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Life insurance in France

Updated: Sep 14, 2022

In France, a kind of life insurance known as assurance vie might be an advantageous way to safeguard against inheritance tax, particularly if your French property will be passed on to a person who is not blood-related.


When you don't have sufficient wealth or income to exist in France without a spouse, you need to obtain life insurance. There are very few exceptions to this rule. When it comes to inheritance tax planning, a policy from France called an "Assurance Vie" may be of considerable assistance no matter what your circumstances are. This is particularly true if you want to leave an inheritance to a person who is not blood-related.


Assurland


Are you having trouble deciding which life insurance coverage would be best for you? Assurland makes it simple to analyze and compared different premiums. You can pick the appropriate level of coverage for yourself and your loved ones by using the comparison website to quickly and simply examine the offerings of the leading French insurers. Compare several life insurance policies with Assurland so that you may buy some peace of mind.


Do you need life insurance in France?


It is quite unusual for a typical working marriage to have adequate financial resources to cope with the possibility that one of the parents may pass away. This is the case even if the insurance associated with the mortgage pays off the home. They are likely going to need some kind of protection if anything were to occur to one of the parents. Take, for instance, a situation in which the mother stays at home with the children while the father maintains a salary of 50,000 Euros per year while the mother also works a few hours per week in a part-time capacity. Does she need to get life insurance in France considering that if her father passed away, she would be €50,000 poorer per year?


I believe that it is clear to all of us what the solution that makes the most sense is going to be. What would happen in such a scenario if the mother passed away before the father? He would now be responsible for finding daycare for the children and, most likely, also for paying for some help with the upkeep of the house. In addition, he would have to pay for this assistance. There is a strong argument in favor of providing coverage for the spouse as well.


The cost of life insurance in France


There is no denying the reality that relatively few individuals now have any intention of passing away, so why propose yet another bill? Let's look at some numbers. How much does it cost for an individual age 35 to insure a typical four-door family vehicle? Let's pretend it's $500 per year for the time being before we become inundated with bids. Which benefit is being covered in this transaction? about €15,000; hence, for €500 each year, one is covered for €15,000. How much coverage would you obtain for your buildings and goods if you paid €500 per year for insurance? I will speculate that the structures cost 150,000 euros, and the contents cost 50,000 euros. At the very least, this offer beats the price of the vehicle by quite a little. In the cases described above, you do not have a choice since you are required to have automobile insurance, and the vast majority of people prefer the peace of mind that comes with having buildings and contents insurance.


Now let's take our couple and find out how far the annual amount of €500 may go in terms of providing them with life assurance. Assuming a set period of twenty years, or until their children are no longer dependent on them, this may purchase coverage worth more than one hundred and fifty thousand euros. In all likelihood, this will not be sufficient to satisfy all of their requirements. It only goes to demonstrate the variety of advantages that come with various kinds of insurance policies.


Different types of policy


There are many different kinds of life insurance policies available in France, such as the "Whole of Life" policy, which is an investment-linked life policy that has cash in value. The advantage of this kind of policy is that it provides you with a cash lump sum if you decide you do not need the cover any longer. Another alternative would be to purchase a policy known as term assurance. This gives a predetermined quantity of life insurance for a certain period, as well as a predetermined premium that is agreed upon at the beginning of the contract.


The primary distinction that can be made in this case is that there is no investment connection associated with the insurance, and there is no cash-in value. On the other hand, the premiums are often less differentiated from one another. Both of these possibilities can be financed through periodic or one-time payments; however, the total cost need not constitute a sizable portion of your financial plan. Rather, it should be regarded as an essential expense on par with the premiums you pay for your other insurance policies; after all, your vehicle is not likely to pay your taxes for you.


To serve solely as a general reference to life insurance in France, this information is presented below. If you are having trouble, it is best to seek the aid of an expert since each situation is unique.



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