Life insurance returns in 2026: the complete overview!

The return on life insurance policies in 2026 is attracting keen interest among savers. Buoyed by the rebound in euro funds and inflation falling back below 2%, the French public's favourite investment is getting a bit of a second wind. Between secure euro funds and more dynamic unit-linked funds, what options are available to savers?

In this article, discover the expected performances, the essential selection criteria, and some pointers to help you understand your life insurance in 2026.

Types of investment option

Explaining euro fund and unit-linked investment options

Life insurance policies generally offer two types of investment option:

1. Euro funds:
   • Capital guaranteed by the insurer (subject to its solvency - Sapin 2 law, FGAP guarantee up to €70,000)
   • Declared annual return, never negative
   • Made up mainly of fixed-rate bonds

1. Unit-linked funds (UC):
   • Investment in a range of financial assets (equities, bonds, property)
   • Performance tied to the movement of the financial markets
   • Fluctuating net asset value

Comparing the risks and return potential of euro funds versus unit-linked funds

Euro funds:

• Risk: Low (capital guarantee subject to the insurer's solvency)
• Potential return: Moderate, on average 2.3-2.5% in 2026
• Advantages: Security, stability
• Disadvantages: Limited performance, sensitivity to interest rates

Unit-linked funds:

• Risk: Variable depending on the investment option, possibility of capital loss
• Potential return: High, some unit-linked funds posted close to 20% in 2024 for dynamic profiles (past performance is not a guide to future performance, risk of capital loss)
• Advantages: Diversification, higher performance potential
• Disadvantages: Volatility, potential for losses

For long-term investments, equity or property funds may offer performance potential that differs from that of euro funds, in return for a risk of capital loss. Diversifying across these different investment options helps optimise the return/risk balance of your life insurance policy.

Good to know: The split between euro funds and unit-linked funds is not set in stone. You can change it at any time through switching. Find out how switching within a life insurance policy works so you can adjust your allocation to suit your goals.

The split between euro funds and unit-linked funds should be tailored to the investor's profile, their investment horizon and their risk tolerance. A well-thought-out asset allocation aims to align the expected performance with the level of risk acceptable to the saver.

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Non-contractual document for advertising purposes. Investment in unit-linked investment options carries a risk of capital loss, since their value is subject to upward and downward fluctuations depending in particular on the movement of the financial markets. The insurer guarantees the number of units, not their value, which it does not guarantee. The e-vie life insurance policy is an individual life insurance policy, denominated in euros and/or unit-linked funds, underwritten by Generali Vie, a company governed by the French Insurance Code. Finary SAS — 58 rue de Monceau 75380 Paris 8 — Investment Firm authorised by the ACPR under no. 19283, ORIAS no. 21001279, member of AMAFI

Euro fund returns

Comparing the average return rate of euro funds

The average return on life insurance policies in 2025 reached 2.6%. After a historic low of around 1.3% in 2021, euro funds have gradually rebounded. There is, however, a wide spread across policies: some are capped at 1%, while the best performers exceed 4%.

Over several years, you can see the marked increase in the performance of the various euro funds:

The impact of interest rates on life insurance returns

The rise in interest rates between 2022 and 2023 had a positive impact, especially on euro funds. These funds, made up mainly of fixed-rate bonds with maturities of 2 to 15 years, still benefit from the high-yielding bonds bought at the peak of the rate cycle. Funds that gathered significant capital over this period are at an advantage, because they were able to build a more profitable bond portfolio.

The effect of inflation on life insurance returns in 2025

In 2025, French inflation slowed markedly, coming in at 0.9% as an annual average according to INSEE - one  of the lowest in the eurozone. By the end of the year, it stood at just 0.8% year on year. This disinflation benefited savers: with an average return of 2.6%, euro funds delivered a positive real return of around +1.7% in 2025, thereby regaining their appeal after several difficult years.

You can observe over recent years that very high inflation can erode the real return of most low-risk investments (such as euro funds or savings accounts):

Key takeaway: depending on the period, it can be worthwhile to change your euro fund/UC balance, to take advantage of inflation or recessions.

Comparison table of the main life insurance policies

Here is an overview of the returns of a few life insurance euro funds in 2025:

These figures illustrate the diversity of returns and fees associated with the various life insurance policies. With an average performance of 2.6% in 2025 according to France Assureurs, euro funds far outperform the Livret A, whose rate was lowered to 1.5% since 1 February 2026 — that is, more than a percentage point of difference in favour of life insurance.

Good to know: If you would like to learn more about the differences between life insurance and the Livret A, we recommend reading our article comparing life insurance and the Livret A. There you will find a detailed analysis of the advantages and disadvantages of each savings option.

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With Finary Life: 0 entry, switching or contribution fees. 0.50% annual management fees on unit-linked funds. The management fees of the investment options apply in addition and vary according to the options chosen.

Invest from €300

Non-contractual document for advertising purposes. Investment in unit-linked investment options carries a risk of capital loss, since their value is subject to upward and downward fluctuations depending in particular on the movement of the financial markets. The insurer guarantees the number of units, not their value, which it does not guarantee. The e-vie life insurance policy is an individual life insurance policy, denominated in euros and/or unit-linked funds, underwritten by Generali Vie, a company governed by the French Insurance Code. Finary SAS — 58 rue de Monceau 75380 Paris 8 — Investment Firm authorised by the ACPR under no. 19283, ORIAS no. 21001279, member of AMAFI

Life insurance selection criteria

Factors to consider beyond returns: fees, range of investment options, management options

The return is just one aspect among others to take into account when choosing a life insurance policy. Here are the essential criteria to examine:

1. Fees:
   • Entry fees: some policies do not charge any
   • Management fees: can vary from 0.60% to 4% depending on the policy
   • Switching fees: some policies offer them free of charge
2. Range of investment options:
   • Number and variety of funds offered (ETF, SCPI (a French non-listed real-estate investment fund, comparable to a REIT), thematic funds)
   • Ability to invest in specific assets (private equity, SCPI, structured products)
3. Management options:
   • Self-directed management: for autonomous investors
   • Managed-portfolio service: an alternative for those who prefer to delegate
   • Profiled management: automatic allocation according to the risk profile
4. Insurer strength:
   • Guarantees offered
   • Performance track record
5. Quality and availability of digital services:
   • Ease of carrying out management actions online
   • Portfolio monitoring and analysis tools

The impact of the investment horizon on performance

The investment horizon plays a crucial role in the life insurance investment strategy:

1. Short term (less than 5 years):
   • Euro funds may be suitable for their secure profile
   • Limited exposure to volatile unit-linked funds may be considered
2. Medium term (5 to 10 years):
   • A balance between euro funds and unit-linked funds can be looked at
   • A gradual increase in the UC portion is sometimes considered
3. Long term (more than 10 years):
   • Unit-linked funds can be considered for their performance potential (risk of capital loss)
   • Taking advantage of the smoothing effect on market fluctuations

For long-term investments, equity or property funds may offer performance potential that differs from that of euro funds, in return for a risk of capital loss. Some unit-linked funds posted performances close to 20% in 2024 for dynamic profiles. Past performance is not a guide to future performance and a risk of capital loss exists.

The investment horizon is also reflected in the favourable taxation of life insurance after 8 years of holding. This includes an annual tax allowance of €4,600 (€9,200 for a couple) on capital gains and optimised inheritance tax.

By adjusting the asset allocation according to the investment horizon, the saver can fine-tune the return/risk balance of their life insurance policy, while benefiting from the long-term tax advantages.

Return outlook for the future

Analysis of future trends in euro fund returns

The outlook for euro funds can be analysed as follows in the current context:

• Euro funds still competitive: with an average of 2.6% in 2025, euro funds far outperform inflation (0.9%) and the Livret A (1.5% since February 2026). In this environment, they regain a genuine anchoring role within a portfolio.
• Advantage for funds that gathered capital in 2022-2023: these funds built a bond portfolio at the peak of the rate cycle - an advantage that will persist for several more years, until these bonds reach maturity.
• UC for the long term: beyond euro funds, unit-linked funds remain the performance engine for long horizons, allowing the approach to be adapted to each investor profile.

The portfolio is made up mainly of fixed-rate bonds with maturities of 2 to 15 years — which ensures a degree of visibility on short-term returns.

How to prepare your life insurance portfolio for market fluctuations?

To optimise your life insurance in the face of market developments:

1. Diversification:
   • Spread investments between euro funds and unit-linked funds
   • Vary the asset classes within the UC (equities, bonds, property)
2. Investment horizon:
   • Adapt the unit-linked portion to the available investment timeframe
   • Gradually increase exposure to UC over the long term
3. Keep an eye on fees:
   • Favour policies with no entry fees
   • Opt for low-fee investment options, notably ETFs
4. Performance monitoring:
   • Regularly compare your policy's returns to the market average
   • Consider switching to better-performing funds if necessary

By adopting these strategies, savers can better position their life insurance portfolio. They will face market fluctuations while aligning their strategy with their goals.

In conclusion, the return on life insurance policies in 2026 is developing in a favourable context: with an average of 2.6% for euro funds, life insurance now outperforms the Livret A (1.5% since February 2026) and inflation (0.9%). Choosing a high-performing policy nonetheless requires a thorough analysis of fees, the range of investment options and the management options.

The investment horizon remains a key factor in the investment strategy, influencing the split between secure euro funds and more dynamic unit-linked funds. In the face of economic developments, a diversified approach proves essential.

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