French savers poured money into life insurance at a pace not seen in two decades during the first half of 2026, according to industry federation France Assureurs, which announced the figures on July 30.
Net inflows, meaning deposits minus withdrawals, reached 36.5 billion euros over the six-month period. That figure exceeded the comparable result from the first half of 2025 by 8.9 billion euros. Monthly contributions hit a record of 19.3 billion euros in June 2026 alone.
Two types of contract
Life insurance appeals to a wide range of savers because it serves multiple purposes, including building savings, generating supplemental income, preparing for retirement and passing capital to relatives. There are two main contract types.
A single-support contract invests entirely in a euro-denominated fund where the principal is guaranteed at all times, though returns tend to be low. A multi-support contract splits contributions, at the saver’s discretion, between guaranteed euro funds, such as government or corporate bonds, and unit-linked products tied to financial markets, including equities, bonds, investment funds and property. Unit-linked products carry a risk of capital loss but can also generate higher returns, according to the French government’s economics website. The appropriate mix depends on an investor’s risk tolerance, which should be defined with a bank or insurer.
Key advantages
Contracts can be closed at any time and savers may hold as many contracts simultaneously as they wish, the Finance Ministry noted. Capital held in euro funds can be withdrawn at any time, taking fees into account, with no limit on amounts. Contributions can also be made freely, without any ceiling.
Savers can choose how their money is managed: independently, using tools to secure positions; through discretionary management, where a financial professional handles all allocation decisions within agreed risk limits; or through advisory management, where professional recommendations are made but the saver decides whether to follow them.
The product also carries a favourable tax treatment. A flat levy applies to interest at the point of withdrawal. If the withdrawal occurs at least eight years after the contract is opened, the rate is 24.7 percent on amounts below 150,000 euros; withdrawals made earlier are taxed at 30 percent. An annual allowance of 4,600 euros, or 9,200 euros for married couples, applies to gains on contracts held for fewer than eight years.
Succession rules
On the death of the policyholder, funds paid to a named beneficiary fall outside the deceased’s estate. This allows up to 152,500 euros per beneficiary to be transferred without inheritance tax, regardless of the relationship between the policyholder and the beneficiary.
If the beneficiary is a spouse, civil partner or, under certain conditions, a sibling, no inheritance tax applies at all, even on premiums paid after the policyholder turned 70, the Economics Ministry said.
For other beneficiaries, the tax treatment varies by age of the insured. On premiums paid before age 70, the state takes 20 percent up to 700,000 euros and 31.25 percent above that. On premiums paid after age 70, a single allowance of 30,500 euros applies across all beneficiaries regardless of the total amount.
