Savings: “Should we open a new life insurance contract after 75 years?”

In the “big savings meeting” (capital / radio heritage), Sarah Le Gouez, secretary general of the Cercle de l’Epargne, and Nathalie Couzigou-Suhas, notary in Paris, respond to an auditor who wonders about the relevance of opening a new life insurance contract beyond 75 years.

Capital video: Life insurance: should you open a new contract after 70 years?

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Each month, the “big savings meeting” (capital / radio heritage) answers your questions in the “your questions, our answers” sequence. Our experts – notaries, taxpiens, specialists in investments – support you on all your heritage issues. Today, Catherine, 76, wants to place 30,000 euros. Already holding four life insurance contracts open for more than 20 years, she hesitates between reinvesting on her existing contracts or opening a new, more efficient. She specifies that she has no direct descendants.

For Sarah Le Gouez, secretary general of the Cercle de l’Epargne, the fact of not having children is not a brake: “The advantage of life insurance is to be able to transmit to the person of their choice, with a much more advantageous taxation than that of a conventional succession.” She recalls that it is quite possible to take out a new contract at any age, even after 75 years. However, she recommends that Catherine consult her advisers to see if it is better to energize her existing contracts rather than opening a new one.

May be better to “boost” the performance of its existing contracts

Nathalie Couzigou-Suhas, notary in Paris, provides significant precision on the inheritance level: “Before 70 years, the premiums paid on a contract benefit from a reduction of 152,500 euros per beneficiary. After 70 years, taxation is less favorable, but there is still an overall reduction of 31,865 euros, shared between beneficiaries. ” This reduction can still be interesting, especially to transmit capital to nephews or nieces. “As part of a conventional succession, the latter would be taxed up to 60%, which makes life insurance much more advantageous.”

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A last point of vigilance: “It is also necessary that Catherine thinks of her old days and takes care not to get too far away,”, concludes the notary. In summary, opening a new contract after 75 years remains possible and can be of interest, in particular to optimize transmission.

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