Life insurance vs PEA vs CTO: where to invest your money in 2026?
In 2026, faced with the diversity of available savings products, choosing the right investment can be complex, especially for beginners. Life insurance, Equity Savings Plan (PEA) or Ordinary Securities Account (CTO): each offers advantages, taxation constraints, and different risk profiles. To guide your choice, this comprehensive guide offers a clear and quantified comparison of these three flagship solutions, adapted to different wealth objectives.
Life insurance: the flexible and tax-advantaged solution
Life insurance remains one of the favorite investments of the French, with more than 1,800 billion euros in assets at the end of 2025. This savings product allows investing in secure euro funds or more dynamic unit-linked funds. In 2026, the average fees on life insurance contracts amount to about 1.5% per year (management fees), with entry fees often reduced or even waived depending on the insurers.
From a taxation perspective, life insurance is particularly attractive after 8 years of holding: capital gains benefit from an annual allowance of €4,600 for a single person (€9,200 for a couple) and are taxed at the flat tax (PFU) rate of 12.8%, to which 17.2% social contributions are added. This advantageous taxation is a powerful lever for those looking to prepare for retirement or transfer capital.
Finally, life insurance offers great flexibility: partial withdrawals possible without closure, choice between secure and dynamic funds, and inheritance benefits. It is an excellent compromise to diversify one’s assets while limiting risks.