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Assurance-vie
Assurance-vie: available whenever you want, passed on outside of the estate.
Your savings stay accessible at any time, the tax on their gains is lighter after eight years, and they go to your beneficiaries outside the estate. Here are the 2026 rules.
Taxation of withdrawals
Only the gains are taxed, never the capital paid in.
| Contract age | Tax on gains | Social charges |
|---|---|---|
| Under 8 years | 12,8 % | 17.2% |
| 8 years or more, premiums up to €150,000 | 7.5% after an allowance of €4,600 (€9,200 for a couple) | 17.2% |
| 8 years or more, premiums above €150,000 | 12.8% after the allowance | 17.2% |
Article 125-0 A of the French Tax Code. You can opt for the income tax progressive scale if your bracket is lower. A withdrawal always mixes capital and gains: only the gains portion is taxed.
Estate planning
Outside the estate, with its own allowances.
Each beneficiary receives €152,500 free of tax, all contracts combined. Above that, a 20% levy up to €700,000, then 31.25% (Article 990 I of the French Tax Code).
Premiums are subject to inheritance tax above €30,500, all beneficiaries combined. The gains, however, remain exempt (Article 757 B of the French Tax Code).
They are completely exempt, whatever the amount (Article 796-0 bis of the French Tax Code). A split beneficiary clause (usufruct / bare ownership) protects the spouse while preparing the transfer to the children.
The contract
What it contains, and how to change it.
Capital is guaranteed by the insurer, and the interest credited each year is locked in.
Stocks, bonds, real estate, private equity: a range that varies from one contract to another, and whose fees also vary.
A transfer to another contract with the same insurer keeps the contract's tax start date (PACTE Act of 22 May 2019). Changing insurer means surrendering, then reinvesting.
Frequently asked questions
What clients ask us.
Should you close an old assurance-vie policy to open a cheaper one?
Rarely. For a contract more than eight years old, the value lies in its start date: on gains withdrawn, a €4,600 annual allowance for a single person, €9,200 for a couple (Article 125-0 A of the French Tax Code). Closing it resets that counter to zero.
Often, people keep the old contract without paying into it any more, cut its fees by switching funds, and send new payments elsewhere.
How much does my contract actually cost me each year?
Three layers of fees add up: contract management fees (often 0.5 to 1% a year), the fees of each unit-linked fund (often 1 to 2%), and sometimes switching fees.
The annual statement shows the rates (Article L. 132-22 of the Insurance Code), rarely the amounts. On €200,000, 1.5% a year comes to €3,000 every year. The X-ray reads your statement and gives you this figure, contract by contract.
How should the beneficiary clause be worded?
The standard clause "my spouse, failing that my children" suits many families, but not all: blended families, a child who needs protecting, passing wealth to grandchildren. Each named beneficiary has their own allowance of €152,500 (Article 990 I of the French Tax Code).
The clause can be modified at any time, as long as it has not been accepted by the beneficiary.
What happens to my assurance-vie if I move abroad?
The contract carries on: there is nothing to close. What changes is the rules of the destination country and those of the insurer, which may refuse new payments from certain countries. The tax on withdrawals depends on the tax treaty; failing that, France withholds 7.5% or 12.8% on the gains (Article 125-0 A of the French Tax Code).
Before a move abroad, a Luxembourg contract, designed to follow its policyholder from one country to another, is worth a look.
