The Life Insurance and Tax Cuts

By Alexa Smith

The contract-survivor annuity is intended to ensure, in case of death of the insured, the payment of a lump sum or an annuity to his child with a disability that prevents him from exercising a professional activity or to acquire an education if less than 18 years. Other recipients of this type of contract are concerned since 1 January 2004. It is either a lineal relative or collateral to the third degree of the insured, that person whether or not a dependent or a dependent of the insured and unrelated affinity binding. An annuity contract-survival is subject to any limit.

The contract savings disability is a life insurance contract that lasts at least six years. It allows the payment of a lump sum or an annuity to a policyholder provided that it is reached at the conclusion of the contract, a disability that prevents him from exercising a profession.

For an annuity contract or a survival-savings contract disability, the rate of tax reduction is set at 25% of annual premiums paid with a ceiling of 1525 euros plus 300 euros per child.

Note that this limit applies to all contracts entered into by members of one household tax.

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