Life Insurance France 2026: Assurance Vie Guide

1. What is assurance vie?

An assurance vie is a long-term savings contract. You pay money into it whenever you want. The insurer invests it according to your choices, in a capital-guaranteed euros fund or in riskier unit-linked supports with higher return potential. You can withdraw part or all of the savings at any time.

The name is misleading. This is not a death policy in the strict sense: it is mostly a savings product, paired with a very favourable inheritance mechanism. That explains its success. According to France Assureurs (press release of February 2026), total outstanding assets reach EUR 2,107 billion at the end of December 2025, up 6.1% year on year. Net inflows of EUR 50.6 billion over 2025 cross the EUR 50 billion mark for the first time since 2010.

2. How does a contract work?

The mechanism is straightforward. You deposit money, the insurer invests it, and your capital earns interest or capital gains depending on the supports you choose. You stay in control: one-off deposits, scheduled deposits, switching between supports, partial or total withdrawals.

Types of deposits

• Initial deposit: at contract opening, typically from a few tens to EUR 1,000 depending on the insurer
• Free deposits: whenever you decide, with no commitment
• Scheduled deposits: automatic monthly or quarterly debit, sometimes from EUR 25 upward

Access to your savings

Despite a stubborn belief, your money is not locked. You can request a partial or total withdrawal at any time. The insurer has a legal deadline of two months to pay (Article L132-21 of the French Insurance Code). In practice, online contracts often process a partial withdrawal within a few business days.

• Partial withdrawal: take out part of the capital, the contract stays open
• Total withdrawal: close the contract and recover the full amount
• Advance: borrow against the contract value without triggering withdrawal taxation

For a step-by-step view of the official process, the public portal Service-Public.fr fact sheet F15274 describes how an assurance vie contract operates in France.

3. Euros funds, unit-linked, Eurocroissance

A multi-support assurance vie contract offers several investment compartments. The right mix depends on your time horizon, your risk profile and your goals.

The euros fund: guaranteed capital

This is the historical support. Your invested capital is guaranteed by the insurer. Interest credited each year is definitively acquired thanks to the ratchet effect, even if markets fall afterwards. The return remains modest, because insurers are required to invest mostly in sovereign bonds.

Unit-linked supports (UC)

Unit-linked supports are invested in financial markets. They offer higher return potential but carry a capital-loss risk. Most modern contracts offer several categories side by side:

• Equity, bond or diversified mutual funds
• SCPI and OPCI to gain exposure to real estate without direct property management
• ETFs (index funds) with low fees, tracking a market index
• Structured products with partial capital protection under conditions

Eurocroissance: a third compartment

Launched in 2014 and reinforced by the PACTE Act of 2019, the Eurocroissance fund offers a capital guarantee only after 8 years, in exchange for a return expectation above the classic euros fund. It is still a minority option in market contracts, but several insurers now propose it.

4. Euros fund returns: what the official 2024 to 2025 figures say

The average gross return of euros funds has stayed in a narrow band for three years, despite the rise in interest rates. The figures below are published by the Autorite de controle prudentiel et de resolution (ACPR), a subsidiary of the Banque de France.

The average masks wide disparities. The best fee-free contracts reach 3% to 4% in 2025, while old branch contracts often pay around 1.5%. To compare with other vehicles, see our guide to the Livret A (1.50% net since February 2024) and our overview of savings products in France.

To support these levels, insurers tap into their reserves: the provision for policyholder bonuses (PPB) is estimated at around 3.7% of outstanding assets at the end of 2025, against 4% a year earlier.

5. Withdrawal taxation: everything turns on the 8-year rule

The taxation of assurance vie applies only to gains (interest and capital gains), never to the principal you paid in. It is triggered at withdrawal. Core rule: the older the contract, the lighter the tax. The thresholds below are confirmed by the Service-Public F22414 fact sheet updated for 2026.

Note: social contributions of 17.2% apply in all cases. For deposits above EUR 150,000, the portion in excess is taxed at the 12.8% flat rate even after 8 years.

The annual allowance after 8 years

This is the most powerful fiscal lever. Once you pass the 8-year mark, you can withdraw part of the gains every year without paying income tax (social contributions still apply).

• EUR 4,600 allowance for a single filer
• EUR 9,200 for a married or PACS couple filing jointly

In practice, a single saver can take out around EUR 30,000 per year from an old contract (depending on the gains-to-principal ratio in the withdrawal) without any income tax, provided the withdrawal is dosed carefully. This mechanism is why assurance vie often complements a French pension.

6. Inheritance and transmission: the Article 990 I advantage

Assurance vie largely escapes standard inheritance taxes. The death capital is transmitted to designated beneficiaries under specific rules of the French Tax Code. Two regimes coexist, depending on the policyholder age at the time of deposits.

Deposits made before age 70 (Article 990 I)

Each beneficiary receives up to EUR 152,500 free of any tax, across all contracts. Above this, a specific levy applies: 20% up to EUR 700,000 of taxable share (so EUR 852,500 received), then 31.25% above. The rule is confirmed by Article 990 I of the Tax Code on Legifrance and remains in force in 2026.

Deposits made after age 70 (Article 757 B)

For premiums paid past 70, the allowance is global: EUR 30,500 for all beneficiaries taken together, across all contracts. Above that, premiums fall back into the standard inheritance and are taxed according to family ties. Accumulated gains, on the other hand, stay tax-free. This dual regime is why many savers open a new contract before turning 70 rather than topping up an existing one afterwards.

Spouse, PACS partner and beneficiary clause

A married spouse or PACS partner is fully exempt, whether under Article 990 I or 757 B (Article 796-0 bis of the Tax Code). The wording of the beneficiary clause matters: a vague clause (for example "my heirs") can wipe out the fiscal advantage. Prefer a nominative designation with date of birth, completed by a subsidiarity order (for example: "failing them, my living or represented children, in equal shares").

Since 19 December 2007, formal acceptance of the benefit by the beneficiary requires written consent from the policyholder. This rule protects the policyholder who wants to update their clause later in life.

7. The fees to watch

Fees quietly chip away at returns year after year. Over a 20-year horizon, one extra percentage point of fees can mean tens of thousands of euros lost. Four cost lines deserve a side-by-side comparison before you sign.

8. PACTE Act: transferability and new options

The PACTE Act of 22 May 2019 (Article 72) introduced a major change: the right to transfer an assurance vie contract older than 8 years to another contract held with the same insurer, without losing fiscal seniority. Before PACTE, you had to close the old contract and open a new one, which restarted the 8-year clock.

In practice, a saver stuck with an old high-fee contract can now ask the insurer to move the savings to a modern, more competitive contract, provided both contracts are with the same insurer. Transferability does not work across insurers.

PACTE also pushed responsible investment forward: since 2022, every multi-support contract must offer at least one unit-linked support carrying the ISR label (socially responsible investment), Greenfin (energy transition) or Finansol (social and solidarity economy).

9. FGAP guarantee and Sapin 2 Act: what really protects your savings

The Fonds de garantie des assurances de personnes (FGAP) protects each policyholder up to EUR 70,000 per contract and per insurance company in case of insurer default. This ceiling covers both principal and accumulated interest. For savings above this threshold, diversifying across several insurers is the only way to maximise coverage.

Another risk often left unsaid: the Sapin 2 Act of 9 December 2016 (Article 49) allows the Haut Conseil de stabilite financiere (HCSF) to temporarily suspend redemptions on euros funds in a severe systemic crisis. The measure has never been activated since it came into force, but the option exists. Better to know before parking every euro of precautionary savings on a single contract.

On top of this, there is the legal cooling-off period. You have 30 days after signing to renounce a contract without giving a reason (Article L132-5-1 of the French Insurance Code). Deposits are fully refunded.

10. How to open an assurance vie in 5 steps

1. Define the objective and time horizon. Building savings, retirement or inheritance: the target decides the split between euros funds and unit-linked supports.
2. Compare contracts. Entry fees, management fees, euros fund return over 3 to 5 years, number of unit-linked supports available, financial strength of the insurer (Solvency 2 report).
3. Subscribe online or in branch. Application form, ID, proof of address and RIB are enough. Online contracts allow electronic signature.
4. Make the first deposit. From EUR 100 to EUR 1,000 depending on the contract. Subsequent deposits can be free or scheduled monthly.
5. Designate beneficiaries. Nominative wording with date of birth. A subsidiarity order prevents the capital from falling back into the standard inheritance if the main beneficiary dies before the policyholder.

The opening date matters. It starts the 8-year clock for the favourable taxation. Many savers open a contract with a symbolic deposit (EUR 100) very early, then fund it later, to benefit from fiscal seniority as soon as they need it. This is the well-known "prendre date" strategy.

International residents in France can subscribe under the same rules, provided they hold legal residency and a French bank account. Compare with our health insurance guide for expats in France if you are still setting up financial life in France.

11. Assurance vie vs PER, PEA, Livret A: which to choose?

Assurance vie is not a stand-alone solution. It combines with other envelopes depending on goals. Here is the side-by-side view for a French household in 2026.

The four envelopes do not compete. The classic mix: Livret A for precautionary savings, assurance vie for long-term savings, PER for tax deduction on the way in, PEA for equity investing. To dig deeper, see our complete savings guide for France or our guide to the Lemoine Act on borrower insurance if you are also financing a property.

12. Common misconceptions about assurance vie

13. Frequently asked questions