Assurance-vie: policyholder, insured and beneficiary, the three roles

A assurance-vie contract involves three parties. The policyholder takes out the contract and pays the premiums. The insured is the person whose life is guaranteed by the contract. The beneficiary is the person designated by the policyholder to receive the capital or annuity. Generally, the policyholder is also the insured, but not necessarily: when the contract covers another person, that person must give their written consent.

This page details the three roles, the insured's consent, the specific rules for minors and adults under guardianship, and acceptance by the beneficiary. It does not address capital taxation or fees.

The three roles at a glance

According to the official comparison of the two contracts, three distinct individuals can be covered under both assurance-vie and death insurance policies. The page "Life Insurance or Death Insurance: The Differences" addresses this comparison.

When the policyholder and the insured are two people

If the contract covers the death of someone other than the policyholder, the policy information sheet requires that "that person must give their written consent as the insured.".

In this case, three distinct persons can be named on the contract: a policyholder, an insured party, and one or more beneficiaries. The information sheet does not address the consequences of a lack of consent: it refers to a contract as "validly concluded" when consent is given, without specifying what happens in its absence.

People who cannot be freely insured

The subscription information sheet sets limits according to the insured:

Regarding the penalty, two fact sheets express themselves differently. The fact sheet on subscription states "prohibited" and does not mention nullity. The fact sheet on cases of non-payment of capital states that the law provides, in certain cases, for the nullity of a contract taken out on the life of a minor under 12 years of age or an adult under guardianship. We use each term separately without comparing them. The page "Life Insurance: Cases where the capital is not paid out" addresses this issue.

Designate the beneficiary

The policyholder can designate one or more beneficiaries. The information sheet also mentions that the clause can refer to a will.

The clause can be a standard clause or drafted by the policyholder. The AMF (French Financial Markets Authority) cites a standard clause providing for payment to the spouse, failing that to the children, failing that to the heirs, and indicates that it is also possible to draft the clause oneself (AMF page dated April 6, 2022). Drafting the clause is covered on a separate page: "Beneficiary Clause: Drafting and Amending".

Acceptance by the beneficiary

The central rule is found in the subscription information sheet: "If the person you have designated accepts the beneficiary clause in their favor, this clause becomes irrevocable.".

The consequences, according to the information sheet on modifying the clause:

• As long as the beneficiary has not accepted, the modification is unrestricted and the insurer cannot oppose it; ;
• Once the clause is accepted, the subscriber can no longer change the beneficiary's name without their agreement; ;
• According to this sheet, buybacks or advances then require the agreement of the accepting beneficiary (the date of acceptance counts for the buyback: see below).

Before modifying a clause, the rule applicable to your situation should be checked with the official document and the insurer.

Acceptance and redemption: the date of December 19, 2007

The information sheet on how the contract works distinguishes between two situations:

Roles of the policyholder, the insured, and the beneficiary: a numerical example (fictitious profile)

Situation. Sophie wants to take out a assurance-vie policy on her son Théo, born on March 14, 2015 (hypothetically). The date is October 18, 2026.

Issue. Théo is 11 years old. Is it possible to take out a assurance-vie policy on a minor today, and from what date does the rule change?

Strategy. Apply the 12-year threshold from the official record to the date of birth.

Result.

Assumptions: birth date chosen for the example; 12-year age threshold taken from the service-public.gouv.fr information sheet on subscription; days counted from date to date. Practical details should be verified with the insurer. This profile is not a real customer.

Roles of the policyholder, the insured, and the beneficiary: what changes depending on your situation

• The insured's identity. If the insured is someone other than the policyholder, their written consent is required.
• The insured person's age. Under 12 years old, 12 years old and over (minor's consent and written authorization from their legal representative): the rule differs.
• The status of the clause. Accepted or not: it becomes irrevocable upon acceptance.
• The date of acceptance. Before or since December 19, 2007: the beneficiary's agreement for a redemption depends on this date.
• The number of beneficiaries. One single unit, or several units with capital distribution.
• The contract support. Part of the contract may be invested in units of account, for which the AMF indicates that most do not guarantee the capital invested: the risk of capital loss exists.

These points are examined on a case-by-case basis, according to the contract and the clause. No outcome is guaranteed.