French assurance-vie

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«Alexis, I have savings sitting idle in my Livret A savings account, but with inflation, I’m losing purchasing power. People are talking to me about assurance-vie, but I don’t want to tie up my money for 8 years. Is it really the "Swiss Army knife" everyone’s talking about?»

This question is the starting point for many of the strategies we build at Balmont Conseil. In France, assurance-vie is not simply a financial product; it is a true institution worth more than 1,900 billion euros.

Balmont Conseil's mission, with its AI-powered wealth management expertise, is to help you navigate this complex landscape and transform a tax-efficient investment vehicle into a growth engine for your projects. Whether you're planning for retirement, protecting your loved ones, or optimizing your estate planning, French assurance-vie offers unparalleled flexibility. 

Personalized analysis

What is French assurance-vie and how does it work?

Assurance-vie is a financial investment in the medium and long term. Contrary to a persistent misconception, your money is never locked up. You can perform a partial buyout or a total buyout at any time.

High liquidity: Contrary to popular belief, your money remains available. The term "insurance" does not mean that the funds are locked until death; you can make withdrawals. buyouts (partial or total) at any time to meet a cash flow need.

The contract mechanism: A protective framework

The contract is based on a three-way relationship between the insurer, the insured, and the beneficiaries. This structure allows for exceptional tax treatment on inheritance (a tax allowance of €152,500 per beneficiary on sums paid before age 70).

Single-support vs. Multi-support: Choosing a strategy

  • Single-premium assurance-vie: Historically invested 100% in % on the euro funds. While it offers a full capital guarantee, its current returns often struggle to keep pace with inflation. It is now being abandoned in favor of more dynamic strategies.
  • Multi-support assurance-vie: It's the market standard. It allows you to manage your risk level:
    1. The euro fund: For the security pocket and the capital guarantee.
    2. Units of Account (UC): To capture market growth through stocks, bonds, SCPIs (real estate investment trusts) or private equity. Here, the insurer guarantees the number of units, but not their value, which fluctuates according to the markets.

    • The beneficiary clause: A tailor-made inheritance planning tool

    This is one of the contract's most powerful features. It allows you to designate precisely who will receive the capital in the event of your death, with almost complete freedom, while keeping it "outside the estate." This is a unique legal and tax advantage in France.

    Balmont's opinion: Don't think of assurance-vie as just a savings account. Its strength lies in the diversification of investment units. A well-managed contract is one that knows how to combine the security of the euro fund with the long-term performance of the real economy.

    The two driving forces behind your contract: Euro Fund and Unit-Linked Funds

    To choose the right contract, you need to understand what's "under the hood".

    The Euro Fund: Security first

    THE euro funds is the historical asset. The insurer guarantees the capital: you cannot lose your initial investment.

    • Euro fund returns: After a period of low interest rates, returns have rebounded. In 2024-2025, the best funds are showing between 2.50 % and 4 % (depending on collection bonuses).
    • Ratchet effect: The interest generated each year is permanently acquired.

    Units of Account: The engine of performance

    THE units of account represent a diversification of investments. Unlike euro funds, their value fluctuates both upwards and downwards depending on the financial markets.

    • Investment vehicles: You have access to equity funds, SCPIs (real estate), ETFs (trackers) or even thematic funds (artificial intelligence, energy transition).
    • Financial risk: The insurer guarantees the number of shares, but not their value.

    Tax and estate planning advantages: Why is it unbeatable?

    Taxation is the main argument for assurance-vie in France. It is assessed in two ways: during the life of the contract and at the time of inheritance.

    A decreasing tax rate on gains

    The "tax clock" starts from the day of signing. The older the contract, the less tax is levied on gains upon withdrawal.

  • Before age 8: The gains are subject to the PFU (Single Flat-Rate Levy) of 30 % (12.8 % of tax and 17.2 % of social security contributions).
  • After 8 years: You benefit from annual tax allowances on gains (€4,600 for a single person, €9,200 for a couple). Beyond that, the tax rate drops to 7.5% (plus social security contributions).

    • An exceptional wealth transfer tool

    Assurance-vie is considered "outside the estate". It allows you to pass on capital to whomever you want (even without a family relationship) with very low taxation.

  • For payments made before age 70: Each beneficiary can receive up to €152,500 tax-free.
  • After 70 years The allowance increases to €30,500 for all beneficiaries, but the interest generated by these premiums is totally exempt.

    • Management methods: How to manage your contract?

    Not everyone is a financial expert. Assurance-vie offers... wealth management options tailored to each profile.

    Self-Management: For customized control

    You are in complete control. You select your investment units and make your own allocations between euro funds and riskier investments.

  • Advantage : Total freedom and savings on delegated management fees.
  • Profile : Ideal for sophisticated investors who wish to include specific assets (real estate investment trusts, individual stocks, ETFs) or who benefit from the advice of their consultant. Balmont.

    • Managed (or Profiled) Investment: Turnkey peace of mind

    You delegate the management to a specialist company that arbitrates the portfolio according to a risk profile defined together (Conservative, Balanced, Dynamic).

  • Mechanism: In the event of market volatility, experts automatically rebalance your contract to match your risk profile.
  • Profile : The optimal solution for those who wish to boost their savings without dedicating daily time to it.

    • Discretionary Portfolio Management: The luxury of personalization

    Formerly reserved for private wealth management, it is becoming more accessible. A professional manager makes personalized investment decisions for your contract.

  • The best part: You gain access to institutional strategies and maximum responsiveness to market opportunities.
  • Threshold : Generally available from €10,000 to €50,000 depending on the contracts selected by our firm.

    • Balmont Conseil's opinion:

    The best investment strategy is the one that gives you peace of mind. We often recommend starting with managed accounts for your core portfolio and keeping a portion under free management for your personal investment preferences.

    How to choose the best assurance-vie? Selection criteria

    At Balmont Conseil, we analyze dozens of contracts according to strict assurance-vie selection criteria for our clients.

    Expenses: The number one enemy of performance

    • Fees on payment: Avoid them. The best contracts (especially the online brokers) display 0 % entry fee.
    • Management fees: They must be between 0.5 % and 0.8 % per year.
    • Arbitration fees: Opt for contracts where they are free.

    The quality of the financial offer

    A good contract should offer an open architecture, meaning a wide choice of investment units from different management companies, and not just those from the bank that sells you the contract.

    Performance History

    Although past performance is not indicative of future results, the historical performance of the euro fund over the last 5 years is an indicator of the insurer's strength.

    Overview of key players and specific offerings

    The assurance-vie market is saturated with offers, but the quality of advice and net performance depend primarily on the business model of the chosen provider. Here's how to navigate it.

    Traditional Banks: Proximity at a High Price

    They benefit from a significant amount of trust, but their contracts are rarely the most competitive.

    • Weak points: Entry and deposit fees are often high (sometimes up to 3-5%). The range of unit-linked funds is generally limited to in-house funds, which restricts diversification.
    • Audience : Savers seeking centralization of their accounts, at the expense of pure performance.

    Mutuals and specialist insurers: The strength of the euro fund

    Players like MACSF or GMF manage massive assets and have historically offered some of the most robust euro funds on the market.

    • Key features: Prudent management and fees that are often more reasonable than in traditional banking networks.
    • Boundaries : A financial offering (stocks, real estate) that is sometimes less dynamic and a lack of flexibility in online management tools.

    Online Brokers and "Pure Players": Pricing Efficiency

    These players revolutionized the market by removing barriers to entry.

    • Key strengths: 0 % entry fee, 0 % of arbitration fees and reduced management fees. They offer access to hundreds of investment vehicles (ETFs, SCPIs, individual securities) from multiple asset management companies.
    • Digitalization: Fluid interfaces allowing operations to be performed in a few clicks, with total transparency on performance.

    The Balmont approach: Open architecture

    Our firm is not limited to a single type of player. We select so-called "open architecture" contracts from the best insurers (Generali, Spirica, Suravenir, etc.).

    • Independence: We choose the insurer for its stability and the broker for its rates, while also integrating our personalized strategic advice.
    • Custom made : Access to Private Equity funds or structured products often inaccessible to the general public.

    Balmont's opinion: The best contract combines the stability of a large institutional insurer with the pricing flexibility of a modern broker. Stop paying entry fees that add no value to your savings.

    Balmont Conseil Expertise: Beyond Investment

    Choosing assurance-vie is not an end in itself. It is a tool to serve a strategy.

    At the house of Balmont Conseil, We use assurance-vie to address wealth management options complexes:

    • Retirement savings: Create regular supplemental income through planned buybacks.
    • Estate planning optimization: Drafting a split beneficiary clause to protect the spouse while passing on assets to the children.
    • Moderate risk investment: Use structured products or real estate funds within the contract to seek returns without the risk of pure stock market volatility.

    FAQ Your questions about French assurance-vie

    Can I have multiple assurance-vie policies?

    Is my capital locked in for 8 years?

    What happens if the insurer goes bankrupt?

    Can I convert my capital into an annuity?

    Is assurance-vie subject to the IFI (Real Estate Wealth Tax)?

    Take control of your long-term savings

    French assurance-vie remains the indispensable foundation of any wealth management. Its ability to adapt to all profiles — from the most cautious to the most daring — and its exceptional tax treatment on the inheritance making it a tool without equal.

    However, the proliferation of offers and the complexity of the media require an expert eye to avoid hidden fees and underperforming media.

    Ready to optimize your investments?

    Schedule an appointment with Alexis Sagnier for a free audit of your current contracts or a tailor-made recommendation.

    Alexis Sagnier

    With over 17 years of expertise in financial engineering, Alexis Sagnier assists executives and expatriates in securing their cross-border challenges.

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    Sources & References:

    • General Tax Code (CGI) : Article 155 B.
    • Official Bulletin of Public Finances (BOFiP) : Impatriate regime (BOI-RSA-GEO-40).
    • 2025 Finance Law Analysis of recent developments.
    • Case law on impatriation : Decisions of the Council of State on reference remuneration.
    • ANACOFI Member Booklet : Standards for consulting in wealth engineering.

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