Multi-Support Life Insurance Explained: Euro Funds and Unit-Linked 2026

Introduction: understanding the architecture of a multi-support contract

The multi-support life insurance policy (contrat multisupport) is the most common type of contract in France today. Unlike the single-support contract (monosupport, invested solely in a euro-denominated fund), the multi-support contract allows you to allocate your savings between a secure euro-denominated fund and unit-linked funds (unites de compte, or UC) offering higher return potential in exchange for a risk of capital loss.

In 2024, multi-support contracts account for over 90% of new subscriptions. The total outstanding balance for life insurance in France stands at approximately 1 950 billion euros, of which about 60% is still invested in euro funds and 40% in unit-linked funds, a ratio that shifts further toward unit-linked each year.

This article explains in detail how a multi-support contract works, the mechanisms of the euro fund and unit-linked funds, switching between funds, and allocation strategies tailored to your profile.

The euro fund: the safety pillar

How it works

The euro fund is the secure compartment of a life insurance contract. It operates on two fundamental guarantees:

1. Capital guarantee: the insurer commits to returning at least 100% of the net invested capital (after management fees). Your savings cannot decline.
2. Ratchet effect: interest earned each year is permanently locked in and added to the guaranteed capital. It then generates its own interest in subsequent years.

Composition of the general account

The insurer invests collected funds in what is called the general account (actif general), typically composed of:

• Government and corporate bonds: 60% to 80% (mainly fixed-rate bonds)
• Real estate: 5% to 15% (offices, retail, logistics)
• Equities: 5% to 15%
• Cash and other: 2% to 5%

This very conservative allocation explains why euro fund returns are moderate but steady.

Historical returns

Since 2022, rising interest rates have enabled a clear improvement in euro fund returns, following a decade of continuous decline. The best euro funds now deliver between 3% and 4% in 2024.

Next-generation euro funds

To try to offer better returns, some insurers have created "next-generation" or "dynamic" euro funds:

• Real-estate-heavy euro funds (e.g. Suravenir Opportunites 2, Euro Allocation Long Terme 2): more invested in real estate and equities, with a minimum unit-linked investment requirement (30% to 50%).
• Bonus euro funds: the rate served increases with the proportion of unit-linked funds in the contract. For example, +0.50% if more than 40% in unit-linked, +1% if more than 60%.
• Partial-guarantee euro funds: the guarantee covers only 96% to 98% of the capital, allowing more dynamic asset management.

Unit-linked funds: the performance engine

What is a unit-linked fund?

A unit-linked fund (unite de compte, or UC) is an investment vehicle whose value fluctuates up and down. Unlike the euro fund, the insurer does not guarantee the capital invested in unit-linked funds: it guarantees the number of units, not their value.

Concrete example: if you invest 1 000 EUR in an equity fund when the unit price is 100 EUR, you hold 10 units. If the price rises to 120 EUR, your investment is worth 1 200 EUR. If it drops to 80 EUR, it is worth only 800 EUR.

The different categories of unit-linked funds

Traditional UCITS (investment funds)

These are the most common vehicles. A professional manager selects securities according to a defined strategy:

• Equity funds: invested in shares (France, Europe, global, emerging markets, sector-specific)
• Bond funds: invested in corporate or government bonds
• Diversified funds: a mix of equities and bonds in varying proportions
• Money market funds: invested in short-term instruments, very low risk

Internal fees for these funds range from 1% to 2.5% per year, which weighs on net performance.

ETFs (trackers)

ETFs (Exchange Traded Funds) replicate a stock market index at low cost. Their advantages are significant:

• Very low management fees: 0.10% to 0.50% per year
• Instant diversification (one MSCI World ETF = 1 500 stocks in 23 countries)
• Full transparency on composition
• Historically superior performance to 80-90% of active funds over the long term

Availability: still rarely offered at traditional banks, ETFs are increasingly accessible on online contracts (Linxea Spirit 2, Lucya Cardif, Bourso Vie).

SCPI (Real Estate Investment Companies)

SCPIs allow you to invest in commercial real estate (offices, retail, healthcare, logistics) on a pooled basis. Integrated into a life insurance contract, they offer:

• An attractive return: 4% to 6% per year on average
• Real estate diversification without landlord responsibilities
• The favourable taxation of life insurance (no direct taxation on rental income)

Warning: within a life insurance contract, SCPI rental income is often reduced by 10% to 15% by the insurer, and the contract's management fees apply on top.

SCI and SC (Civil Companies)

SCIs and SCs are collective real estate investment vehicles similar to SCPIs but with more flexibility in their allocation. They are widely used in life insurance contracts.

Examples: SCI Capimmo, SCI Viagenerations, SC Pythagore.

Private equity

Some online contracts now offer private equity funds (investing in unlisted companies). These vehicles offer high return potential but are illiquid and risky.

Examples: Eurazeo Private Value, FCPR Idinvest.

The mechanics of switching

Definition

A switch (arbitrage) is a transfer of savings from one fund to another within the same contract. It allows you to change your allocation without leaving the contract (and therefore without any tax implications).

Types of switches

• One-off switch: you decide to transfer a sum from one fund to another at a given time.
• Scheduled switch: automatic, regular transfer (e.g. 500 EUR per month from the euro fund to a global ETF).
• Gains protection switch: when a fund has gained X%, the profits are automatically transferred to the euro fund.
• Interest reinvestment switch: the annual interest from the euro fund is automatically invested in unit-linked funds.
• Stop-loss switch: if a fund loses X%, the balance is automatically transferred to the euro fund.

Example of intelligent switch use

Nathalie, 55, administrative director, holds 200 000 EUR in her multi-support contract with the following allocation:

• 60% euro fund: 120 000 EUR
• 25% global equity ETF: 50 000 EUR
• 15% SCPI: 30 000 EUR

With retirement in 7 years, she sets up:

• A scheduled monthly switch of 1 000 EUR from equity unit-linked funds to the euro fund (progressive de-risking)
• A gains protection switch at +15% on equity unit-linked funds
• Maintains SCPI holdings for their regular income

This strategy allows her to progressively reduce risk as retirement approaches while maintaining medium-term return potential.

Allocation strategies by profile

Conservative profile (2-5 year horizon or high risk aversion)

• Euro fund: 70% to 85%
• Bond unit-linked funds: 10% to 15%
• SCPI/SCI: 5% to 15%
• Equity unit-linked funds: 0% to 5%

Expected return: 2.5% to 4% per year Maximum loss risk: low (less than 5% in one year)

Typical profile: Jean-Pierre, 63, retiree, who wants to grow his 150 000 EUR savings while preserving capital to supplement his pension.

Balanced profile (5-10 year horizon)

• Euro fund: 40% to 55%
• Bond unit-linked funds: 10% to 15%
• SCPI/SCI: 10% to 20%
• Equity unit-linked funds (diversified funds, ETFs): 20% to 35%

Expected return: 4% to 6% per year Maximum loss risk: moderate (10 to 15% in one year)

Typical profile: Claire, 45, teacher, who is preparing for retirement in 20 years and accepts moderate fluctuations for better returns.

Dynamic profile (10+ year horizon)

• Euro fund: 15% to 30%
• SCPI/SCI: 10% to 20%
• Equity unit-linked funds (global, European, emerging ETFs): 50% to 70%
• Private equity / thematic funds: 0% to 10%

Expected return: 6% to 8% per year Maximum loss risk: high (20 to 30% in one year, but historically always recovered over 10 years)

Typical profile: Thomas, 32, engineer, who invests 500 EUR per month for retirement in 30 years and can afford strong market exposure.

Aggressive profile (15+ year horizon, high risk tolerance)

• Euro fund: 0% to 10%
• Global equity unit-linked funds (ETFs): 70% to 90%
• Thematic/emerging equity unit-linked funds: 10% to 20%
• Private equity: 0% to 10%

Expected return: 7% to 10% per year Maximum loss risk: very high (30 to 40% in one year)

Typical profile: Damien, 28, freelance developer, who has an emergency fund elsewhere and invests his entire life insurance in equities for maximum long-term performance.

Worked example: the impact of allocation over 20 years

Let us compare three different allocations for an initial investment of 30 000 EUR supplemented by 300 EUR/month for 20 years:

The gap is considerable: by choosing a dynamic rather than conservative profile, Emilie, 35, pharmacist, can expect approximately 67 700 EUR in additional capital gains over 20 years, provided she accepts significant fluctuations along the way.

Single-support vs multi-support: is there still a choice to make?

The single-support contract

The single-support contract offers only one fund: the euro fund. It guarantees the capital and delivers a modest annual return. These contracts are virtually no longer marketed today (except for certain old contracts that are still open).

Advantages:

• Absolute simplicity
• 100% capital guarantee
• No management decisions required

Disadvantages:

• Insufficient return to offset inflation over the long term
• No diversification possible
• Often high fees on old contracts

Why multi-support has become the norm

The multi-support contract has become standard because it offers total flexibility:

• You can invest 100% in the euro fund if you wish (it then behaves like a single-support contract)
• You can adjust your allocation over time
• You access diversification that is impossible in a single-support contract

Our advice: even if you are a very conservative saver, open a multi-support contract. You are not required to invest in unit-linked funds immediately, but you will have the option to do so later if your goals evolve.

Constraints to be aware of

Minimum unit-linked investment

More and more insurers require a minimum unit-linked investment on new contributions:

• Suravenir (Linxea Avenir 2): 30% minimum in unit-linked to access the Suravenir Opportunites 2 euro fund
• Spirica (Linxea Spirit 2): no constraint on the standard euro fund
• Generali (Bourso Vie): 25% to 30% minimum in unit-linked depending on promotions

This constraint aims to steer savings toward unit-linked funds (more profitable for the insurer) in a low interest rate environment.

Valuation delays

• Euro fund: daily valuation, operations executed within 24-72 hours
• UCITS/ETFs: daily valuation, switch executed at D+1 or D+2
• SCPI: monthly or quarterly valuation, investment and disinvestment delays of 1 to 3 months
• Private equity: quarterly valuation, very limited liquidity

Fees specific to unit-linked funds

Beyond the contract's management fees (charged by the insurer), each unit-linked fund bears its own internal fees:

• Traditional UCITS: 1% to 2.5% per year
• ETFs: 0.10% to 0.50% per year
• SCPI: 0% additional fees (but distributed income reduced by 10-15%)

The total fees (contract + fund) are an essential criterion when choosing your unit-linked funds.

How to build your allocation in practice

Step 1: Define your investment horizon

The length of time you will not need this money determines the acceptable level of risk. The longer the horizon, the more you can afford to invest in equities.

Step 2: Assess your risk tolerance

Ask yourself this question: if your portfolio lost 20% in one month (i.e. 10 000 EUR on a 50 000 EUR investment), what would you do?

• A) I sell everything immediately -> conservative profile
• B) I am worried but I wait -> balanced profile
• C) I take the opportunity to invest more -> dynamic profile

Step 3: Choose your funds

• For the euro fund: choose a contract with a good euro fund (Spirica, Suravenir Opportunites 2)
• For equities: favour broad ETFs (MSCI World, S&P 500, Stoxx 600) for their low fees
• For real estate: select 2-3 diversified SCPIs or an SCI
• For bonds: a dated bond fund or a bond ETF

Step 4: Rebalance regularly

Once a year, check that your allocation still matches your target. If equities have risen strongly and now represent 60% instead of 40%, switch the excess to the euro fund.

Key takeaways

• A multi-support contract allows you to invest in both the euro fund (guaranteed) and unit-linked funds (not guaranteed but potentially higher-performing)
• The euro fund provides safety through the capital guarantee and ratchet effect
• Unit-linked funds encompass a variety of vehicles: UCITS, ETFs, SCPIs, private equity
• Switches allow you to change your allocation with no tax consequences
• Your allocation should be tailored to your horizon, risk tolerance, and objectives
• ETFs offer the best return-to-fee ratio for the equity component
• Annual rebalancing is recommended to maintain your target allocation
• Even a conservative saver benefits from opening a multi-support contract for its flexibility