Life Insurance with ETFs: Take Action Now

An ETF held within a life insurance policy functions as a unit of account (UA) among the policy’s other investment vehicles, with no guarantee of performance.

• Unlike a PEA, life insurance provides access to global ETFs without geographic restrictions or contribution limits.
• Total fees (contract management fees + ETF internal fees) range from 0.40% to over 1%, depending on the insurer.
• Since the 2026 Social Security Financing Act (LFSS), social security contributions on PEA accounts have risen to 18.6%, while those on life insurance policies remain at 17.2%—a clear advantage for the latter.
• The choice of contract—particularly its open architecture—directly determines the number of ETFs available.

How does an ETF work within a life insurance policy?

In a multi-asset life insurance policy, an ETF is listed as one of several investment options (along with stocks, bonds, and real estate investment trusts). It functions like any traditional ETF (index tracking, passive management, low fees), but it is held by the insurer on behalf of the policyholder within the policy’s tax-advantaged framework.

Access to ETFs depends directly on the structure of the contract:

• An open-architecture contract provides access to dozens, or even hundreds, of funds from different asset management companies;
• A closed-end contract limits the choice to only the insurer’s or bank’s “in-house” funds.

Life Insurance or PEA: What Are the Differences When Investing in ETFs?

PEA: A Limited Investment Universe and Cap on Contributions

The PEA is the most tax-advantaged investment vehicle for European stocks and ETFs, but its scope is limited: only funds that invest at least 75% in securities from the European Union are eligible, which excludes a large portion of physically replicated global ETFs. 

Life insurance, on the other hand, provides access to a global market with no geographic restrictions, featuring equity, bond, and sector-specific ETFs from all regions.

The PEA caps contributions at €150,000 (€225,000 for a PEA-PME), whereas life insurance has no cap.

Social Security Contributions: Life Insurance Benefit

On the tax front, a recent change warrants attention: the 2026 Social Security Finance Act has created a discrepancy between the two budgets. Social security contributions on PEA accounts have risen to 18.6%, while those on life insurance policies have remained at 17.2%. Life insurance now has a clear tax advantage in this regard, whereas the two tax brackets had been aligned until now.

Fees: The Factor That Makes All the Difference

Investing in ETFs through a life insurance policy involves two levels of fees:

• contract management fees for unit-linked policies (0.30% to 0.60%, depending on the insurer);
• the ETF's internal expenses ( 0.05% to 0.40%, depending on the fund).

For example, an Amundi Core MSCI World ETF with an internal expense ratio of 0.12%, held in an account that charges a 0.30% unit fee, results in a total cost of 0.42% per year. The same ETF in an account that charges a 0.50% unit fee comes to 0.62% (source).

This difference, which may seem small at first glance, grows significantly over time. For an initial investment of €20,000 yielding a 6% gross annual return over 20 years, a 1.2-point difference in fees results in a difference of nearly €9,000 at the end of the period.

Which ETFs should you choose for your life insurance policy?

The choice depends on the investment universe offered by the contract, which varies significantly from one insurer to another. The most commonly included ETFs include a global ETF (MSCI World or ACWI), an S&P 500 ETF for exposure to the U.S. market, and possibly an emerging markets ETF as a supplement.

Three selection criteria take precedence: 

• the fund's assets under management, with a minimum of several hundred million euros set aside for liquidity;
• the TER;
• the issuer (Amundi, iShares, Vanguard, and BNP Paribas Easy, among the most established).

One thing to keep in mind: the ETFs listed vary by policy, and even an ETF mentioned in a guide may have been removed from a particular insurer’s offerings. It is therefore important to check the updated list of available investment options before making any decisions.

Raizers provides access to a selection of ETFs within Generali’s open-architecture life insurance policy, chosen based on quality criteria (fees, assets under management, tracking accuracy) rather than an exhaustive catalog that would be difficult to evaluate on one’s own.