Life insurance: the proposals of the candidates at the Élysée

Preferred investment of the French, is life insurance threatened? Afer wanted to know the answers of the candidates for the presidential election during its Assises de l’épargne, organized in Paris this Monday, March 14. Between promises of fiscal stability and more radical innovations, here are their proposals.

With 770,000 members and 55 billion euros in life insurance outstandings, Afer, the main savings association in France, knows how to make itself heard… and give politicians a voice!

Objective met with the eighth edition of the Assises de l’Afer, initiated by Gérard Berkerman, president of the association, which took place on Monday March 14, 2022 in front of 2,000 people, salle Pleyel in Paris.

Less than a month before the first round of the presidential election, Afer asked the candidates for the Elysée to come and outline the main lines of the savings policy they are considering. Six of them sent a representative. Here are the details of their proposals on life insurance, savings and estates.

Emmanuel Macron (The Republic On The March)

No “fiscal zig-zag”, according to his representative, LREM deputy Laurent Saint-Martin, who spoke to members of Afer: “We don’t touch anything in life insurance” which is a “product known and expected” by savers.

Fiscal stability, including on social contributions, specified to the Income Laurent Saint-Martin. In addition, there is no question of integrating life insurance into the estate. On the inheritance, Emmanuel Macron even envisages “relief on popular and middle class transmissions”.

Marine Le Pen (National Rally)

Its representative, Philippe N’Guyen, also advocated the stability of the tax status of life insurance and the creation of a sovereign fund. Managed by the Caisse des dépôts and invested in infrastructure and new technologies, this fund would offer savers fixed rate remuneration (+2%) which would increase according to the holding period.

For the estate, he mentioned a reduction of 300,000 euros on the main residence or on a “single residence” (for example, a second home if you are a tenant of your main residence).

Eric Zemmour (Reconquest)

For Vijay Monany, who came to defend the program of Eric Zemmour, no change either in the current taxation of life insurance. On the other hand, he mentioned the abolition of the Sapin 2 law (law of 2016 which allows the State to temporarily block redemptions on life insurance funds in euros).

The Reconquest candidate also plans to create an “Innovation Booklet” on the model of the PEA which would be exempt from taxation and social security contributions after five years.

Jean-Luc Mélenchon (La France Insoumise)

His spokesman Hadrien Toucel mentioned the end of the tax exemption for life insurance invested abroad to repatriate investments to the national territory. As for inheritance, he recalled Jean-Luc Mélenchon’s desire to completely exempt inheritances below 120,000 euros and to tax them at 100% above 12 million euros in order to finance, in particular, university residences.

In his program, the LFI candidate also provides for the creation of a large public banking center.

Yannick Jadot (Europe Ecology-The Greens)

According to his spokesperson, Guillaume Duval, the EELV candidate wants to introduce a tax deductible of 200,000 euros per person throughout life, including donations, inheritances but also life insurance which would thus lose its specificity in terms of of succession. EELV thus intends to release 6 to 8 billion euros to finance dependency.

On the investment side, Yannick Jadot wants to promote long-term savings and its investment in the ecological transition while tightening the existing labels (ISR and GreenFin).

Valerie Pécresse (LR)

Xavier Bertrand, his representative – who reminded Afer members that he was a former insurance agent – indicated that the Republican candidate will not affect the tax status of life insurance. On the contrary, it wishes to include in the constitution the non-retroactivity of tax rules. Valérie Pécresse also plans to allow the reduction of 100,000 euros for donations every six years (instead of fifteen years currently) or to increase the deductible on direct line inheritance (children) to 200,000 euros per heir (against 100,000 euros currently) and 100,000 euros in indirect line (nephews and nieces for example).

Gérard Bekerman concluded the Assises de l’Afer by suggesting his own proposals to the candidates. For example, it recommends increasing the pivotal age for life insurance payments to 75 years, which has been set at 70 years since 1991 (for sums paid beyond the age of 70, estate allowances are less avatangeux).

Or to raise the level of the allowance of 152,500 euros per beneficiary, also old since it dates from 1998. Technical points of life insurance on which none of the candidates is pronounced.

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