Can we get the money back from life insurance?

An unforeseen event (costly operation, loss of job, help to a loved one, etc.) has changed your plans and you need money. You then think about recovering the money from your life insurance. Is it even possible? If so, by what means? Find out all the answers in this article.

Get your life insurance money back: it’s possible

” Life insurance is a long-term savings solution and is the preferred financial investment of the French. Usually taken out with the aim of securing an income for old age, life insurance allows you to benefit from attractive tax advantages. from 8 years of subscription. Contrary to popular belief, the funds of a life insurance are not blocked and it is quite possible to get the money back when needed, at any time.

The insurer does not have the right to deny you a withdrawal (or “buy-back”) of these savings but may in certain cases impose a minimum amount to be left on you. You can therefore have all or part of your life insurance capital when you want, whatever your age and without having to justify yourself.

To touch the savings of his life insurance, there is three different ways, to be chosen according to your needs and situation.

Total redemption of his life insurance

Total redemption is a procedure for definitive closing of the life insurance contract. It is a question here of recovering all of his savings, after depositing a complete file with his insurer. The capital will be returned to the applicant within 30 days after receipt of his request. However, the total buyout has some disadvantages and is an irreversible decision with no possible return. So, if you want to save with life insurance again in the future, you will have to take out a new contract and wait another 8 years for optimized taxation. So think carefully before proceeding with the total redemption of your life insurance funds, the final closure of which may also cause you to lose the inheritance benefits (tax exemptions) acquired over the years of payments.

Recover life insurance money through partial redemption

Alternative to total redemption, partial redemption life insurance is an intermediate solution to recover part of the funds invested without terminating your contract. It is thus possible to recover a fraction of your capital to be able to face an urgent need while maintaining the tax advantages on the rest of the invested sums that you have acquired since the subscription to your life insurance. As with the total surrender, the deadline for recovering the funds is 30 days after receipt of the request by the insurer. The partial redemption can be one-off or scheduled:

  • the one-off partial redemption : the subscriber recovers the desired amount at once;
  • the scheduled partial buyback : the contractor chooses to receive his money in several installments, in the form of regular installments.

The transformation of life insurance savings into life annuity

This is the third option that allows you to recover the money from your life insurance: life annuity. This is a radical solution which consists in transforming the invested capital into regular income paid by the insured until the death of the subscriber.

By choosing the life annuity to recover his money, the subscriber therefore accepts to give up his savings in exchange for a regular income which will make it possible, for example, to face regular expenses or to supplement an insufficient retirement pension. With the life annuity, the insured alis guaranteed to receive his payments as long as he is alive, without age limit. The amount of the pension is calculated depending on the total capital invested and the age of the insured.