In France, many savers have chosen to invest their money in life insurance contracts. With the end of the year approaching, a moment of reflection is necessary before withdrawal, so that you do not have to pay too much tax at the time of redemption.
“Life insurance is the main way to save in France: according to France Assureurs, a federation bringing together insurance companies, the net accumulation in life insurance is + 2.4 billion for the year 2023. of 1,923 billion euros”, a There are three types of life insurance contracts: life insurance, death insurance and a mixed life and death contract.
When a contract life insurance exceeding eight years of seniority, it allows its owner to benefit from a very attractive tax advantage. This reduction allows you to be exempt from income tax on your earnings, up to 4,600 euros per year, compared to 9,200 euros in the case of a couple. In other words, when the earnings do not exceed these thresholds, the saver will only have to pay the 17.2% social security contributions. It is useful to specify that this reduction only applies to the proportion of capital gains (gains).
This reduction offers for contracts longer than eight years are valid annually. This means that the saver will benefit from it from January 1 to December 31 of the same year. From January 1 of the following year, the reduction will be renewed. Therefore, for those who wish to make large withdrawals from their life insurance contracts and make the most of this tax benefit, two withdrawals (surrenders) are recommended: one in December and the other in January, to benefit from it. reduction for this year and next year.
The discount on old life insurance contracts allows you to make significant savings
So, to withdraw a large amount of money from your life insurance, for example 50,000 euros, with 41,000 euros in payments and 9,000 euros in earnings, make two withdrawals one month apart (each redemption is not higher than 4,500 euros in earnings) allows the saver tax savings of 330 euros.
However, it is useful to remember that the legal deadline for partial redemption is two months, even if this is generally done within a week to ten days. To avoid the risk of missing out on the 2024 reduction, it is therefore better to withdraw as early as possible, which leaves time to take advantage of the reduction for the next a year
2024-12-02 06:44:00
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