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Insurance investments

Assurance-vie, capitalization, PER: the same vehicle, three different uses.

All three are held by an insurer and invested in the same assets. The differences lie in when you can withdraw funds, the tax treatment upon exit, and what your beneficiaries receive. Here are the rules for 2026.

17.2%social security contributions on gains, maintained for assurance-vie and capitalisation in 2026, when other capital income increases to 18.6 % (LFSS 2026).
8 yearsAfter the opening date, redemptions benefit from a tax allowance of €4,600 per year, €9,200 for a couple (article 125-0 A of the CGI).
€70,000guaranteed by the insured and by the insurer by the Personal Insurance Guarantee Fund (FGAP), if the insurer defaults.

Three envelopes

What each one knows how to do better than the other two.

Assurance-vie

Available at any time, she transferred outside of inheritance to the beneficiary you designate: €152,500 tax-free per beneficiary for payments made before age 70 (Article 990 I of the French General Tax Code).

The capitalisation contract

The same taxation applies to buybacks, but it is not resolved upon death : it enters into the succession with its seniority, is given during your lifetime, and can be subscribed by a company.

The insurance-based PER

The payments are deducted from your taxable income ; Savings are reserved for retirement, except for the purchase of a primary residence or in the event of an unforeseen life event. Upon death, they are treated according to the rules of assurance-vie.

Side by side

Availability, tax, death: the differences that decide.

Assurance-vieCapitalizationPER insurance
WithdrawAt any timeAt any timeUpon retirement, except in cases of early withdrawal
At the entranceNo advantageNo advantagePayment deducted from income, up to €37,680 for an employee in 2026
Earnings withdrawn after 8 years€4,600 / €9,200 allowance, then 7.5 % (12.8 % above €150,000 in premiums) + 17.2 %Same rulesPayments taxed according to the progressive tax scale, gains subject to the flat-rate levy
Upon deathOutside of inheritance: €152,500 per beneficiary (990 I), €30,500 after age 70 (757 B)In the succession, without being settled: seniority remains acquiredAssurance-vie rules, according to age at death
SubscriberA personA person or a companyA person

A capital withdrawal from the PER at retirement: the portion from the deducted contributions is taxed according to the income tax scale, the portion of the gains is subject to the flat-rate levy of 12.8 %, plus social security contributions.

The supports

Euro funds and unit-linked funds, in all three envelopes.

The euro fund

Capital is guaranteed by the insurer and the interest accrued each year remains there. Its return depends on the insurer: this is one of the first differences that can be measured between two contracts.

Unit-linked funds

Stocks, bonds, SCPI, Private equity, target-date funds: the value follows that of the underlying assets. Their number and fees vary considerably from one contract to another.

Management

Free, managed, or under mandate: who decides on the trade-offs, and at what cost? Internal trade-offs within the contract do not trigger no tax.

Frequently asked questions

What clients ask us.

Assurance-vie or capitalization contract: which one to open?

To pass on assets to chosen beneficiaries, assurance-vie is excluded from the estate within the limits of Articles 990 I and 757 B of the French General Tax Code (CGI). To pass assets on to your children during your lifetime or to preserve the contract's seniority after your death, consider capitalization: you can give the bare ownership and retain the usufruct.

The two are often combined: capitalization complements assurance-vie once the €152,500 per beneficiary has been used.

Can my company invest its cash reserves in a assurance-vie policy?

No, assurance-vie is reserved for individuals. A company takes out a capitalization contract. For a company subject to corporation tax, a fixed income is taxed annually on the contract (article 238 septies E of the French General Tax Code): it is compared with other cash investments before opening the account.

My contract is old and expensive: can I transfer it without losing its seniority?

Switching to a new contract with the same insurer is possible: your tax seniority is retained (PACTE law of May 22, 2019). Switching to another insurer requires a buyout and reinvestment, which restarts the 8-year period. A thorough review of your contracts will first determine the cost of their fees.

I live abroad: can I keep my French contracts?

Yes, and often by continuing payments. Tax on redemptions and transfers then depends on your country of residence and the tax treaty it has signed with France: our 42 country fact sheets provide them destination by destination.

Submit your statements: we tell you what each contract costs you, and which one to keep.