How do I get my money back?
Life insurance is a long-term investment, but savings are generally always available.There are three ways to recover the capital invested: all at once, in several, or by transforming them into a life annuity, it is that is, income paid until death.
The taxation of life insurance is more interesting after 8 years, but nothing prevents you from recovering savings before.
Three exit doors
Three ways out exist in most life insurance contracts:
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the Total « redemption » corresponds to a definitive closure of the contract. You withdraw all your capital at once. It is a decision without return and if you want to save again in the context of life insurance, you will have to open a new contract, then wait eight years to optimize the tax system. Closing a contract by total surrender can also cause lose inheritance benefits, acquired thanks to the seniority of your payments.
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the partial redemption allows part of the capital to be withdrawn, while letting the balance grow. It is a very practical solution to supplement income during retirement, or to face an unforeseen expense. The money that remains invested in the contract retains all the tax advantages acquired from the outset.
The insurer asks you to tick a reason for paying you the funds (donation, taxes, additional income, work, etc.)
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the transformation into a life annuity consists in exchanging one’s savings – or part of them – for a regular income, paid by the insurer until the death of the insured. This is a radical solution, because the savings are no longer yours. In return, you have the certainty of receiving this income as long as you are alive, even if you break longevity records.
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