Assurance-vie or death insurance: what are the differences?

According to the French government's public service website, assurance-vie and death insurance contracts "are not the same in nature and have different objectives." Assurance-vie is a savings product: it is used to gradually build up capital. Death insurance is a protection contract: it is used to protect your loved ones in the event of your death, and it does not constitute savings.

This page compares the nature, payment, and roles of the two contracts. It does not address taxation, cost, duration, exclusions, or medical formalities of assurance-vie.

The two contracts in one table

Each line of the table comes from the public service fact sheet "Assurance-vie and death insurance: how to distinguish between them?" (verified on September 25, 2026).

Assurance-vie: building up capital

The sums paid are invested in financial instruments, either in euros or in units of account. The policyholder can withdraw all or part of the capital if needed: on the maturity date stipulated in the contract, or earlier by making withdrawals.

Investments in unit-linked funds carry a risk of capital loss. The glossary on the public service website states: "The invested capital is not guaranteed."«

economie.gouv.fr describes assurance-vie as "a medium- to long-term savings product." This page does not detail how the investment options work. This is covered on a dedicated page explaining how a contract operates.

Assurance-vie: protecting loved ones

Assurance-vie pays a fixed sum to the designated beneficiaries if the insured dies during the period covered by the contract.
The downside is clearly stated in the policy details: if the insured is still alive at the end of the coverage period, no capital is paid out, and the premiums paid remain with the insurer. This contract does not allow for savings accumulation.

Subscriber, insured, beneficiary: three roles to distinguish

Both contracts use the same terms. Service-public defines them as follows:

• the subscriber signs the contract and pays the premiums; ;
• the insured is the person whose death triggers the payment; ;
• the beneficiary is the person designated by the policyholder, who, as the case may be, will receive the capital or the annuity in the event of the insured's death.

In the example of the form, the subscriber is also the insured (the form states "if you die") and his spouse is designated as the beneficiary of both contracts.

Funeral insurance: not to be confused

The information sheet clarifies that a distinction must be made between assurance-vie and funeral insurance. In a "Good to know" section, the public service website indicates that funeral insurance is limited to covering the procedures and costs associated with the funeral.

A contract that combines both: "life and death"«

The public service information sheet on subscribing to a contract distinguishes three forms:

• Assurance-vie "allows you to build up savings over time which will be paid out to you at a specific age"; ;
• Assurance-vie "allows you to provide protection for your loved ones"; ;
• The life and death benefit contract allows you to build up savings over time for yourself or your beneficiaries and to protect your loved ones by ensuring the transfer of capital or the payment of an annuity.

This page compares the first two contracts. The terms of a mixed contract are found within the contract itself; this page does not describe them.

Numerical example (fictitious profile)

The amounts are taken from the example in the service-public fact sheet. The profile is fictitious.

Situation. A parent pays €50 per month into a assurance-vie policy to finance their child's future education, and €10 per month into a death benefit policy. Their spouse is named as the beneficiary of both policies. The death benefit policy provides for a payout of €30,000. The parent dies two years after taking out both policies.

Issue. Both contracts pay out to the same beneficiary, but they do not serve the same purpose. What does the spouse receive, and where does each sum come from?

Strategy. Each contract serves a single purpose. Assurance-vie builds up capital, payment by payment. Death insurance provides a fixed sum of €30,000.

Result.

According to the information sheet, the amount of approximately €1,200 represents all the monthly payments made over two years, less any fees charged by the insurer and plus any accrued interest. It is shown as is, without recalculation. The total of €1,200 in the previous line is simply the product of 24 payments of €50: the two lines are separate.

The spouse receives approximately €31,200 in total (approximately €1,200 + €30,000). The death insurance policy represents 96.2% of this sum, with monthly payments of €240.

Compare this to another outcome. If the insured is alive at the end of the coverage period, no death benefit is paid out, and the premiums paid remain with the insurer. The information sheet does not specify the length of the coverage period in this example. The assurance-vie policyholder, however, can recover all or part of the accumulated capital.

Assumptions: Regular monthly payments over 24 months, as described in the example provided; death occurs within 2 years during the period covered by the assurance-vie policy. Fees and any interest are not recalculated: they are included in the amount shown in the example. No tax implications are modeled. This scenario is hypothetical and does not predict the outcome for your specific situation.

What changes depending on your situation

• What you're looking for. Building up capital, or covering a risk for your loved ones: these are not the same contracts.
• The person to be protected and the capital they would need. A fixed capital is chosen in relation to a specific need.
• The duration for which protection is necessary. At the end of the covered period, no capital is paid out.
• The roles. Who subscribes, who is insured, who is the beneficiary.
• Your other contracts already in place. This page does not describe them.
• Taxation. The public service information sheet refers to articles 990 I and 757 B of the General Tax Code. It does not elaborate on them, and neither does this page.

This page outlines the differences in nature. It does not tell you which contract is right for you. No results are guaranteed.