Life insurance FAQ
Insurance FAQ
What are the risks excluded from life insurance in case of death?
Checked may 19, 2016 – Directorate of legal and administrative information (Prime Minister)
The 2 following risks are excluded and make insurance without effect:
- Suicide of the insured during the 1st year of the contract
- Beneficiary condemned for having voluntarily given death to the insured or the policyholder (in general, the Subscriber is also the insured). However, if other people have been designated as beneficiaries, they can collect the capital provided for in the contract.
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Insurance code: articles L132-1 to L132-27-2
Suicide (article L132-7), beneficiary sentenced for having voluntarily given death to the insured (article L132-24)
Can I change the beneficiary of a life insurance contract?
Checked may 19, 2016 – Directorate of legal and administrative information (Prime Minister)
It depends on if the person designated as beneficiary formally accepted his nomination.
The beneficiary clause allows you to designate the person or persons who will receive a capital upon the death of the insured (generally, the Subscriber is also the insured).
The policyholder may change the beneficiary at any time. It informs the insurer by sending a simple letter.
At reception, the insurer establishes an amendment changing the beneficiary clause in the original contract.
A formally accepted his nomination.
The Subscriber cannot change the beneficiary.
Acceptance of the beneficiary is irrevocable if it was made in one of the 2 following procedures:
- Tripartite agreement between Subscriber (which is usually also the insured), insurer, and beneficiary accepting
- Agreement between Subscriber and beneficiary accepting, notified to the insurer
divorce does not result in the revocation of the husband (is) accepting beneficiary.
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Insurance code: articles L132-1 to L132-27-2
Designation (article L132-8) and change the beneficiary (article L132-9)
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Civil code: articles 263 to 265-2
Impact of the divorce (article 265-1)
Must be reported to tax income from a life insurance contract?
Checked 09 March 2016 – Directorate of legal and administrative information (Prime Minister)
Income tax: statement revenues in 2015 2016
25 Apr. 2016 – Directorate of legal and administrative information (Prime Minister)
The income tax rules are subject to change (finance Act 2017 and amending finance laws).
The information contained in this page are up to date for the declaration of revenues in 2015 2016.
This page will be changed in 2017 for the return of income of 2016.
Depends on the date of subscription of the contract and the duration of the contract at the time of the withdrawal.
Contract signed between 1983 and 1997 (25 September)
Revenues are totally or partially exempt according to the date of payments.
Your insurer is responsible for calculating the taxable amount of redemptions.
Moreover, regardless of the date and duration of the contract, the life insurance products are exempt from income tax when the end of the contract resulted from one of the following situations:
- Dismissal
- The early retirement
- Disability (2nd or 3rd category)
- Liquidation
These situations can be the Subscriber of the contract or his spouse/partner of Pacs.
To complete your tax return, you can consult the following documents:
- Explanatory notes (in particular the notice values income and investment income)
- Brochure practice of the income tax.
- Evidence presented by payers (form IFU) institutions
If a pre-filled amount is incorrect, you must fix or complete it.
Note:
income from a life insurance contract are subject to social contributions (CSG, CRDS)
Contract signed after September 25, 1997
| Duration of the contract at the time of the withdrawal | Taxation of income of the life insurance contract |
|---|---|
| Less than 4 years | Tax at progressive rates of tax on the income, or option, to the 35% withholding. |
| Between 4 and 8 years | Tax at progressive rates of tax on the income, or option, to withholding of 15%. |
| More than 8 years | General case:
Annual allowance of €4 600 (€9 200 for a couple). The surplus is built to the scale of the income tax, or, if you chose the levy tax, imposed at the rate of 7.5%. If you have chosen sampling, the abatement is rendered to you as tax credit. Contracts equity funds: Exemption |
Moreover, regardless of the date and duration of the contract, the life insurance products are exempt from income tax when the end of the contract resulted from one of the following situations:
- Dismissal
- The early retirement
- Disability (2nd or 3rd category)
- Liquidation
These situations can be the Subscriber of the contract or his spouse/partner of Pacs.
To complete your tax return, you can consult the following documents:
- Explanatory notes (in particular the notice values income and investment income)
- Brochure practice of the income tax.
- Evidence presented by payers (form IFU) institutions
If a pre-filled amount is incorrect, you must fix or complete it.
Note:
income from a life insurance contract are subject to social contributions (CSG, CRDS)
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General tax code: article 125-0-A
Taxation of life insurance contracts
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BOFIP-tax n ° BOI-RPPM-RCM relating to the taxation of income from movable capital
Life insurance: what does say in a medical questionnaire?
Checked may 19, 2016 – Directorate of legal and administrative information (Prime Minister)
You must answer all the questions as they are asked.
In the light of your responses, the insurer may ask you to perform medical examinations. They will be the subject of a confidential medical report by the medical officer of the insurer.
According to your reported medical risk, the insurer may make the following decisions:
- Without special condition
- Ensure with exclusions related to the consequences of disease or events
- Ensure with a surcharge
- Refuse to insure
A false statement on your part if your bad faith is established, cause the nullity of the contract. The insurer then pays back you capital into account on the contract.
In the event of omission or misrepresentation, negligence or mistake, 2 situations are:
- Before disaster. The insurer may terminate the contract or maintain it with application of an increase in premium.
- Disaster. The insurer may apply a reduction of capital to be paid in proportion to premiums owed would be paid.
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Insurance code: L112-1 to L112-10 articles
Written questionnaire prior to conclusion of the contract (article L112-3)
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Insurance code: L113-1-L113-17 articles
Obligation to reply (article L113-2), intentional misrepresentation (section L113-8), false statement by negligence or mistake (article L113-9)
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Insurance code: articles L132-1 to L132-27-2
Refund of capital into account in the contract (article L132-18)
What is the legal interest?
Checked June 27, 2016 – Directorate of legal and administrative information (Prime Minister)
The legal interest is an amount of money owed to the creditor in the event of late payment by the debtor. The rate of legal interest is fixed every six months by order of the Minister responsible for the economy.
It is used to calculate the following:
- interest on the amounts to be paid in the event of delay of payment ordered by a court,
- interest on a loan, if the contract does not provide the percentage rate (APR) of the loan.
Legal interest should not be confused with the contractual interest or the escalation clause, which are distinct elements of legal interest.
Interest due by the debtor are simple when they are only calculated on the capital. They apply to amounts owed for less than 1 year.
Interest is capitalized (or compound) when they are added to the initial capital to produce their own interests. This funding may be provided for in the contract or requested from the judge. They can be used for more than 1 year loans.
| Year | Rate |
|---|---|
| 2016 (2nd semester) | 4.35% if the creditor is an individual
0.93% for other creditors (Professional, etc.) |
| 2016 (1st half) | 4.54% if the creditor is an individual
1.01% for other creditors (Professional, etc.) |
| 2015 (2nd semester) | 4.29% if the creditor is an individual
0.99% for other creditors (Professional, etc.) |
| 2015 (1st half) | 4.06% if the creditor is an individual
0.93% for other creditors (Professional, etc.) |
| 2014 | 0.04% |
| 2013 | 0.04% |
| 2012 | 0.71% |
| 2011 | 0.38% |
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Civil code: 1905 to 1914 articles
Legal interest (General principles)
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Monetary and financial code: L313-2-L313-3 articles
The legal interest rate
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Monetary and financial code: article-D313-1A
Calculation of the statutory interest
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Decree of 24 June 2016 for the fixing of the rate of legal interest
Fixed rates for the 2nd half of 2016
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Order of December 23, 2015 relative to the fixing of the rate of legal interest
Fixed rate for the 1st half of 2016
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Order of June 24, 2015, setting the rate of legal interest
Fixed rates for the 2nd half of 2015
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Order of December 23, 2014, setting the rate of legal interest
Fixed rate for the 1st half of 2015
References
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Insurance code: L112-1 to L112-10 articles
Information contained in the insurance policy (article L112-4)
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Insurance code: L113-1-L113-17 articles
Obligations of the insurer and the insured
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Insurance code: articles L132-1 to L132-27-2
Conditions related to the subscription (articles L132-1 to L132-5), renunciation (article L132-5-1), reporting requirements (articles L132-5-2 to L132-5-3), beneficiaries (articles L132-8 to L132-19)
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Insurance code: R132-2-R132-5-7 articles
Mentions of the life insurance contract (article R132-4)
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Insurance code: A132-1-A132-9-3 articles
The Subscriber information and pricing
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Civil code: articles 1109 to 1122
Consent of the beneficiary (art. 1121)
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Civil code: 1123-1125-1 articles
Legal capacity to subscribe a contract (article 1123)
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Civil code: articles 1165 to 1167
Consent of the beneficiary (art. 1165)
More information?
Insurance bank savings service info
To inquire
Information about procedures and contractual relations in the field of insurance, Bank and savings
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Monday to Friday from 8 h to 18 h.
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By mail
ABE Service Info
61 Street Taitbout
75436 Paris Cedex 09
By e-mail
Via the contact form
To inquire
Information about procedures and contractual relations in the field of insurance, Bank and savings
By phone
0 811 901 801
Monday to Friday from 8 h to 18 h.
Purple or Plus number: cost of a call to a landline number + paid service, from a fixed phone or mobile
To know the rate, listen to the message at the start of call
By mail
ABE Service Info
61 Street Taitbout
75436 Paris Cedex 09
By e-mail
Via the contact form
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