Life insurance: how to pass on capital with flexibility and tax benefits?
Would you like to support the Procure missionnaire de l’Assomption and find out how best to pass on your capital? Do you want your capital to be meaningful and to help build hope in the world? Life insurance is a versatile financial tool that allows you to build up, grow and pass on capital within a tax-advantaged framework. It remains one of France’s favorite savings products. Whether you wish to prepare your estate, support an association or optimize your tax situation, life insurance offers total flexibility.
1. What is life insurance and what is it used for?
Life insurance is a contract taken out with an insurance company or bank that allows you to :
- Build capital through one-off or regular payments.
- Grow your capital through financial products (euro funds, unit-linked products).
- Pass on your capital to one or more designated beneficiaries, free of inheritance tax in certain cases.
What are the different types of contract?
Not all life insurance policies offer the same benefits, clauses or objectives. It all depends on your contract. This brief summary gives you an overview at a glance.
| Contract type | Features | Benefits |
| Euro contract | Guaranteed capital, annual return set by the insurer. | Security, liquidity. |
| Unit-linked contract | Capital invested in equities, bonds, etc. (variable return). | High yield potential. |
| Multi-support contract | Combination of euro funds and unit-linked products. | Balance of safety and performance. |
Why choose life insurance?
Life insurance has the great advantage of being flexible: you can change the beneficiary at any time. It offerstax advantages, with partial or total exemption from inheritance tax for beneficiaries. And since the capital is passed on outside the estate, family disputes are avoided.
Testimonial: “I have designated the Procure missionnaire de l’Assomption as the beneficiary of my life insurance policy. It’s a simple and effective way of supporting their work without going through a notary.” – Pierre, donor
2. What are the tax advantages of life insurance?
After 8 years, you benefit from an allowance of €4, 600 (for a single person) or €9,200 (for a couple) on capital gains in the event of partial or total surrender.
The tax rate is as follows
- 7.5% after 8 years (excluding 17.2% social security contributions).
- 12.8% for contracts taken out before 2018.
For example, if you withdraw €10,000 in capital gains after 8 years, only €5,400 will be taxable (€10,000 – €4,600).
Before this 8-year period, taxation is progressive.
The tax rate is as follows
- 35% for redemptions before 4 years.
- 15% between ages 4 and 8.
What taxation applies in the event of death?
Capital transferred to designated beneficiaries is exempt from inheritance tax up to a limit of : 152,500 per beneficiary (for payments made before age 70) and €30,500 per beneficiary (for payments made after age 70). So if you name your child as beneficiary, he or she can receive up to €152,500 free of inheritance tax.
Life insurance bequests to associations recognized as being in the public interest and having the exclusive aim of providing assistance and charity (such as the Procure missionnaire de l’Assomption) are exempt from inheritance tax, regardless of the amount. If you name the Procure missionnaire de l’Assomption as the beneficiary of your life insurance policy, no inheritance tax is payable.
3. How do you designate your beneficiary?
When you take out the policy, you can designate one or more beneficiaries (e.g. a child, the Procur missionnaire de l’Assomption). This is the initial designation. It takes the form of a clear statement: “I designate [Last name and First name] as beneficiary for [X] %.
Example: “I designate my son, Paul Martin, as 50% beneficiary, and the Procure missionnaire de l’Assomption as 50% beneficiary.
You can change the beneficiary at any time by rider or registered letter to the insurer. There is no charge for this: in most cases, the change is free of charge.
Examples of standard life insurance clauses
- For a sole beneficiary: “I designate my wife, Marie Dupont, as sole beneficiary.
- For multiple beneficiaries: “I designate my children, Paul and Sophie, in equal shares.
- For a beneficiary association: “I designate the Procure missionnaire de l’Assomption as the beneficiary.
4. What are the steps involved in taking out life insurance?
Choose your contract carefully
Take the time to compare offers (fees, returns, management options) and opt for a multi-support contract to balance security and returns.
Designate your beneficiary
Specify the names and shares of each beneficiary and check the eligibility of associations (e.g.: Procure missionnaire de l’Assomption).
Manage your contract over time
Remember to top up your life insurance with regular or one-off payments, and arbitrate regularly between euro funds and unit-linked products.
5. How to avoid common mistakes
Remember to include your beneficiary
- Mistake: not updating the beneficiary clause after a divorce or death.
- To avoid this: check and update if necessary.
Don’t buy life insurance without comparing costs
- Mistake: choosing a contract with high fees.
- To avoid this: compare management and arbitration fees.
Don’t overlook tax issues after age 70
- Error: ignore the reduction in the allowance after age 70.
- To avoid this, anticipate your payments before age 70 to maximize the exemption.
6. Frequently asked questions about life insurance
Yes, you can distribute the capital among several beneficiaries (e.g. 50% to a child, 50% to an association).
The capital becomes part of your estate and is subject to standard inheritance tax.
Yes, any association declared to be of general interest and which pursues an exclusive goal of assistance and charity, as is the case with the Procure missionnaire de l’Assomption, can be designated as a beneficiary.
Life insurance, more than just capital
Have you decided to name the Procure missionnaire de l’Assomption as the beneficiary of your life insurance policy? This act of love and sharing will bear fruit beyond your lifetime, supporting other lives whose future will be fruitful thanks to your generosity. You’re passing on more than capital, you’re passing on life.
Would you like us to accompany you on this journey? We’re here to help you, in complete confidentiality.
Contact us: legs@assomption.org | 01 44 41 40 34