The worst life insurance policies: the 2026 ranking

Updated 31 July 2026

The worst life insurance policies are the bank and traditional life insurance contracts that combine up to 4.85% in entry fees, more than 0.90% in management fees and a euro fund below the market average, put at 2.63% for 2025 by the ACPR. This comparison sets out the policies concerned and the criteria for spotting them.

Key takeaways

• A policy offering fewer than 100 unit-linked funds, with no ETFs and no property vehicles, severely limits your scope for diversification.
• Combining 3% in entry fees with 0.90% in annual management fees can cost more than 20% of your capital over twenty years.
• Online policies charge 0% in entry and switching fees, with euro funds paying up to 3.00% in 2025.
• Predissime 9 Série 2 has been closed to new subscriptions since March 2026, replaced by Oriance and its entry fees capped at 1%.
• Net inflows into life insurance reached €50.6 billion in 2025, a record since 2010 according to France Assureurs.

What makes a life insurance policy a bad one?

Definition and general characteristics

A bad life insurance policy is defined by several factors that damage the performance and the flexibility of your investment. These policies are often sold by traditional banks or insurance companies. They rely on their marketing power and their branch network rather than on the intrinsic quality of their products.

Quality of the investment options

A bad life insurance policy generally offers a limited choice of investment options. In practice that means:

• A restricted number of unit-linked funds
• No modern options such as ETFs or SCPIs (French real estate investment trusts)
• Few management options

That limitation reduces your scope for diversifying and optimising your portfolio.

Euro fund performance

The euro fund, the bedrock of life insurance, is a crucial indicator of a policy's quality. The worst life insurance policies post returns that are consistently below the market average. In 2025, while the average euro fund returned 2.63% according to the ACPR, the least rewarding bancassurance policies stayed at around 2.05%, meaning more than 0.55 percentage point of return lost every year.

How to identify a bad life insurance policy

To spot an unattractive life insurance policy, watch for these warning signs:

1. Entry fees above 2%
2. Annual management fees above 0.80% on the euro fund
3. A euro fund return below the market average over several years
4. Fewer than 100 unit-linked funds available
5. No ETFs and no property vehicles (SCPI, SCI, OPCI)
6. Switching fees above zero
7. Limited management options (no managed portfolio and no mandates)

Keep these criteria in mind and you will be better equipped to avoid the traps of the worst life insurance policies and to choose a stronger policy suited to your needs.

What fees does a life insurance policy charge?

A life insurance policy charges four families of fees: contribution fees, annual management fees, switching fees and the internal fees of the investment options. It is those fees, more than the headline return, that separate the good policies from the bad ones.

Contribution fees

Contribution fees, also called entry fees, are charged on every amount invested. They vary between providers:

• Insurance companies and private banks: up to 4.85% (AXA Arpèges)
• Retail banks: generally between 2% and 4.75% (Crédit Agricole, LCL)
• Online brokers: often 0%

These fees can eat significantly into your capital from the outset. On a €10,000 contribution, fees of 4% mean €400 lost immediately.

Management fees

Management fees are charged annually on the assets held in your policy. They differ by type of investment option:

• On unit-linked funds:
  • Bank policies: 0.70% to 0.96%, up to 0.96% for Société Générale's Séquoia policy
  • Online policies: 0.75% (Boursorama)
• On the euro fund:
  • Bank policies: 0.60% to 0.85% (La Banque Postale Cachemire 2)
  • Online policies: 0.60% (Fortuneo Vie)

These fees look small but they weigh heavily over the long run. A difference of 0.5% a year can amount to thousands of euros over 20 years.

Switching fees

Switching fees apply when you move money between investment options inside the policy:

• Bank policies: up to 0.70% of the amount switched (LCL Vie), and 0.50% beyond the first free switch each year with Millevie Initiale 2
• Online policies: often 0%

Some policies allow a limited number of free switches per year, then charge beyond that.

Other fees to watch

• Managed portfolio fees: for delegated management, which can add up to 0.50% a year
• Investment option fees: charged directly by the asset managers running the unit-linked funds, ranging from 0.20% to over 2% depending on the type of option

These fees are less visible and can considerably reduce your policy's overall performance.

Stacking these different types of fees can seriously erode your capital over the long run. A policy with 3% in entry fees, 0.90% in annual management fees and 0.50% in switching fees can cost you more than 20% of your capital over 20 years, before inflation is even taken into account.

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Examples of life insurance policies at the banks

La Banque Postale (Cachemire 2)

La Banque Postale's Cachemire 2 policy carries relatively high fees:

• Entry fees: up to 3%
• Management fees (unit-linked): 0.85% maximum
• Management fees on the euro fund: 0.85%
• Switching fees: 0%, free and unlimited switches
• Surrender fees: 2.5%

The Cachemire 2 euro fund returned 2.30% in 2025. That is slightly below the market average.

LCL Vie

The LCL Vie policy stands out for fees among the highest on the banking market:

• Entry fees: up to 3.5%
• Management fees (unit-linked): 0.95% maximum
• Management fees on the euro fund: 0.80%
• Switching fees: 0.7% maximum

Its LCL Vie euro fund did, however, deliver a return of 2.55% in 2025, above the market average.

Caisse d'Epargne (Millevie Initiale 2)

Caisse d'Epargne's Millevie Initiale 2 policy has a complex fee structure:

• Entry fees: up to 3.5%
• Management fees (unit-linked): 0.80%
• Management fees on the euro fund: 0.70%
• Switching fees: 0.50%, after one free switch per year
• Surrender fees: up to 5%

The policy's euro fund paid 2.05% in 2025, a base rate identical to that of Caisse d'Épargne's other Millevie policies and well below the market average of 2.63%.

Crédit Agricole (Predissime 9 Série 2)

Crédit Agricole's Predissime 9 Série 2 policy has been closed to new subscriptions since the end of March 2026. Existing holders keep their policy, its tax seniority and the ability to make further contributions, on the following fee schedule:

• Entry fees: up to 3%
• Management fees (unit-linked): 0.85% maximum
• Management fees on the euro fund: 0.60%
• Switching fees: 0.50% maximum

The Predi-Euro euro fund returned 2.15% in 2025, close to the market average.

Since the end of 2025, Crédit Agricole has been distributing the Oriance policy instead, whose entry fees are capped at 1% and brought down to 0% in 2026. A policy closed to new business is rarely a good deal for the person holding it: the insurer no longer has any commercial reason to look after its return.

This comparison highlights how similar contribution fees are across the large traditional banks. LCL stands slightly apart with higher fees, and for comparison, Finary Life charges no contribution fees at all. 

These bank policies differ from one another, but they share common traits. They generally have high fees, a limited range of investment options and euro fund performance often below that of online policies. The performance of the LCL Vie euro fund does show that there can be notable exceptions.

Examples of life insurance policies at the insurance companies

AXA (Arpèges)

AXA's Arpèges policy stands out for particularly high fees:

• Entry fees: up to 4.85%
• Management fees (unit-linked): 0.96%
• Management fees on the euro fund: 0.80%
• Switching fees: 0.80%

The Global Euro euro fund returned 2.25% in 2025, below the market average.

Abeille Assurances (Lucya Abeille)

Unlike AXA, Abeille Assurances offers more competitive fees with its Lucya Abeille policy:

• Entry fees: 0%
• Management fees (unit-linked and euro fund): 0.60%
• Switching fees: 0%

The Abeille Actif Garanti euro fund returned 2.51% in 2025, slightly above the average.

Allianz (La Retraite Allianz 2)

The La Retraite Allianz 2 policy has a high fee structure:

• Entry fees: up to 4.80%
• Management fees (unit-linked): 0.95%
• Management fees on the euro fund: 0.40%
• Switching fees: 1%

The Actif cantonné ASAC euro fund, underwritten by Allianz Vie, paid 2.30% net of management fees in 2025, below the market average of 2.63%.

AG2R (Vivépargne II)

AG2R takes a different approach with its Vivépargne II policy:

• Entry fees: 3% max
• Management fees (unit-linked): 0.80%
• Management fees on the euro fund: 0.62%
• Switching fees: €15 (flat amount)

The Actif général La Mondiale euro fund returned 2.25% in 2025, below the market average.

Comparison of contribution and management fees

This analysis of the worst life insurance policies reveals significant variety in the approaches taken by insurance companies. Some, such as AXA and Allianz, maintain high fees, while others, such as Abeille Assurances, take a more competitive stance.

Euro fund returns also vary, but they generally stay close to or below the market average. Over the long run, every percentage point of fees saved represents thousands of euros of additional savings: fees are a criterion to be assessed over time.

Fewer fees
More capital invested

With Finary Life: 0 entry, switching or contribution fees. 0.50% annual management fees on unit-linked funds. Investment option management fees apply in addition and vary depending on the options chosen.

Invest from €300

Non-contractual document for promotional purposes. Investment in unit-linked vehicles carries a risk of capital loss, since their value is subject to fluctuation, both upwards and downwards, depending in particular on developments in the financial markets. The insurer guarantees the number of unit-linked vehicles and 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 vehicles, 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

Comparison with online brokers

Advantages of online brokers

Online brokers stand clearly apart from traditional banks and insurance companies in several respects:

1. Lower fees: almost systematically no entry or switching fees
2. Simpler management: intuitive online interfaces available 24/7
3. More choice: a wide range of investment options, including ETFs and SCPIs

Those features allow significant optimisation of your savings over the long run.

Examples of strong online brokers

Finary Life

• Entry fees: 0%
• Management fees (unit-linked): 0.50%
• Management fees on the euro fund: 0.75%
• Switching fees: 0%
• Euro fund: Netissima (2025 performance: 3.00%, past performance not guaranteed)

Yomoni Vie

• Entry fees: 0%
• Management fees (unit-linked and euro fund): 0.60%
• Euro fund: Suravenir Opportunités 2 (2025 performance: 3.00%, past performance not guaranteed)

Ramify Vie

• Entry fees: 0%
• Management fees (unit-linked): 0.50% at policy level, meaning 1% to 1.4% all in under managed portfolio
• Management fees on the euro fund: 0.90%
• Switching fees: 0%
• Euro fund: APICIL EURO GARANTI FG 85 (2025 performance: 2.50%)

Boursorama (BoursoVie)

• Entry fees: 0%
• Management fees (unit-linked and euro fund): 0.75%
• Switching fees: 0%
• Euro fund: Euro Exclusif (2025 performance: 3.00%)

Comparison table of fees and performance

This table clearly illustrates the fee advantage held by online brokers. Entry fees are nil and management fees are generally lower than those of traditional banks and insurance companies.

Euro fund performance varies: the Netissima (Finary Life), Suravenir Opportunités 2 (Yomoni) and Euro Exclusif (BoursoVie) funds all paid 3.00% in 2025, which is 0.37 percentage point more than the market average of 2.63% recorded by the ACPR.

Range of investment options

Online brokers generally offer a broader range of investment options. Finary Life, for example, offers more than 700 unit-linked funds, including ETFs, actively managed funds, direct equities and private equity:

• ETFs: allowing diversification at lower cost
• Private equity: to gain exposure to unlisted companies, with a risk of capital loss and reduced liquidity
• Direct equities: for more experienced investors
• Funds and UCITS: more than 500 actively managed funds to complement an ETF allocation

That range allows greater personalisation of the portfolio, tailored to each saver's objectives and risk profile.

The comparison highlights the significant gap between what online brokers offer and what traditional players offer. Lower fees, greater flexibility and the range of investment options make online brokers a serious alternative for savers looking to optimise their life insurance and move towards the best life insurance policies on the market.

How can you avoid a bad life insurance policy?

Three checks are enough before you sign: entry fees at 0%, management fees below 0.80% on unit-linked funds, and a euro fund at least in line with the market average over the past five years. If even one of those three criteria is missing, compare elsewhere.

How to choose a good life insurance policy

1. Look carefully at the fees:
   • Compare policies with no entry fees
   • Look for management fees below 0.80% on unit-linked funds
   • Check the level of switching fees
2. Assess the quality of the investment options:
   • Check that ETFs and SCPIs are available
   • Make sure at least 100 unit-linked funds are available
   • Examine the historical performance of the euro fund
3. Compare the management options:
   • Look for policies offering a managed portfolio
   • Check whether switching mandates are available
4. Look into the insurer's financial strength:
   • Consult the ratings from the rating agencies
   • Check the insurer's performance history

Switching policy: when and how?

Consider switching policy if:

• Your investment horizon is longer than 8 years
• Your current policy shows mediocre performance
• Your policy's fees are significantly higher than the market average

To switch policy:

1. Assess the tax treatment on surrender
2. Compare the advantages of your current policy with those of the new offers
3. Consider a Fourgous transfer if you want to keep your tax seniority

To get a concrete estimate of what you stand to gain, use a life insurance simulator.

The role of investment advisers

A financial adviser can help you:

• Objectively analyse your wealth situation
• Identify the policies best suited to your objectives
• Optimise how your investments are allocated
• Navigate the tax complexities involved in switching policy

One percentage point of fees saved each year means several thousand euros recovered over twenty years. Avoiding the worst life insurance policies comes down to that single discipline: looking at the fees, the depth of the range of investment options and the consistency of the euro fund, before the sales brochure.

The Finary community is full of impartial advice on the best life insurance policies, available free of charge.

Online brokers often offer more attractive alternatives than traditional banks and insurance companies. Do not hesitate to question your current policy and to consider switching if need be.

Ultimately, a well-chosen life insurance policy can help optimise your wealth over the long term, subject to the ups and downs of the markets, starting with the choice of a policy that gives you access to a wide range of options suited to your objectives.

More than 700 investment options
within your reach

Invest in a wide range of unit-linked options: more than 100 ETFs, more than 500 funds, 95 direct equities and private equity.

Invest from €300

Non-contractual document for promotional purposes. Investment in unit-linked vehicles carries a risk of capital loss, since their value is subject to fluctuation, both upwards and downwards, depending in particular on developments in the financial markets. The insurer guarantees the number of unit-linked vehicles and 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 vehicles, 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

Frequently asked questions

Can you switch life insurance policy without losing your tax seniority?

The Fourgous transfer, extended by the Pacte law, lets you move to a more recent policy while keeping the original opening date, but only with the same insurer. Moving to another insurer means surrendering the old policy and starting again from scratch for tax purposes.

What happens to my policy if my life insurance is no longer sold?

A policy closed to new subscriptions stays active for its existing holders: the tax seniority is preserved and further contributions generally remain possible. The insurer, on the other hand, no longer has any commercial interest in looking after its return, which often explains euro funds that stay below the average for years.

Are the entry fees on a bank life insurance policy negotiable?

The rates shown in the general terms are maximums. A partial discount is common for a large contribution or for a customer who already holds other products, but it remains at the adviser's discretion. An online policy with 0% entry fees removes the need to negotiate at all.

Should you close an underperforming life insurance policy more than 8 years old?

Not necessarily. After 8 years, gains withdrawn benefit from an annual allowance of €4,600, or €9,200 for a couple, then from a flat rate of 7.5% up to €150,000 of premiums paid, according to service-public.gouv.fr. Keeping the policy open with a minimal balance preserves that seniority.

How can you find out the actual amount of fees charged on your policy?

The annual statement details the fees charged in euros over the past year, option by option. The Key Information Document provided before subscription shows the recurring costs, including the policy's management fees and the internal fees of the investment options. Both documents should be compared.

Sources

ACPR, Analyses et synthèses no. 180: 2025 revaluation of life insurance and capitalisation policies

France Assureurs: life insurance in 2025, net inflows and assets under management

Service-public.gouv.fr: taxation of income from a life insurance policy

MoneyVox: Oriance replaces Predissime 9 at Crédit Agricole

MoneyVox: 2025 euro fund rates at the BPCE group

ASAC-Fapès: 2025 performance of the Actif cantonné ASAC euro fund underwritten by Allianz Vie

Suravenir: 2025 rates of return on euro funds

Lucya: the Abeille Actif Garanti euro fund and its 2025 return

Ideal Investisseur: fees and return on the AXA Arpèges policy

Ideal Investisseur: fees and return on La Banque Postale's Cachemire 2 policy

Finance Héros: fees and return on Caisse d'Épargne's Millevie Initiale policy

Finance Héros: fees and return on the LCL Vie policy

FranceTransactions: fees and return on AG2R La Mondiale's Vivépargne 2 policy

FranceTransactions: fees and return on the Ramify Vie policy

BoursoBank: fees and euro fund of the BoursoVie policy

Finary: the fees on the Finary Life policy