Assurance-vie simulator: capital, capital gains and actual taxation after 8 years

Simulate your assurance-vie contract

Enter your initial deposit, your monthly savings effort, your investment horizon, and the details of your contract. The simulator will project the final capital, capital gains, and tax implications of a full withdrawal after 8 years. Your data is neither stored nor transmitted.

Why assurance-vie remains the foundation of any structured wealth

Nearly 80% of French assurance-vie contracts are distributed through banking networks, using a handful of in-house products often burdened with high fees. This is precisely where the first performance loss occurs—not in market returns, but in the contract's structure.

Because assurance-vie doesn't derive its strength from intrinsic returns: it's a vehicle. Inside, you can invest whatever you want—guaranteed capital euro funds, unit-linked funds (stocks, bonds, real estate, private equity), managed or self-directed investment. Its value lies in two tax advantages that nothing else combines.

The first is tax-free capital accumulation: as long as the funds remain invested, gains are never taxed. Taxation only occurs upon redemption, and solely on the capital gain portion—never on the initial investment. The second is the transfer of assets outside of inheritance, which neither the PEA (equity savings plan) nor the securities account allows. These are the two levers that most contracts underutilize.

The 3 levers that this simulator reveals (and that your banker isn't optimizing)

Lever 1: The 8-year mark transforms taxation

Before eight years, redeemed capital gains are subject to a flat tax of 31.4% (12.8% income tax + 18.6% social security contributions). After eight years, two advantages combine: an annual allowance of €4,600 on gains (€9,200 for a couple), and then a reduced rate of 7.5% instead of 12.8% on the portion corresponding to premiums paid up to €150,000. In practical terms, a couple can withdraw nearly €9,200 in capital gains each year without any income tax—only the 18.6% social security contributions remain due. Few savers manage their redemptions to take advantage of this allowance year after year.

Lever 2: the beneficiary clause, the contract within the contract

For premiums paid before age 70, each designated beneficiary receives up to €152,500 completely tax-free, outside of the estate. Beyond that amount, the tax rate is 20% and then 31.25%—rates significantly lower than inheritance tax for indirect heirs (up to 60%). However, this advantage only applies if the beneficiary clause is specifically drafted. A default or poorly worded clause can result in the loss of most of the benefit, trigger avoidable taxes, or deprive a loved one of protection.

Lever 3: Compound fees, silent erosion

A difference of 1 % in annual fees—the typical difference between a bank network contract and an open architecture contract—reduces the final capital by 20 % to 28 % over 30 years. On €200,000 invested at 6 % gross, this represents nearly €100,000 lost in compound fees. The choice of contract is therefore as important as the choice of investment vehicles: it is the most crucial decision, and the one least debated by distributors who rely on these fees for their livelihood.

Case study: Philippe, 58 years old, business owner in Bordeaux

Philippe invests €200,000 from a partial sale, plus €1,000 per month for 12 years, in an open architecture contract targeting a net return of 4.5 % after support fees. Here is what the simulator projects at maturity, after 8 years of holding:

The €22,000 difference does not stem from any additional risk-taking; it results solely from the contract's fee structure. Regarding the portion transferred, the beneficiary clause allows Philippe to pass on €152,500 to each of his two children outside of the estate, whereas a standard transfer would have been taxed up to 20%.

This case illustrates a simple rule: with identical allocations, it is the envelope and the wording of the clause that make the difference — not the market.

The envelope doesn't make the strategy

This simulator provides a rough estimate. The real value is created upstream: choosing a contract with controlled fees in an open architecture, allocation of euro funds / unit-linked funds aligned with your horizon, tailoring the beneficiary clause, and linking it with your PER, your real estate and, where applicable, your company.

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. This objectivity allows for a truly open architecture: we select contracts and investment vehicles across the entire market, solely in your best interest. Let's make an appointment to audit your current contract and quantify what an optimization would save you.

Frequently Asked Questions

When does assurance-vie become tax-efficient?

From the moment of subscription, gains accrue tax-free. The maximum benefit is triggered after 8 years of holding: an annual allowance of €4,600 (€9,200 for a couple) on redeemed capital gains, then a reduced rate of 7.5% on the portion corresponding to premiums paid up to €150,000. It is therefore advantageous to open a contract early, even with a modest initial investment, to establish a starting point.

What are the tax implications of the transfer?

For premiums paid before age 70, each beneficiary receives up to €152,500 completely tax-free, outside of inheritance tax. Beyond this amount, the tax rate is 20% up to €700,000, then 31.25% thereafter. For premiums paid after age 70, a total allowance of €30,500 applies (for all beneficiaries combined), but the capitalized interest remains entirely tax-free. The wording of the beneficiary clause is crucial for optimizing this transfer.

Euro funds or unit-linked funds: how to choose?

The euro fund guarantees the capital, but its return (currently between 2.5% and 3.5% per %) barely keeps pace with inflation. Unit-linked funds aim for higher performance at the cost of a risk of capital loss. The optimal allocation depends on your investment horizon and risk tolerance: the longer the horizon, the higher the proportion of unit-linked funds can be, as time smooths out volatility.

Why do the costs of a contract matter so much?

Because they compound negatively, just like interest but in reverse. A difference of 1 % in annual fees represents 20 % to 28 % less final capital over 30 years. This is the structural difference between a bank network contract and an open architecture contract: the choice of contract is just as important as the choice of investment vehicles.

What is the difference between Balmont Conseil and a bank advisor?

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. This objectivity allows for an open architecture: selecting contracts and investment vehicles across the entire market, solely based on the client's best interests. While a bank advisor distributes products from their network, we build a customized wealth management strategy.