Assurance Vie in detail

There are 2 kinds of funds:

- The EURO FUND: This is a secure fund which includes a capital guarantee (excluding costs linked to the contract and the cost of any guarantees present in the contract). Each year, interest is paid onto the contract on December 31st. The interest is definitively acquired.

- Investment funds : These are ready-made investment funds, invested in different asset classes such as shares, bonds or real estate. These supports can offer a higher return potential than the euro-fund, but in return present a risk of capital loss. The value of a fund may fluctuate upwards or downwards, depending in particular on the evolution of the financial markets, which may lead to a capital loss and therefore the loss of all or part of the capital invested.

- THE INITIAL DEPOSIT: this is the first sum of money you deposit when you take out the contract.

- AD HOC DESPOSITS: you invest money in your Assurance Vie policy at any time.

- REGULAR DEPOSITS: you define an amount and a frequency: monthly, quarterly, half-yearly or annually. The agreed sum of money is taken automatically taken by the insurer from your current account. You can stop these deposits at any time or change the frequency and amount without tax implications for the contract.

Fees set by the contract may apply to deposits. The contract may also provide for minimum amounts for deposits.

Contrary to popular belief, the capital of your Assurance Vie contract is not blocked. You are free to take some or all of the capital out of the contract at any time.

- WITHDRAWALS: You can make either partial or total withdrawals at any time, according to the conditions mentioned in the contract. You can choose to leave part of the capital invested and make a partial withdrawal. If you choose to withdraw the full amount of capital on the policy we speak of a total withdrawal, and this is equivalent to terminating the contract. Withdrawals are subject to specific taxation. Please contact us if you wish to make a withdrawal on your contract.

- ADVANCES: This is a loan that the insurer can grant you, and that you will have to repay. You pay no tax on these sums, only interest, and this allows you to draw on your contract without touching your capital, which continues to be invested. The cost of the advance is generally based on the market rates set in the General Regulations for advances.

- LIFE ANNUITY: You can convert your capital into a life annuity. The amount of the latter depends mainly on the age at which you apply for it. If it is reversible (for the benefit of your spouse for example), the pension will be of a lower amount. Your other heirs will not be entitled to anything. The life annuity is subject to income tax and social security contributions for a fraction of its annual amount calculated according to the age of the annuitant when the annuity is set up. Please note that not all life insurance contracts provide for a life annuity.

IN THE EVENT OF WITHDRAWALS AND PAYMENTS AT TERM, only the interest (referred to as “income” in your contract) is subject to income tax, according to the taxation in force. After 8 years, an annual allowance (for all Assurance Vie and capitalization contracts combined) is applied to interest (€4,600 for a single person or €9,200 for a married or PACS couple subject to joint taxation).

The products are also subject to social security contributions.

IN THE EVENT OF DEATH, your beneficiaries are exempt from inheritance tax within the limits set by the regulations (articles 757 B and 990 I of the General Tax Code).

In addition, social security contributions are deducted at the end of the contract (full withdrawal, death of the member) in the event of partial withdrawal and in the event of total disinvestment of the fund in euros by arbitration and at the expiry of the guarantee of the growth/eurogrowth type. Social security contributions amount to 17.2%, under current regulations. You can find here the details of the taxation applied to the life insurance contract.

Depending on the contracts, you can choose different management modes to help you manage your contracts.

3 MANAGEMENT MODES

SELF MANAGEMENT You choose how to distribute your investment between the different funds available in the Assurance Vie contract, according to your needs, requirements, your investor profile and the planned holding period.

ADVISED MANAGEMENT You benefit from the services of an expert who helps you set up an investment strategy. It relies on a monthly investment committee which analyses market trends. He defines the best management strategies for you, based on your personal investment profile, and contacts you regularly to provide you with personalised recommendations.

ARBITRATION MANDATE* You wish to invest in the markets but without dealing with the management or monitoring of your contract, you can opt for delegated management, if the contract provides for it. Via an arbitration mandate, it allows you to entrust the management of part of your Assurance Vie contract to a team of experts from a management company.

* Depending on the terms of your contract. Ask your adviser about the conditions, accessibility thresholds and rates for the Advised Management service and the Arbitration Mandate. The performance of the part of the Assurance Vie contract managed within the framework of the Advised Management or the Arbitration Mandate is not guaranteed. The investor alone bears the financial risks resulting from the operations carried out.

The floor guarantee, or additional guarantee in the event of death, intervenes in the event of death. If the capital acquired should be less than the amount invested (excluding fees on instalments and any partial redemptions), the difference is guaranteed.

In other words, in return for a contribution, this guarantee makes it possible to cancel all or part of the amount of losses linked to investments in units of account, depending on the evolution of the financial markets, on the death benefit.

By securing the capital transmitted to your loved ones in the event of death, you will be more serene.