Understanding the Age of Reason for Life Insurance and How to Benefit from It

Despite the tax changes made in 2017, which introduced the single flat-rate levy (PFU) at 30% more advantageous over short durations, the age of reason for life insurance remains fixed at eight years.
It is from this moment that one benefits from an annual reduction on the earnings withdrawn of €4,600 for a single person and €9,200 for a married or PACS couple.
These sums are not subject to income tax but only to social security contributions at the rate of 17.2%. While the amount may seem quite small, it is, in fact, higher than it seems since it relates to the winnings and not to the total amount of the withdrawal (see example below).
To benefit from it, it is enough to have “taken date” by opening the contract, if only by paying a few euros, for more than eight years. The counter begins to run without you having tied up any money.