Life insurance: Disability savings to compensate for low income

People with disabilities can benefit from a tax advantage related to taking out a life insurance contract: they can deduct from their income tax 25% of payments within the limit of € 1,525 paid per year , to which are added 300 euros per dependent child. The maximum tax deduction is € 381.25 (25% of € 1,525) for a person without a child. For a person with two children, the payment ceiling is € 2,125 (1,525 + [300 x 2]), or a maximum reduction of € 531.25 per year.

Minimum six years in prison

“The tax advantage is conditional on the preservation of the contract for a minimum of six and a halfrecalls Pauline Lefel, head of the Île-de-France partnerships of the National Savings and Provident Union (UNEP). In addition, the subscriber must have a disability that prevents him from carrying on a professional activity under normal conditions of profitability. » He must verify that the invalidity rates and working conditions will meet the terms of the contract.

A life insurance policy (almost) like any other

In practice, disability savings contracts are like life insurance contracts like any other. Their taxation is the same, both during the life of the contract and in the event of exit, annuity or capital, or in the event of the death of the subscriber. However, they benefit from another tax advantage: social security contributions from the euro fund are only levied in the event of redemption, and not every year, as is the case for a conventional contract. “And in case of succession, on the death of the subscriber, they will be taken naked”said Pauline Lefel.

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