaranteed by the insurer. Its commitment is limited to the number of units of account held and not to their value. Past performance is not indicative of future performance and is not constant over time.

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