For 6 out of 10 French people, life insurance is a safe and reliable way to save while allowing you to pass on your assets under good conditions (Photo credit: 123RF)
While the candidates for the presidential election have made the theme of succession one of the main topics of the campaign, it emerges from a survey conducted by OpinionWay at the request of France Assureurs, that the majority of French people are opposed to a reform of the taxation of life insurance linked to the estate.
Life insurance is one of the main “popular transmission” devices
The preferred savings product of the French, life insurance represents 1.876 billion euros in outstandings. Accessible to all, it has 18 million holders and 38 million beneficiaries. It plays an important role in the transmission of the heritage of the French since 24% of donations come from life insurance products.
The candidates for the presidential election have also made the theme of succession one of the main topics of the campaign. A sensitive subject because the French favor life insurance, one of the main devices of “popular transmission”.
Indeed, a survey conducted by OpinionWay at the request of France Assureurs (formerly FFA, French federation of insurers), confirms the broad support of French people for life insurance.
First of all, the French consider that the taxation of inheritance rights, and in particular that of life insurance, should not be increased: 67% of them find it unfair that the transmission of assets from parents to their children is subject to inheritance tax. In addition, 63% think that a reform of the taxation of life insurance linked to the estate would be a bad thing.
Then, for 6 out of 10 French people, life insurance is a safe and reliable way to save while enabling the transfer of assets under good conditions and offering guarantees in the face of the uncertainties of the future. With the preparation for retirement, these are the main objectives sought. This proportion rises to 8 out of 10 French people among those who already have life insurance.
The proposal of France Assureurs on the taxation of life insurance
Life insurance can transmit up to 152,500 euros to each beneficiary, without inheritance tax. For payments made after the age of 70, it is only possible to transfer 30,500 euros to all the beneficiaries exempt from inheritance tax.
France Assureurs wishes to change certain parameters of life insurance, unchanged for 30 years, to adapt to changes in society and French lifestyles. The federation of insurers thus proposes to index the pivotal age on the lengthening of life expectancy and to bring it to 75 years, against 70 years today. It proposes to index the amount of allowances in the event of transmission by increasing them from 30,500 to 46,000 euros and from 152,500 to 204,000 euros.