Life insurance


A life insurance policy provides a flexible way to save over the long term, while offering specific tax advantages.

Life insurance policies can be used for several purposes:

  • To gradually build up a financial wealth
  • To provide additional income for retirement
  • To save for child education expenses
  • To provide financial security for loved ones and transfer wealth.

Unit linked life insurance policy , offer a variety of investment vehicles and management options that can boost your savings:
 

Investment vehicles Management options
  • Euro funds:
    with capital guarantee
  • Unit linked:
    The value of unit linked varies with the stock market. The insurance company does not guarantee the principal amount, just the number of units.
  • Scheduled payments:
  • Securising capital gains
  • Progressive investment


Policy termination :
If the policy-holder is still alive when the policy matures, he or she will receive the principal amount.
If the policy-holder is no longer alive, the principal amount will be paid to the beneficiary or beneficiaries he or she has designated.

Why take out a life-insurance policy?

  • The money paid into the policy can be withdrawn at any time and at no expense (excluding any applicable social-security or personal income taxes).
  • There is no limit to the amount of money they can be paid in, nor on the number of policies that can be held.
  • You can change the beneficiary(ies) of your policy at any time and the underlying investment vehicles.
  • When you subscribe to a life insurance policy, your Advisor will take into account your requirements, goals and financial situation, as well as your financial knowledge and experience, to help you select the policy and investment vehicles that are most appropriate for your investment profile and in your best interest.

The Barclays advantage

Barclays life insurance policies are available with the management method you prefer : self-managed, profiled or delegated.

Barclays' Multi-instrument Life Insurance Contract

BARCLAYSMOOVIE BARCLAYS SPIRIMMO BARCLAYS GESTION DE FORTUNE BARCLAYS UNIVERSAL PLAN
For every phase of your life Combines the advantages of life insurance with real estate A premium policy, for a minimum investment of €300,000 Available in five currencies, for non-French tax residents
BARCLAYSMOOVIE BARCLAYS SPIRIMMO BARCLAYS GESTION DE FORTUNE BARCLAYS UNIVERSAL PLAN
Euro-denominated funds
OEICs - - -
Structured products - -
SCPI-REITs - -

Taxation

Taxation if policy is redeemed

If you need cash, you can redeem all or part of your life insurance policy.
A partial redemption is composed of the same proportions of principal and interest as the policy itself. Only the interest is taxable, and the policy-holder may choose either:

  • to pay tax at his or her personal income tax rate
  • or pay a withholding tax at one of the rates shown below:
     
Time policy has been held Tax rate applied to interest
Less than 4 years 35 %
Between 4 and 8 years 15 %
More than 8 years 7,5 %* After deduction of an annual allowance of €4,600 for a single person and of €9,200 for a couple that is taxed jointly and on all of the taxable household's policies.

* The 7.5% tax is withheld on the entire amount and the tax authorities will reimburse the amount corresponding to the abatement in the form of a tax credit.

Partial and total redemption is also subject to social-security taxes totaling15.5% (the rate in effect since 1 July 2012), except for with-profits fund policies, on which these taxes are withheld when interest is recorded.

Taxation in the event of death

A life insurance policy can enable you to exempt wealth from estate tax.
Upon the death of the policy-holder, the insurance company will pay the policy's death benefit to the designated beneficiary(ies). The taxes that a beneficiary will have to pay depends on the date the policy was subscribed, the date that payments were made into the policy and the age of the insured at these dates. If the beneficiary is a spouse or a recognised common-law partner, he or she will have no inheritance or other tax to pay.
 

The policy was subscribed after 20 November 1991 Premiums paid
Before 13 October 1998 After 13 October 1998
Premiums paid before age 70 Not taxed (4) 20% of the taxable death benefit below €700,000 and 31.25% for any amount above this (after application of an allowance of €152,500 per beneficiary)(2), except if a spouse or common-law partner(3) (4).
Premiums paid after age 70 Inheritance tax on the portion of premiums above €30,500(1) except if a spouse or common-law partner (3) (4). Inheritance tax on the portion of premiums above €30,500 (1), except if a spouse or common-law partner (3) (4).

Legal information and terms

  • (1) No inheritance tax is due on amounts paid after age 70 up to 30,500 euros or on gains generated by the compounding of all amounts paid into the policy. Inheritance tax is due only on premiums paid in above 30,500 euros.
  • (2) The 20% and 31.25% rates apply regardless of kinship with the insured.
  • (3) When the beneficiary is a spouse or common-law partner of the deceased insured (or a brother or sister, subject to certain conditions) the benefit paid by the insurer is no longer subject, regardless of its amount, to inheritance tax on premiums paid after age 70 and beyond 30,500 euros, or to the taxes that apply beyond 152,500 euros per beneficiary.
  • (4) The interest and income on life insurance policies that terminate upon the insured's death are subject to social-security taxes if they were not already subject to these taxes when the insured was alive.
  • All information concerning life insurance policies is understood to be within the limits of the provisions of said policies. A subscriber to a policy may cancel the policy within a 30-day cooling off period, subject to the terms specified in the life insurance policy and pursuant to the French Insurance Code.
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