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The essential :
- It is possible to subscribe to an unlimited number of life insurance policies;
- Taking out several life insurance policies reduces the counterparty risk and increases the guarantee limit;
- Opening several life insurance contracts can help to better manage the practical aspects of the estate.
Unlike PEA and PEA-PME, it is possible to combine several life insurance policies . Is there an advantage to subscribe to several life insurance policies?
Having multiple life insurance diversifies counterparty risk
As a life insurance policyholder, you have a claim against the insurer of your policy, who owns the securities in which your money is invested. If the insurer goes bankrupt, it may be unable to repay you the full amount invested. So you have a counterparty risk. This risk, if it exists, is nevertheless extremely low given the prudential regulations to which insurance companies are subject in France.
However, in this context, having several life insurance policies can improve diversification and reduce this counterparty risk. In addition, sums placed in a life insurance policy are guaranteed in the event of bankruptcy of the insurer up to 70,000 euros by the FGAP (Guarantee Fund of Insurance of Person) . Therefore, opening several life insurance contracts with several insurance companies can increase this guarantee ceiling to match your savings.
Do you have multiple life insurance policies to increase tax benefits?
The beneficial taxation of life insurance , earnings or inheritance applies to all contracts held, in their entirety. There are no tax advantages to holding multiple contracts. In particular, the rebate for life insurance over eight years, applies only once, on the sum of redemptions made in the year, all contracts combined.
On the other hand, it is possible to optimize the tax by making withdrawals and payments from one life insurance to another to benefit each year from the abatement, even if you do not need to consume the repurchased capital.
The opening of a new life insurance policy after 70 years
Life insurance makes it possible to reduce your inheritance tax . When the subscriber dies, premiums paid before age 70 in a life insurance policy and interest accrue to the named beneficiaries without going into the estate. Savings are therefore exempt from common law inheritance duties to be taxed at a favorable flat rate after application of a deduction of € 152,500 per beneficiary.
In contrast, premiums paid after 70 years are included in estate assets, but not interest earned, which is totally exempt from estate tax.
It is advisable to open a new life insurance at your 70th birthday, to make any new payment. This makes it easier to differentiate between the two estate plans, whether for the insurer or the tax department.
Learn more about the taxation of life insurance in the event of succession .
Is there more than one life insurance to ensure better management of beneficiaries?
In principle, the life insurance contract makes it possible to designate several beneficiaries in the conditions and proportions desired by the subscriber. To ensure your succession, it is not necessary to open a life insurance policy for each beneficiary, provided that the beneficiary clause is correctly written .
Nevertheless, having several life insurance contracts can keep the amounts paid to each beneficiary confidential.
No need to have multiple contracts to manage multiple goals
Most often, savers associate a contract or an account by savings project (study of children, purchase of a residence …). They manage the risk level according to the investment horizon by opening a life insurance contract per project.
Now, with Nalo you can integrate several projects within a single life insurance policy. Each project is assigned a portfolio whose risk level is calibrated according to the investment horizon. Within the same contract, you can for example have a low risk portfolio, dedicated to your precautionary savings, and another portfolio dedicated to the preparation of your retirement. For each project, we put in place a progressive security, which eliminates the risk of loss when you need your money.