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 is it really? And why do so many financially savvy families in France rely on it?
This article pulls back the curtain on the basics of Assurance Vie — not with technical overload, but with enough clarity to know what questions to ask next. Because with the right setup, it can be one of the most powerful tools in your financial plan.
What Is Assurance Vie?
Assurance Vie (literally "life insurance") is a uniquely French financial wrapper. It's technically a life insurance policy, but functionally it's used as a long-term investment account with key tax and estate planning advantages.
Within an Assurance Vie, you can hold a range of investments: euro-denominated savings funds, equities, multi-asset strategies, even discretionary portfolios. But the real attraction lies in how France 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
Investment flexibility, often within a regulated and tax-recognised environment. In some cases you can continue to work with your discretionary manager within the wrapper too.
But here's where things get interesting: not all Assurance Vie contracts are created equal.
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.
Here's how the two types compare:
French vs International Assurance Vie: Key Differences
Why Advice Matters
Assurance Vie can be elegantly simple or dangerously misunderstood.
Poor fund choices, the wrong structure, or failure to align with residency and tax rules can strip away its advantages. Beneficiary clauses are often mishandled. And the reporting requirements — especially for international contracts — require experience.
"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?
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 discovery call to see if Assurance Vie fits your picture.
