Nature of the contract

Life insurance is a savings product.

It's a contract where you pay premiums to an insurer to pay you principal on the contract's expiry date, or to pay principal to your beneficiaries when you die.

Death insurance is an insurance contract.

It's a contract where you pay premiums to an insurer who commits to pay a principal to your beneficiaries at the time of your death.

Amount paid to the beneficiary

The amount paid to the beneficiary is the savings set aside.

The amount paid to the beneficiary is the premium provided for when the contract was signed.

Identity of the beneficiary

The subscriber may be the beneficiary.

The subscriber cannot be the beneficiary.

The beneficiary is necessarily another person, family member or not.

Income tax

Earnings from a life insurance contract have different tax regimes, depending on the duration of the contract and the period of payment.

The capital of the death insurance shall be exempt up to €152,500.

The fraction greater than €152,500 is taxable, up to the amount of the last annual contribution paid before the subscriber's 70th birthday, at the rate of 20%.

Inheritance tax

For premiums paid before age 70 of the subscriber, the capital shall be exempt up to €152,500.

The share of capital that exceeds €152,500 is taxable at the rate of 20% for the fraction less than or equal to €700,000 and at the rate of 31.25% for the fraction beyond €700,000.

For premiums paid after age 70 of the subscriber, the capital shall be exempt up to €30,500.

The share of capital that exceeds €30,500 is taxable on inheritance tax.

The share of capital corresponding to contributions paid after age 70 of the subscriber is liable to inheritance tax.