You can only hold a livret A , an LDDS or even a single PEA and PEA-PME , but you can hold as many life insurance contracts as you wish. What is the point of opening several contracts? Many reasons argue in favor of multi-holding: heritage, tax, management or pricing.
Why open a contract per project or per beneficiary?
A life insurance contract can be intended to finance a specific project. But you can have several projects of various kinds, with more or less long investment horizons. Preparing for a real estate project or financing your children’s studies will be shorter-term projects than preparing for your retirement or transferring your assets.
Opening a contract dedicated to a single project whose investment horizon will be adapted to it can prove to be judicious in terms of the choice of management supports. The allocation, possible trade-offs and risk profile of the contract will depend on the related project.
Personalizing the management of a life insurance contract according to the needs of the designated beneficiary(ies) may also be appropriate. We can of course designate several beneficiaries per contract, but the option of one contract per beneficiary can respond to a desire for discretion so that everyone is unaware of what is attributed to the others.
Open a new life insurance contract for its management characteristics
Other motivations may lead you to opt for a new life insurance contract: the attractiveness of the diversity of the offer , the disparity in the performance of Euro funds or units of account (UC) . You keep your old contract – for its tax anteriority or its more favorable old regime – and choose a new product with the characteristics of supports or choice of management options corresponding more to your current needs.
A better return on support in euros, a wider range of CPUs, lower management or payment fees ( online banks offer free payments), access to a management mandate, these are all reasons who can decide to change your contract for your future payments.
Withdrawals: how to optimize them for tax purposes?
This reason is undoubtedly the most significant in view of the successive tax reforms of recent years. Holding several life insurance contracts offers the possibility of choosing in priority the one that will allow the most tax-efficient partial withdrawal. A simulation allows you to:
With the introduction in 2018 of the single flat-rate levy or PFU at 30% (including 12.80% in respect of income tax) applicable to gains on payments made since September 27, 2017, open a new Life insurance makes it possible to avoid a mix of taxations and therefore a more readable follow-up. It should not however be forgotten that the opening of any new contract supposes the start at zero of a tax meter for the duration of detention.
Why open a new life insurance contract for payments after age 70?
Life insurance continues to present assets for the transmission when one carries out payments after 70 years. But the tax system is then very different, and quite complex. It may therefore be wise to devote a new contract to them.
As a reminder, for payments made after age 70 , only the part of the premiums paid to beneficiaries that exceeds 30,500 euros is subject to inheritance tax (the scale depends on the relationship between the deceased subscriber and the beneficiary). In addition, the entire amount of winnings is exempt, which can be a significant advantage over time.
Limit risks with several deposit guarantees
Some savers may want to multiply life insurance contracts or more precisely insurers in order to take advantage of the guarantee several times in the event that an establishment experiences difficulties.
As a reminder, the amount guaranteed by the FGAP (Guarantee Fund for Personal Insurance) for sums placed in life insurance is €70,000 per person, for all contracts held with the same insurer.
