Life insurance: what you must do before December 31


Life insurance, PER… Pay attention to the choices you make in terms of savings. As Planet explained to you, certain financial investments are more attractive at 50 than at 40, at 60 than at 70. This is for example the case of the PER, which can be opened at any age, but which imposes strict conditions for withdrawals before the retirement age. Life insurance, for its part, remains the favorite investment of the French, even if it has lost its luster in recent years.

The most attentive savers know that you only have a few weeks left to transfer your life insurance to your PER under the best conditions. Indeed, until December 31, 2022, you will benefit from significant tax advantages and it would be silly to miss out. What are the transfer conditions? Who can do it? We take stock with Olivier Rull, co-founder of Caravel, a new generation 100% digital supplementary pension.

Oliver Rull. It’s really a personal choice, but you have to take two things into consideration when deciding. The first: what is the amount that will be transferred and what is its proportion in relation to the overall financial wealth? If this amount is greater than 10% of financial assets, then it is advisable to transfer it. The second element is to know, of course, if we opened a PER or not.

Oliver Rull. It is always recommended to open a PER, but above all not to place all your savings in it. It is important to have a vision of what is liquid or not and the PER is not. We come to block a small part of our savings, but it is an extremely well-made product.

Oliver Rull. If you make the transfer before December 31, then you benefit from very attractive tax allowances and benefits:

If we don’t make the transfer before December 31, we won’t be able to benefit from the tax benefit, since it will be over. In 2023, there will still be a possible tax reduction via the PER, but not the advantage of the tax abatement on life insurance.

Oliver Rull. To transfer your life insurance, you must have held the contract for more than eight years, be more than five years from retirement and pay back all the sums on the PER. The process is very simple: first you release the money on your life insurance, then you pay it into a PER before the set date. We therefore make a request to release the money from the establishment that hosts the life insurance, which will make the payment. Then, at the chosen PER provider – if you don’t have one yet – you ask to open a contract and you pay the money.