French Assurance Vie

French Assurance Vie

How to grow your savings in France

If you are looking to save money, find the best rates and to understand how the system works – this email will help you do precisely that. You may also be pleasantly surprised by what Swiss Life can offer you and your family in France.

The Swiss Life group started in Switzerland in 1857  and today is one of Europe’s leading companies in financial solutions and general insurance. Indeed, it is ‘A’ rated by Standard & Poor’s in recognition of its financial strength. Here are a few facts and figures you may be interested in:-

  • 1,360,000 Swiss Life customers
  • 4 billion € of assets handled as at 31/12/2016
  • 2,360 employees

 

From experience, I have found that  most people are not aware of the different savings and policies that insurance companies and banks have available.

I don’t know if you have noticed but in the past 7 or 8 years banks often ask to quote for your home, car or health insurance and sometimes they even ask if you would like a mobile phone or an alarm.

Why do banks offer insurance policies?

Savings and mortgage rates are at a historical low and as a result banks have had to diversify their product range in order to find other revenue streams.  Here is an example of some savings rates:

  • The LIVRET A: 0.75% with a maximum investment of 22,950€
  • The LDD: 0.75% with a maximum investment of 12,000€,  same for LEP: 1.25% with a maximum investment 7,700€ (not available to all)
  • The PEL: 1% maximum investment of 61,200€ (This must be left four years on the account otherwise you lose ALL your interest if you withdraw your savings and is only available for customers that wish to buy property).

 

However, because the industry is heavily regulated, for the protection of the customers, it means that banks can only offer these services through insurance companies, for example Credit Agricole work with an insurance company called Pacifica.  It’s a similar situation for savings, too. Banks that offer the most popular saving in France– a product called Assurance Vie (created by insurance companies) – are also obliged to work with insurance companies. For example, BNP Paribas and Banque Populaire work with Cardiff Insurance.

As a result this has a cost impact for you.  With an insurance company, management fees will always be the same amount and entry fees are low, but this is not the same with the banks.

That’s why we think that Swiss Life can offer the best deal for people who are looking to save money and invest for the future of themselves and their families.


What do we offer:-

  • An Assurance Vie with low entry fees
  • Guaranteed, fixed-sum management fees
  • A very safe Capital Guaranteed investment with a minimum of 2%* in return, or more depending on the amount invested (Booster/Bonus over a certain amount) (*2016 performance).
  • 2%* on a medium risk (*2016 performance)
  • You can take some or the whole amount of your investment out whenever you want and prior to maturity… most people don’t know that.
  • The Assurance Vie also acts as a will, so you choose your beneficiaries and when you pass away it will automatically be transmitted to your beneficiaries. If you subscribe before the age of 70 they will be entitled to 152,500€ per person and they will have no tax to pay. If you are over 70 when you subscribe the allowance is 30,500 € with no tax to pay. If the amount is over the two allowances you will be taxed the standard rate of inheritance tax in France.

 

Example:

You have 3 children and a house worth 300,000€ plus 450,000 € on your account.

The inheritance allowance is 100,000€ per child with no tax to pay.

If you don’t have an Assurance Vie the 450,000 € on account will be added to the value of the house making a total of 750,000 €.

The first 300,000 € are not taxable thanks to the allowance for your children from the government, however they will have to pay tax on the other 450,000 € remaining!

However, if you have an Assurance Vie and you subscribed before the age of 70 then your children receive 150,000 € each with no tax to pay either.

So with an Assurance Vie from 750,000 € in total, your children will pay 0.00€ tax.

That is why the Assurance Vie is the most popular saving account in France. It is used often, and it is the best type of saving by far in France. You choose the investment you want: very safe with capital guaranteed, safe, medium or high risk. It is also the best as regard to taxes and for inheritance transmission, no need to pay for a solicitor or a Notaire, everything is calculated and done by Swisslife Private Bank and they will contact all the beneficiaries directly.


How we can help

Laurent and I shall be pleased to visit you to discuss the products and services we have to offer. We will talk to you individually but if there are several people where you live who are interested in talking to us, such as other friends and family members, we can arrange to visit you all over a couple of days. That’s no problem.

We hope that you have found this information useful. Please do not hesitate in contacting us by simply clicking on the link below for an appointment and we’ll be in touch.

Kindest  Regards,

 

Peter MUSTO

SWISSLIFE Assurance et Gestion de Patrimoine

27 rue Esprit des Lois

33000 Bordeaux

05 56 28 94 64