Assurance-vie upon death: who pays what, article 990 I or article 757 B?

Upon the insured's death, the age at which each premium was paid determines the applicable tax regime. For premiums paid before the insured reached age 70, the levy under Article 990 I applies: a €152,500 allowance per beneficiary, then 20% of the taxable portion up to €700,000, and 31.25% of the taxable portion beyond that. For premiums paid after age 70, inheritance tax (Article 757 B) is levied on the portion exceeding €30,500. For Article 990 I, the beneficiary is liable for the levy.

The decisive criterion: age at the time of each bonus

A single contract can fall under both schemes. Each premium is classified according to the insured's age on the day of payment.

The figures on this page come from the BOFiP versions displayed in force on 16/10/2026.

Premiums paid before age 70: the deduction under Article 990 I

The dejection

Each beneficiary benefits from a tax allowance of €152,500 on death benefits. This allowance applies per beneficiary, not per contract. If the same beneficiary receives multiple contracts, the allocation of the allowance is determined on a case-by-case basis.

The two rates

The levy on each beneficiary's taxable share is:

• 20 % up to €700,000; ;
• 31.25 % beyond.

The €700,000 threshold applies to the taxable portion, that is, after the allowance. Do not add it to the allowance: the BOFiP (French Official Tax Bulletin) does not provide a cumulative limit. The economie.gouv.fr website expresses this threshold differently, as a gross amount ("over €152,500 and up to €700,000"); this page follows the BOFiP.

Those who do not pay

The following are not subject to the levy:

• the surviving spouse; ;
• the PACS partner; ;
• siblings exempt from inheritance tax.

For siblings, the BOFiP refers to articles 796-0 bis and 796-0 ter of the French General Tax Code (CGI). Their exemption is subject to conditions and is examined on a case-by-case basis.

Bonuses paid after age 70: transfer taxes, article 757 B

Premiums paid after the insured's 70th birthday are excluded from Article 990 I. This rule applies to contracts taken out since 20/11/1991. They are subject to inheritance tax for the portion exceeding €30,500.

Three points to clarify:

• The €30,500 allowance is global: it applies to all contracts and all beneficiaries, not to each individual; ;
• It relates to the premiums paid, not to the capital; ;
• The products associated with these bonuses are not taxed.

This last rule matters. A premium paid at age 72 that has increased in value is retained for the amount paid, not for its value at death.

The territoriality of Article 757 B is not addressed on this page. It is examined on a case-by-case basis.

The territoriality of Article 990 I

The levy applies in two cases:

1. the beneficiary is tax resident in France at the time of death, within the meaning of article 4 B of the CGI, and has been so for at least 6 of the 10 previous years; ;
2. or the insured is domiciled in France at the time of death.

The subscriber's place of residence at the time of joining has no bearing on the terms of the contract.

Note: Other government websites use a different definition of residence. They refer to the subscriber's residence. The wording may not be exactly the same. We follow the official tax guidelines (BOFiP). If your family is spread across several countries, this will be verified in your application.

Does an insurer located outside of France change the rule?

No, not solely because of its location. The scope of the levy covers insurance companies established in France and "companies of the same nature that are not established in France." A contract taken out with a Luxembourg insurer is therefore not exempt from Article 990 I simply because the insurer is located abroad. The BOFiP (Official Bulletin of Public Finances) does not mention Luxembourg specifically; it is an application of its general rule.

The payment is due from the beneficiary.

Numerical example (fictitious profile)

Situation. A fictitious policyholder, residing in France, leaves a €600,000 policy to his two children, in equal shares: €300,000 each. All premiums were paid before his 70th birthday. The children have been residents of France for more than 6 years.

Issue. The family believes that the beneficiary clause is sufficient and that no deduction is due.

Strategy. Apply the allowance per beneficiary, then the rate of 20 %. Then check the classification of the premiums: those paid after age 70 follow a different regime.

Result. Taxable share for each child: €300,000 - €152,500 = €147,500. Withholding tax of 20% (%): €29,500 per child, totaling €59,000. The taxable share is less than €700,000: the 31.25% (%) rate does not apply.

Variant on late bonuses. If €100,000 in premiums had been paid after the insured person turned 70, the portion subject to inheritance tax would be €100,000 − €30,500 = €69,500. The calculation of the tax itself depends on each beneficiary's individual circumstances.

CALCULATION: 600,000 ÷ 2 = 300,000; 300,000 − 152,500 = 147,500; 147,500 × 20 % = 29,500; 29,500 × 2 = 59,000; 100,000 − 30,500 = 69,500. The €600,000, the number of children, and the €100,000 in late bonuses are assumptions of the fictitious profile.

What changes depending on your situation

• The insured's age at each payment. He divides the contract between the two regimes.
• The link with the beneficiary. Spouse, civil partner, brother or sister: possible exemption, under certain conditions.
• The home of the insured and the beneficiaries. He decides on the application of the levy.
• The number of contracts and beneficiaries. It determines the use of abatements.

These points are examined on a case-by-case basis. No general rule replaces the examination of your beneficiary clause.