You want to protect your loved ones, help your children get started in life, prepare for your retirement or have capital in the event of the unexpected. Do you know why the life insurance contract can be an adapted contract?
What are the purposes of taking out a life insurance policy?
The life insurance contract remains the preferred investment of the French because it can meet many objectives:
- pass on your heritage,
- finance your children's studies,
- buy real estate,
- prepare for retirement, etc.
According to a study by the French Insurance Federation, 85% of policyholders believe “it is a good transmission tool”. For 55% of 35-59 year olds, the main goal is to prepare for retirement.
Today, a new reason to turn to life insurance has emerged: precautionary savings. Indeed, the life insurance contract reassures. A study by the French Insurance Federation shows that for 81% of the insured, this contract “offers guarantees in the face of future uncertainties” and for 79%, it would be “a reliable and secure means of 'invest capital'.
Life insurance: a flexible and tax-efficient contract
When subscribing and according to the terms provided in your contract, you have the option of:
- determine a managed or free management mode,
- invest in a fund in euros and / or units of account support
- dispose of your savings by making partial redemptions or a total redemption,
- choose the beneficiary (ies) in the event of death.
In addition, one of the main advantages of the life insurance policy remains its taxation. Indeed, the gains are not subject to any taxation as long as you do not make redemption, whether partial or total.
However, in the event of a total or partial redemption, capital gains are subject to income tax in accordance with terms which differ depending on the date of payment of the premiums ((payments made before or from September 27, 2017).
Generali then calculates the part of the income which relates to the payments made before September 27, 2017 and that which relates to the payments made from this date, so that each fraction is subject to its own tax system and which is described in the table below:
IRPP: Personal Income Tax
PFO: Mandatory lump sum
PFL: Lump sum levy
PFU: One-off lump sum
To go further, consult the complete file on the taxation of life insurance.
The life insurance policy allows you to combine prudence and dynamism
Your insurance intermediary can offer you a multi-media contract which allows you to invest in euro funds and unit-linked supports. This contract is made up of more or less risky supports depending on your choices. It can be a good investment option for a long-term project.
Modularity and advantageous taxation are major advantages for savings adapted to your needs.
The yield of media in units of account is potentially higher. However, these supports are not guaranteed and involve a risk of capital loss, because their value can fluctuate upwards or downwards, depending in particular on the financial markets. The insurer commits to the number of units of account but does not guarantee their value.