As we have already said in this guide, the sums placed in a life insurance contract are never blocked and at any time, you can withdraw money. This withdrawal can take many forms:
- Partial redemption (free)
At any time you can make partial withdrawals or redemptions. If the beneficiary has accepted his designation since December 18, 2007, partial redemptions (and advances) can only be made with his agreement. Upon receipt of the redemption request, the insurer has two months to pay the funds. After this period, the sums bear interest. During the partial redemption, you must stipulate the tax option, either the flat-rate levy or the income tax.
Concretely, you send a partial redemption form to E-Patrimoine or you make this redemption online.
For the best option, see the life insurance tax page
- Scheduled partial redemptions
The life insurance investment offers the subscriber the possibility of scheduling partial redemptions to, for example, build up regular income for his retirement. There is usually a minimum amount on the contract. The frequency and the amount meet the same rules as for free partial redemption.
An advance is a loan from the life insurance company for interest. Faced with a one-off need for money, it may be better to ask for an advance rather than making a partial buyout. An advance is not taxable and does not decrease the value of the contract. Its real cost is not important because the subscriber leaves his money on the contract which continues to generate interest.