What is assurance-vie?
French assurance-vie (life insurance) is a savings contract taken out with an insurer (directly or through a bank, broker or platform). The policyholder pays money in, which the insurer invests in one or more funds. The contract also names one or more beneficiaries in the event of death.
Key takeaway
Euro funds and unit-linked funds
The euro fund generally carries a capital guarantee from the insurer, under the terms of the contract. Unit-linked funds (unités de compte: funds, ETFs, SCPIs…) are not guaranteed: their value rises and falls with the markets, and capital can decrease.
Fees and access to savings
A contract may charge entry fees on payments, annual management fees, switching fees and the fees of each fund. They are stated in the contract documents. Savings generally remain available: a partial or total surrender (rachat) is possible, with tax consequences that depend in particular on the age of the contract.
Taxation and estate transfer
Only the gains included in a surrender are taxable, under rules that depend on the date of the payments and the age of the contract (a holding-period threshold gives access to an annual allowance). Transfer to beneficiaries follows a specific regime.
Attention
Tracking it in PortefeuilleZen
An assurance-vie contract is added as an account at the insurer. Each fund is a holding: the value of a euro fund is usually a published or manually entered value, while a listed unit-linked fund can follow the market. See also value and performance.