Taking out life insurance is the preferred type of investment for the French. Indeed, life insurance is used to grow your wealth. Taking out insurance also provides favourable tax treatment for the subscriber or for the beneficiary who may receive the payments at the end of your insurance contract or on your death. Find out all the details on the different benefits of life insurance.
Develop your capital
Life insurance allows you to save over the long term to build up capital. There are two types of contracts on which management can be, depending on the choice of the subscriber, free, delegated or automatic
The mono media contract
It is a contract that aims to invest in bonds to benefit from an annual revaluation. Your capital is always guaranteed with annual interest.
The multi-media contract
It contains, among other things, funds in euros, a euro-growth fund and transferable securities or units of account that will be invested on the French or international financial markets.
Supplement your income with advantageous taxation
Income tax applies at the time of redemption or withdrawal of money. Only interest is subject to taxation. With regard to social security contributions, they depend on investment support. Since 2011, withdrawals from funds in euros under multi-support contracts have been made each year on the capital gains paid. With the 2018 finance law, a flat-rate levy of 30% was created. And as for the life annuity, the tax is levied by adding to it the taxable income and this partially on the amount.
If you need cash, you can ask for advances that will not be taxed. And you also have the possibility of taking out a life annuity, a very advantageous method in terms of taxation.
Optimize the transmission of your assets
The inheritance tax takes into account the beneficiary of the contract. Beneficiaries exempt from inheritance tax are the spouse or partner of PACS. The taxation for the other beneficiaries is treated according to the age of the subscriber at the time of the payment of the premiums.
For payments before age 70
After an allowance of 152,500 euros per beneficiary, a tax of 20% is applied to the paid-up capital not exceeding 700,000 euros. And for a sum over 852,500 euros, the tax is 31.25%.
For payments after 70 years
The inheritance tax on the premiums is 30,500 euros for all beneficiaries. And capital gains are exempt from duty.