Life insurance after 70 in France

After the insured’s 70th birthday, the taxation of life insurance changes in France, but only for premiums paid from that date onward: the regime that applies depends neither on age at death nor on when the contract was opened, but on the date of each payment. Understanding this mechanic avoids two common mistakes: believing that a contract opened before 70 entirely escapes the new regime, or giving up on paying into one after that age when life insurance keeps advantages of its own.

Why life insurance taxation changes at 70

The French tax code sets out two distinct regimes for transmitting a life insurance payout on the insured’s death, and the switch from one to the other happens at the date of each payment, not the date the contract was opened nor the age reached at death.

Article 990 I before 70, article 757 B after

Premiums paid before the insured turns 70 fall under article 990 I of the French tax code: each designated beneficiary benefits from an allowance of 152,500 euros on their share of the capital, beyond which a flat tax of 20%, then 31.25%, applies. Premiums paid after the 70th birthday fall under article 757 B: a global allowance of 30,500 euros, shared between all beneficiaries, applies to the amount of the premiums, and the surplus joins the regular estate.

A single contract can carry both regimes

A contract opened before 70 and funded after that age does not switch entirely to the article 757 B regime: only the premiums paid after the threshold are subject to it, while earlier premiums remain under article 990 I, even if death occurs well after 70. This distinction, often overlooked, is why the date of each payment matters, not the age at death.

Can you still subscribe or pay in after 70

No rule prevents opening a new life insurance contract after 70, or continuing to pay into an existing one. Insurers remain free to set their own subscription conditions (a health questionnaire depending on the underlying funds, a minimum amount), but there is no legal age limit on subscribing or paying in.

What changes after 70 is only the tax regime applied on death to premiums paid from that date, as detailed above. The ability to subscribe, to pay in, to choose between euro funds and unit-linked funds, or to request a withdrawal, stays the same before and after this threshold.

The 30,500 euro allowance and inheritance tax beyond it

The 30,500 euro allowance set out in article 757 B has three features that clearly set it apart from the one that applies before 70.

• A global allowance, not an individual one. It is shared between all designated beneficiaries, in proportion to their share of the capital, whereas the 152,500 euro allowance that applies before 70 is assessed separately for each beneficiary.
• It applies to the premiums paid, not to the interest. Interest and capital gains generated by these premiums, whatever their amount, remain entirely exempt from inheritance tax.
• It is shared across all contracts. When the insured holds several contracts, the 30,500 euro allowance applies only once, across all premiums paid after 70 on all contracts combined.

Beyond this allowance, the excess portion of the premiums is added back to the taxable estate and taxed under the inheritance tax scale that applies to the relationship between the insured and the beneficiary, without benefiting on top of that from the usual inheritance allowances, such as the 100,000 euro allowance between a parent and a child: the 30,500 euro allowance stands in as the specific allowance for this regime. The surviving spouse and the registered partner (PACS) remain, for their part, entirely exempt from inheritance tax on these sums, as on the rest of the estate.

Reviewing the beneficiary clause after 70

The beneficiary clause determines who receives the capital on the insured’s death, outside the statutory rules of inheritance. It deserves a regular review, and even more so after 70, a period when payments are often split between one regime and the other.

A few points worth checking in the clause’s wording: do the designated beneficiaries still match the current family situation (marriage, divorce, a birth, the death of a beneficiary); is the split between beneficiaries consistent with the intended transmission goal, given that the 30,500 euro allowance is shared between them in proportion to their share; and has the clause been the subject of an acceptance by a beneficiary, which, since the 2007 reform, prevents the insured from amending it or making a withdrawal without that beneficiary’s consent. Any change to the clause must be made through a signed amendment with the insurer or through a will, never through an informal letter.

Withdrawal taxation does not depend on the insured’s age

A frequent point of confusion: the rules set out above concern only the insured’s death and the transmission of the capital. A partial or full withdrawal made during the insured’s lifetime after 70 follows exactly the same rules as at any other age: the flat tax or an election for the progressive income tax scale before the contract’s 8th anniversary, then an annual allowance and a reduced rate after that threshold. The guide on life insurance taxation details these withdrawal rules in full, which do not vary with the insured’s age, only the contract’s age mattering.

Alternatives and complements for passing on wealth after 70

Life insurance is not the only transmission tool available after 70, and it is often combined with other solutions depending on the family and wealth situation.

• A gift, in particular a gift-sharing (donation-partage), allows wealth to be passed on during one’s lifetime under allowances specific to each family relationship, renewable every 15 years, independent of the life insurance allowance.
• Splitting ownership (gifting bare ownership while keeping the usufruct) allows an asset to be passed on while still receiving its income or using it.
• Spreading savings across several contracts and wrappers keeps its value after 70: combining life insurance, bank savings and, where relevant, property through SCPI property funds helps adjust wealth diversification to each person’s liquidity needs and transmission goals.

Before any decision, a full review of the estate with a professional remains the only way to check that the chosen combination fits the actual family and tax situation, since inheritance rules can vary with the number of heirs, the presence of a spouse or registered partner, and the total amount transmitted. The choice of the contract itself, upfront, remains decisive: the guide on choosing a life insurance contract details the criteria to check before subscribing or transferring an existing contract.

Frequently asked questions