Is it possible to subscribe to several life insurance policies? The answer is yes ! Unlike other savings products, such as the Livret A or the PEL, it is possible to have as many life insurance contracts as desired, without limit.
This feature is a real advantage because it is possible to have several projects in parallel . For example, a life insurance contract can be taken out with the aim of:
Opening life insurance by project offers better visibility but also investments better suited to your needs. As a reminder, life insurance can be paid out in the form of capital or an annuity . This approach also facilitates the management of different contracts.
Having several life insurance contracts also means having several beneficiary clauses. Their management can be centralized with a notary. Thus, there is no longer any need to go to each of the insurers for any changes to be made to the various contracts.
Good to know: if several life insurance contracts are taken out, it is possible to benefit from the investment guarantee for each contract. The system is provided by the Personal Insurance Guarantee Fund (FGAP).
Taking out several life insurance contracts: what are the advantages?
Thus, it is possible to take out life insurance by project. It is also wise to choose one contract per beneficiary. The beneficiaries concerned are therefore not informed of the amount that the others will receive, until the death of the subscriber.
In addition, the distribution of capital is freer and succession is facilitated. The formalities for receiving the capital following the death of the contract subscriber are less lengthy. Indeed, it is not necessary to wait for all the beneficiaries to have sent the supporting documents for the capital to be paid.
Opening several life insurance contracts also makes it possible to limit risks, vary investments and diversify investments . Profits are maximized thanks to a better distribution of assets or capital over several contracts. A policyholder may choose to combine more profitable but riskier investments with safer but less profitable investments. In the same spirit, he can choose investments with payment of capital and others with payment of an annuity.
The diversification of contracts finally allows you to benefit from a greater choice of management methods (free, managed or profiled).
However, having several life insurance contracts also has some disadvantages. It is important to be well organized and follow each contract taken out. As stated, using a notary facilitates the management of life insurance contracts. It is also possible to combine different contracts with the same insurance company.
Transfer of life insurance: what taxation?
Life insurance is an advantageous transmission tool and therefore an excellent way to prepare for your estate. The amounts paid benefit from a tax deduction and are not subject to inheritance tax .
Depending on the age of the subscriber, the payments made benefit from a more or less interesting reduction.
For payments made before age 70, the allowance of €152,500 per beneficiary.
For payments made after age 70, the allowance is €30,500. This allowance is unique and therefore shared by all the beneficiaries.
By subscribing to several life insurance contracts, it is possible to optimize their management and benefit from the best taxation.
Life insurance buyback: what taxation?
Life insurance has advantageous taxation, because in the event of total or partial redemption, only the capital gains realized are taxed.
But be aware that life insurance is a savings product that operates over the long term. The taxation of life insurance becomes more advantageous after 8 years of savings . Indeed, a tax deduction is provided. This allowance amounts to €4600 for a single person and €9200 for a couple.
