Question 1

What is the tax treatment after 8 years?

Accepted Answer

After 8 years of holding, gains (interest and capital gains) benefit from an annual allowance of €4,600 for a single person and €9,200 for a married or PACS couple filing jointly. Beyond this allowance, gains are subject to the 30% flat tax (or 24.7% for premiums paid before 09/27/2017). You can also opt for the progressive scale if more advantageous. The 17.2% social contributions remain due in all cases.

Question 2

How is the gain portion calculated in a partial withdrawal?

Accepted Answer

For a partial withdrawal, the taxable portion (gains) is calculated proportionally. The formula is: Taxable gains = Withdrawal amount - (Total premiums paid × Withdrawal amount / Total contract value). For example, if your contract is worth €100,000 with €80,000 in premiums and you withdraw €10,000, taxable gains are: €10,000 - (€80,000 × €10,000/€100,000) = €2,000.

Question 3

Is life insurance advantageous for inheritance?

Accepted Answer

Yes, life insurance benefits from a very advantageous inheritance regime. For premiums paid before age 70, each beneficiary benefits from a €152,500 allowance, then 20% up to €700,000 and 31.25% above. For premiums paid after 70, a global allowance of €30,500 applies, then standard inheritance taxes. Gains generated after age 70 are fully exempt from inheritance taxes.

Life Insurance Withdrawal Tax 2026 | Free

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