Assurance vie

Assurance vie - PER

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The taxation of life insurance in the event of life

- The products of life insurance contracts corresponding to the premiums paid until September 26, 2017 are subject, depending on the option chosen by the contract subscriber, either to the IR, or to the flat-rate deduction of tax on the returned.

The subscriber of the contract opts for the flat-rate direct debit.

In the event of redemption of the contract before 8 years, the products are taxed at the rate:

- 35% in the event of redemption before four years;

- 15% in the event of redemption between four and eight years. In the event of redemption of the contract after 8 years, the products are taxed at the rate of 7.5% and the contract subscriber benefits from an annual reduction on the products of 4,600 euros for a single person and 9,200 euros for a married or PACS couple subject to common taxation.

- In all cases, the products are also subject to social security contributions, the rate of which is 17.2%. (source: French Federation of Insurance)

- The products of the life insurance contracts corresponding to the payments made from September 27, 2017 are subject, depending on the option chosen by the contract subscriber, either to the IR or to the Single Fixed Levy (PFU).

The subscriber of the contract opts for the PFU: the amount of the payments made is equal to or greater than 150,000 (300,000 euros for a co-subscriber couple): the products are taxed at the rate of 12.8%.

In the event of redemption of the contract after 8 years, the fraction of the products corresponding to payments made below 150,000 euros is taxed at the rate of 7.5%. The amount of the payments made is less than 150,000 euros (300,000 euros for a co-subscriber couple): the products corresponding to these payments are taxed at the rate of 12.8%.

In the event of redemption of the contract after 8 years, the products are taxed at the rate of 7.5%. In addition, in the event of redemption of the contract after 8 years, the subscriber of the contract benefits from an annual allowance on products of 4,600 euros for a single person and 9,200 euros for a married or PACS couple subject to common taxation.

• The taxation of life insurance in the event of death

- The case of contributions paid before age 70 (CGI art 990 I).

Contracts signed since 20/11/91, below 152,500 euros, the contributions of which have been paid since 13/10/98, are exempt from inheritance tax.

A direct debit is due by each beneficiary when the share of death benefit due to them exceeds 152,500 euros.

Since July 1, 2014, upon the death of the insured, this deduction amounts to: 20% on the fraction of the net taxable share of each beneficiary less than or equal to 700,000 euros (after deduction of 152,500 euros for each beneficiary); 31.25% for the fraction of the net taxable share of each beneficiary exceeding 700,000 euros (after deduction of 152,500 euros for each beneficiary) (Total exemption for payments before 13/10/98 made before age 70) (source : French Insurance Federation)

- The case of contributions paid after 70 years (CGI

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