UNDERSTANDING LIFE INSURANCE

The taxation of life insurance is undoubtedly the number 1 asset of this investment. It does not mean to hide the other benefits of life insurance. And they are many.

Taxation of life insurance: a major asset

There are two types of taxation in life insurance: the one on products (or gains) at the time of redemption and the one on the sums transferred in the event of death.
For the products, only the social security contributions are due when the proceeds of the funds in euros are entered in the account, as the case may be, so long as no redemption takes place. On the occasion of redemption, the products are subject to the progressive schedule of the income tax or to a lump sum deduction decreasing as the duration of the contract and depending on the dates and the amount of your payments.

For amounts transferred in the event of death to one or more beneficiaries, it should be known that the advantageous taxation of life insurance generates many cases of exemption . It is a function of different parameters: contract subscription date, payment dates, possible relationship and amounts transmitted.


Beneficiaries life insurance: great freedom
The success of life insurance also lies in the possibility of optimizing its inheritance , most often excluding inheritance tax . And the possibility of appointing one or more beneficiaries of one's choice, especially without any kinship constraints. Within the limits set by the regulations.

Ceiling life insurance: no limit
The current life insurance regulations do not specify a maximum amount for payments. It also does not impose a minimum amount at the time of subscription, or later. These thresholds are eventually set by the contracts.

Life insurance term: indefinite ...
As before, the regulation imposes no minimum or maximum duration of the contract. This one can therefore, most of the time, be subscribed and preserved until the death of the subscriber.  According to the provisions of the contract

Life insurance buyouts: at choice 
Contrary to popular belief, savings and its interest are available at any time and not at the end of 8 years of the contract only! Redemption  can be partial. They can also be programmed, for example as part of a retirement savings plan to obtain additional income, without this preventing further payments thereafter. The redemption can also be total but in this case the contract is closed and all the tax benefits related to his seniority are lost.

Life insurance advances: a possibility to exploit  
In the event of a punctual need for cash, the question of advance or redemption can be raised, knowing that the advance must be repaid . But it has two advantages: it does not modify the terms of revaluation of the savings of the contract and it proves most often inexpensive.

Pledge life insurance: why not ...
All or part of the savings invested in a life insurance policy can be given as collateral for the benefit of a third party (bank). This system makes it possible to have solid guarantees, to avoid the subscription of a death insurance disability and not to modify the conditions of revaluation of the savings of the contract