Life insurance: euro-croissance and vie-génération contracts, 20% allowance and death-benefit levy raised to 31.25% above €700,000

Article 9 of the 2013 Amending Finance Act reformed life insurance. A euro-denominated contract can be converted, without the tax consequences of a surrender, into a contract including unit-linked or 'euro-croissance' commitments (diversification provision), provided at least 10% of the euro commitments are converted. 'Vie-génération' contracts, invested at least 33% in social or intermediate housing, SMEs and mid-sized companies and the social and solidarity economy, receive a 20% allowance on sums passed on at death, before the €152,500 allowance per beneficiary (Article 990 I of the General Tax Code). In return, the levy on death benefits rose from 25% to 31.25% on the taxable portion per beneficiary above €700,000, for deaths from 1 July 2014. A 0.32% tax payable by insurers applies to sums reallocated in these conversions.