France Assureurs, the former French Insurance Federation (FFA), published its white paper on Tuesday 8 March Strengthening life insurance in the service of the economy and sustainable growth. Beyond an inventory of the life insurance market with the French, the association proposes in particular the update of the pivotal age of life insurance and to raise the ceilings of deductible payments of the retirement savings plan .
On the eve of the presidential election, France Assureurs publishes its white paper Reinforcing life insurance in the service of the economy and sustainable growth in which the association makes several proposals to improve life insurance and PER.
Update certain life insurance parameters
Two parameters are highlighted in the study of the former French Insurance Federation and in particular indexing the pivotal age of life insurance on the lengthening of life expectancy. Concretely, passing this pivotal age from 70 to 75 years. In addition, insurers also want to change the amount of tax relief at the time of transfer of life insurance capital. France Assureurs would like the 30500euros pass 46000euros and the 152500 204000euros.
Reminder of the taxation in force on the allowances
Specific taxation applies to the beneficiaries of the contract depending on its opening date, the date of payment of the premiums and the age at the time of the payments (before or after 70). If the payments are made before the subscriber turns 70, his death, there is no tax up to 152500euros per beneficiary. A flat rate of 20% is applied, still per beneficiary, between 152,500 euros and 700,000 euros, then the rate is increased to 31.25% beyond that.
For payments beyond the age of 70, the taxation changes. The tax exemption only applies to 30500 first euros of payment. This exemption is applied to the total value of all contracts held and not per beneficiary.
Life insurance: comparison of offers
These proposals do not call into question the characteristics of life insurance. On the contrary, they aim to enable it to contribute even more to the financing of the economy, that of companies and the overall transformation of the economy towards a more sustainable model, in accordance with the expectations of the French, explains France Assureurs in its study. Currently, there are 18 million life insurance holders and no less than 38 million beneficiaries.
Increase the ceilings of deductible payments on the PER
In this second proposal of its white paper, France Assureurs dwells on the retirement savings plan. Today, 2.6million people hold a PER. Outstandings amount to 29.6 billion euros, 70% of payments on a PER are invested in companies, including 29% in shares, 37% in bonds and 4% in real estate. In order to support the French in preparing for their retirement, insurers therefore wish to raise the ceilings of deductible payments on the PER from 10 to 20% of professional income.
PER (retirement savings plan): advantages, taxation and comparison
Promoting fee transparency
Moreover, from June 1, 2022, a standard table grouping the costs by category will be posted on the website of each producer of PER or life insurance. France Assureurs intends to promote it by making known and recognized its interest and its consequences for the benefit of savers.
Life insurance and PER: new transparency rules on fees