If you live in France, assurance vie is a financial product that you should consider. Many people don't even know what this financial product is or how it can benefit them. Let's go over the aspects that make assurance vie an important thing to consider.

What Is It?

Assurance vie acts as a financial product that is utilized as a tax-efficient wrapper that can contain up to multiple investments. This is a French investment product that can provide people with tax advantages that they would not be able to get otherwise.

One of the largest benefits to this investment product is you can allow funds to grow without being taxed by French income or capital gains tax. This gives you the freedom to let your accounts roll without having to worry about annual taxes or payments.

Another very interesting part of this product is that there is no limit on how much money can be invested this way, which can provide a lot of freedom to those with large sums of money that they want to invest.

When you want to withdraw money from this product, the authorities will consider the amount being withdrawn and how much of the withdrawal was returns of the original money you invested. There was a recent tax change made based on when your premiums were paid.

Inheritance Tax

If you receive an inheritance, putting this money into an assurance vie can give you some additional advantages. Technically, an assurance vie can live outside of your estate, ensuring that you can leave money to beneficiaries without it being tangled up in the French legal process.

There is one unique rule in that if you haven't turned 70, you can assign as many beneficiaries as you want to the plan with each one receiving tax-free money up to a certain amount. If you are over 70, they cannot receive as much money that is tax fee, but they still can receive a smaller tax-free amount.

As you can see, when it comes to investment products, an assurance vie is something to consider if you live in France. Being able to roll investments for a long period of time without having to worry about taxes being taken out can give you an advantage to help you grow your money faster. Depending on your age, you can also make sure that your family is taken care of by understanding the amounts that can be taken out tax-free.