What taxation will be applied to life insurance in 2022?

Many French people opt for a life insurance contract. Indeed, it is possible to take advantage of an interesting taxation with such a contract, although the regulations are relatively complex to understand. In fact, the rules are not the same depending on whether it is a redemption or a transmission, for example. In addition, it is often necessary to wait several years after the opening of a contract to benefit from the most advantageous taxation.

Many points need to be considered when signing a life insurance contract, especially for the annual fee limiter, but also for an interesting return. However, finding out about taxation right from the start is ideal as it will be able to assess you after how many years you can make your project a reality, for example, or to know what is the ideal time to make a donation of your own. alive.

Favorable taxation for this savings product

Different tax rules apply depending on when you want to withdraw money, especially depending on your age. So much so that you are not affected by any investment or interest, you are not required by your insurance.

On the other hand, from the moment you make withdrawals or in case of succession, a tax scale is applied. Do not hesitate to consult a summary table of taxation for life insurance in order to know the percentage of your savings that will be imposed in case of partial or total withdrawal for example. Numerous data are taken into account to know the greatest extent. You should read your life insurance policy carefully before signing it so that you know, for example, from that moment on, that you can withdraw your savings to carry out a project or to make a living donation to someone close to you. ..

The redemption of your savings, or, in other words, the withdrawal of the latter, whether partial or total, is interesting from the moment a number of years have elapsed since the signing of the contract. Indeed, it takes an average of 8 years before you can benefit from optimal taxation. Please note that in all cases, your earnings are the only ones to be taxed, the amount of payments made since the opening of the contract is not taken into account for the calculation of your tax base.

In addition, payments made before September 27, 2017 are not taxed in the same way as those made after that date. See the table with all the data related to the taxation of insurance, you can determine the tax rates applicable in case of redemption.

A particular taxation in case of a succession

Many French people turn to life insurance in order to prepare their estate due to the advantageous taxation that is applied to this savings product. Two criteria are taken into account to determine the tax applied to the capital remitted to the beneficiary: the age of the subscriber when the different payments were made and the date on which they took effect.

Thus, a certain part of the transferred capital will be exempt from tax depending on whether the payments were made before or after the 70 years of the insured.

Note that the surviving spouse or PACS partner is fully exempt from inheritance tax. This has been in force since 2007, through the TEPA Act, and also applies to insurance capital, unaccompanied or partnered with PACS hérite.

In addition to this, it is quite possible to have several life insurance policies, in this way it is possible to simplify the estate by designating a specific beneficiary for each contract.

Taxation absent in some particular cases

It may not be imposed on the versions, interests and surplus values ​​in certain cases provided for by the legislator. Thus, if you are licensed, ou même votre conjoint, you can get a redemption of your savings without being imposed. The same applies in the event of the liquidation of your company or that of your spouse, if one of you is retired early or if you suffer a 2nd or 3rd category disability.

If you signed your contract many years ago, it is also possible that you can withdraw your money without being taxed. This is also the case if your contract was taken out before January 1, 1983 or if the last payments were made on your life insurance before September 25, 1997.

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