Changing the bank or broker without changing the insurance company. Referring to our questions from our readers section, Se7en questioned the possibility of transferring his life insurance contract to the same insurance company, a possibility that has been theoretically opened up under Pacte Act. Spoiler alert, the answer is yes, but….we’ll explain why.
Question from Se7en on May 3, 2022
Do you have any news regarding transferring a life insurance contract? Indeed, even if it is possible to transfer the contract while staying with the same insurance company, this is technically impossible. My broker tells me that he cannot take over an open contract in an online bank, even though it is managed by the same insurance company.
Se7en, your question is: Can I transfer my life insurance if I stay with the same insurance company? The question is legitimate and the answer is yes Se7en, you can transfer your life insurance contract to the same insurance company. Be careful, however, this transfer can be made if before! This nuance is crucial.
Possible transfer, but…
The Pacte Act went into effect in May 2019 and specifically governs the transfer of life insurance contracts without losing your tax priority…provided your insurance company accepts it.
In fact, half a million old contracts have been converted into newer, more modern contracts since the Charter Act came into effect. Moreover, in theory, it is actually possible to transfer the contract from one distributor to another (bank, broker, etc.) as long as you stay with the same insurance company. The France Assureurs consortium published a commitment to the market at this point in July 2021: each customer is free to choose their distributor. (…) The change of broker does not constitute an evaluation criterion for the acceptance or rejection of the transfer request requested by the client..
MoneyVox looked at the reality of the deal transfers in March 2022, when it came time to assess Macron’s reforms for the first five-year period.
Macron’s reforms: Is transferring life insurance really possible?
The verdict, summarized by Albert d’Anthoard, Head of Private Clients at Nalo: Yes, this web broker makes transfers from online banks or private banks, in particular, provided that the primary life insurance is managed by the same insurance company. But… in most cases it was. struggle to make it happenYou should have really laughed.
What happens to your investments in the event of a transfer?
To answer your question, Se7en, the answer will remain yes, but as shown below. However, here are some additional items to consider before any ordering. Thus, when we talk about transfer, we are not talking about transferring the support that is in your life insurance (Euro funds or units of account). In fact, it is a matter of transferring the quantities of these liquid supports.
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Thus, the saver has the possibility Convert an old contract Too expensive or poorly performing for a newer, cheaper and more profitable contract or offering more options for unit carriers (those that are riskier but better performing).
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Some tips before transferring your contract
You have every right to request that your life insurance be converted to a higher performance contract. However, since the transfer procedure is still to this day full of pitfalls, first ask yourself what are the reasons for the dissatisfaction.
Is the contract costing you too much? If the costs of payment, arbitration, or relating to various units of your account are too high and your insurance company’s other contracts are more beneficial, contact your insurance company. We can never repeat it enough, you can negotiate.
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The selected units of account are not earning you enough? You have the possibility to study the different units of account that can be accessed in your life insurance and to adjust the distribution of your investments. You may find your account there without requesting a transfer.
LIFE INSURANCE AND PER: ACCOUNT UNITS NO LONGER HAVE ANY SECRETS FOR YOU
What is the alternative if the transfer is refused?
You have the option to open as many life insurance contracts as you want. If you can’t transfer an old contract, you have a choice Keep it open and open another With another insurance company, more efficient and less expensive. You can also Close it and open a new one. Either way, you lose your tax filing.
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