To boost the life insurance market, senators LR Jean-Franois Husson and Albric de Montgolfier want to make it easier from 2025 to change insurance company for a life contract after eight years of detention. The text guarantees the portability of tax precedence if all of the savings are transferred.
It’s dynamite. The microcosm of insurance will suffocate if the Senate votes on the external transferability of life insurance contracts. After passing through the law commission, Franck Le Vallois, the general manager of France guarantors (FA), had displayed the color on the social network Linkedin. Boosting life insurance, yes. Blast it, no!, he asserts. The tax incentive of life insurance has been for decades the voting key that makes it a long-term savings. The tax portability measure will force insurers to redirect their investments towards shorter and less risky assets in order to be able to cope with larger outflows of savings while continuing to guarantee the capital invested by savers. By downgrading life insurance to savings, this tax portability measure will only result in losers: the 18million French people holding a life insurance policy. According to the figures available, the French have placed close to 1900 billion euros on this type of product for a total of 55 million contracts.
In his sights: article 7 of the law carried by the senators Les Rpublicains Jean-Franois Husson and Albric de Montgolfier which facilitates from 2025 the change of insurance company for a life contract after 8 years of detentioneven if moving your life insurance to take advantage of a more profitable contract has been partly possible since the Pacte law of 2019… provided you stay with the same insurance company.
An insufficient text according to LR senators. For them, Article 7 of their law ensures real internal and external transferability of life insurance and remedies the shortcomings of previous texts. On the other hand, it plans to go further in terms of transferability by offering the portability of the tax anteriority of the contract in the event of redemption and the opening of another life insurance contract taken out with another company, as soon as all of the savings are transferred. Objective: to boost market competition!
How to transfer your banking products to another bank
Lower costs and be able to compare them
To ease tensions, insurers will be allowed to present the customer with an internal option that could meet their needs. But, even on this point, the two LR senators are finicky. According to their text, the possibility of refusal offered today to the insurer must be eliminated and limit transfer costs 1% of acquired rights. These same costs would be zero from 8 years of contract.
Incidentally, the two senators are in favor of better information on the costs of these savings products. The French are used to paying for advice via a commission on savings, and not by paying fees, but it should be a tool to really compare life insurance costs!, they explained MoneyVox in October 2021. Since then, the obligation to summarize the fees in a standard table has come into force. But the two men intend to go even further.
Savings: It is necessary to compare the costs of life insurance more easily