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John Forkin

Question:

We are retired and have just moved to France to live and we have been advised to take out a life insurance (assurance vie) as means of savings. I have had one quote so far and the rate of interest is approx. 2 1/2 % which seems to be the norm. But I am concerned about the charges/fees. Could you advise me. Also can you advise if me and my wife can have more than one life insurance each?
Thanking you.
Best regards
John Forkin

by John Forkin on 15 Mar 2015
Des Cooney

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Answer:

Dear John,

Many thanks for your question. I hope that you are enjoying life in France.

Assurance Vie products are designed as tax efficient investments for French residents. They can however have limitations in terms of the range of funds on offer and therein the potential investment return.

In terms of charges, insurance companies may seek to charge on entry to their products; there is also often an annual % administration charge. Each company has a different approach. It is advisable therefore to ask for a breakdown of charges from the provider.

It is possible to have more than one life assurance each. In doing so you would not ‘put all your eggs in one basket’, either with a single insurer, or with assurance vie as the sole form of investment

French tax rules allow you to open an Assurance Vie in any EU country and still obtain the same tax benefits; individual investors are expected to make the appropriate declarations in France. We have found that the International Financial Services Centre in Dublin, Ireland offer life policies that are particularly suitable for French residents. These policies meet the French tax requirements, whilst benefiting from more flexible investment structures.

Please contact me directly if you would like further information on this.

I hope that this helps

Kind Regards,
Des Cooney

by Des Cooney on 11 Jun 2015

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