Flexible life insurance is more than a title

Flexible life insurance is more than a title. Likely to be supplied on the basis of a single premium, payments scheduled or completely free (an annual minimum amount of a few tens of euros is often required in this case), the life insurance contract is recoverable at any time. True if the output occurs before the age of eight, the interest it has generated will be taxed at a variable rate and the contract itself may suffer a contractual penalty of early redemption. Nevertheless, even wounded, the savings accumulated as life insurance is available at any time, which is not the case, for example, the PERP (people's retirement savings Plan) or contracts Madelin, dénouables the only time of the retirement decision.

Another advantage, nothing prevents the Subscriber to obtain, if necessary, an advance. The amount of this "loan" can reach up to 80 of the value of the contract, for a cost often equivalent to the (average rate of borrowing of State) MTCT Plus 1 to 2 points (for a total of 4.5 to 5.5 today).

Diverse, life insurance is also without question. The simple contract monosupport only placed in bonds, the NSK (ex - DSK) contract, effective since January 1, 2005, enables to benefit from a complete exemption of income (except social security payments) subject to be invested up to 30 at least shares, of which 10 per cent of risky securities, all combinations are possible. According to the degree of risk aversion and the composition of its heritage, the Subscriber can indeed build bundles, the equivalent of a securities account opened on the portfolios under a contract (in addition, bankers and insurers offer a selection of funds managed by other institutions), partial free of tax. "Until the arbitrations are in contract and revenues are capitalized, nothing is due to the tax authorities", notes Michel Tirouflet, Chairman of Michel Tirouflet Council, heritage engineering company. Remember that online if since January 1 this year, capital gains tax after discount 1.525 euro (3.050 euro for a couple). "The fact that financial assets can, in a contract, capitalize free of taxes was already a major asset. "It becomes even more significant in the perspective of the tax shield", continues Michel Tirouflet. All of the direct taxes is limited to 60 of income "received" the taxpayers involved have interest to capitalize gains instead of viewing them.

Indeed, the privileged tax regime that enjoys life remains his master asset. After eight years of detention, the interests generated by the contract (the capital is exempt from taxes) are beyond the income tax (only the social security payments are due) as long as they do not exceed 4.600 EUR (9.200 euros for couples subject to joint taxation). Past this threshold, the income are taxed up to 7.5 (i.e. a total of 18.5 when considering social security payments), than those from NSK contracted or a PEP-insurance. The allowance of 4.600 EUR is annual and delivered counters always zero, nothing prevents however gradually out of his contract to never trigger the taxation...

System of derogations

But it is mainly in terms of the transmission that the tax benefit of life insurance, comforted on 23 November 2004 by four judgments of the Court of cassation, remains unsurpassed. Any insured person who holds a (or several) life insurance can be the (or the) transmit to the (x) recipient (s) of choice, free of transfer, in a limit, which by recipient, can go up to the tune of 152.500 euros (beyond this amount, a 20 tax is due). This rule is valid regardless of the relationship between the insured and the beneficiary. And, theoretically, nothing prevents to open several contracts to pass under the same conditions, several times 152.500 euros. However, this discount applies to all contracts concluded by the same person for the benefit of a same beneficiary.

Another limit, since November 20, 1991, the allowance has been reduced to 30,500 euros for premiums paid by an underwriter for seventy years or more (beyond this amount of capital passed, the classical scheme of rights applies, but the interests of the contract remain exempt). "You imagine all the heritage possibilities opened up by this derogation scheme," notes Michel Tirouflet. It is clear the interest to resort to a contract of life insurance to reduce the rights associated with the transmission of heritage or even encourage such recipient. But, beware, this heritage "Pearl" cannot be used without a minimum of precautions to avoid some perverse effects.