Assurance Vie: The Cornerstone of Wealth Planning in France

"It looks like life insurance, acts like an investment, and behaves like a tax shelter —

but only if you know how to use it."

If you're a British expat living in France, or planning to move, you may have heard of Assurance Vie. But what actually is it? And why do so many financially savvy families in France rely on it?

This article pulls back the curtain on the essentials of Assurance Vie, without drowning you in technicalities. Because when structured correctly, it becomes one of the most powerful planning tools available to you.

What Is Assurance Vie?

Assurance Vie (literally "life insurance") is a uniquely French financial wrapper. Legally it's a life insurance policy; practically, it functions as a flexible long-term investment account with important tax and inheritance advantages.

Inside an Assurance Vie, you can hold a range of investments:

  • multi-currency investments

  • euro-denominated savings funds

  • equities

  • multi-asset strategies,

  • discretionary portfolios.

But the real magic comes from how France taxes and treats this structure.

Why Is It So Widely Used?

For those who understand how to use it, Assurance Vie offers:

  • Favourable tax treatment on withdrawals (especially after 8 years)

  • Control over succession, letting you name beneficiaries and bypass parts of the French forced-heirship rules.

    Crucially:

    • Premiums paid before age 70 benefit from a €152,500 allowance per beneficiary, completely free of French succession tax.

    • Premiums paid after age 70 benefit from a separate €30,500 global allowance, with gains still tax-free outside the estate.

    For many families, this alone makes Assurance Vie a cornerstone of modern succession planning.

  • Investment flexibility

    You can access diversified investment options within a regulated, tax-recognised structure — and in some international contracts, even retain your existing discretionary manager.

Not All Policies Are the Same

Some policies are ideal for straightforward needs: a French-domiciled contract with simple investment options and relatively low entry points (€10,000 or so).

Others are designed for more complex or international situations: high-value portfolios, multi-currency exposure, broader fund access, and clearer treatment under UK or cross-border estate laws.

⚠️ The most important decision isn’t just opening an Assurance Vie — it’s choosing the right one.

Why Advice Matters

Assurance Vie can be elegantly simple… or dangerously misunderstood.

  • Poor investment choices

  • Incorrect structure

  • Misaligned residency or tax planning

  • Wrong or incomplete beneficiary clauses

  • Overlooked reporting obligations (especially for non-French contracts)

Any of these can dilute the benefits that make the wrapper so valuable.

"In the right hands, Assurance Vie is a strategy. In the wrong hands, it's just a policy."

That’s where expert guidance becomes essential — because once an Assurance Vie is in place, restructuring it can be both costly and restrictive. While we can often take over the agency of an existing contract to help manage it more effectively, the best outcomes always start with the right advice from the beginning.

What's Next?

If you're holding significant savings in cash or ISAs, or you want to future-proof your estate planning in France, Assurance Vie may be worth exploring. You can learn more in our guide to ISA taxation in France

At MiraClair Wealth, we help clients structure these vehicles to work in harmony with their long-term goals, cross-border residency, and family needs.

We won't just sell you a contract — we build a strategy around it.

Important Information


The information on this page is for general guidance only and does not constitute personal financial, tax, or investment advice. Tax treatment depends on individual circumstances and may change in the future. Cross-border planning should always be reviewed with a qualified professional who understands both UK and French regulations.

If you are considering making any changes to your pension or investments, we strongly recommend seeking personalised advice.

📍 Ready to learn more? Book a call to see if Assurance Vie fits your picture.

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