Life insurance in France (assurance décès)

Planning for the future (and, unfortunately, death) can feel overwhelming.

Whether you’re an expat adjusting to life in France or a local navigating the complexities of French financial products, you’ve probably wondered what would happen to your loved ones if something happened to you.

But life insurance isn’t just about money; it’s about peace of mind.

The good news?

French life insurance, known as assurance décès, offers more flexibility and tax advantages than you might expect. It can also play a key role in inheritance planning, covering debts, or even act as a long-term savings tool.

Want to know the best part?

Once you understand the basics, you’ll easily be able to compare life insurance policies.

In this post you’ll learn:

What life insurance (assurance décès) actually means in France

Who really needs coverage and why

How policies work

The differences between common types of contracts

How taxes and costs are calculated, especially for expats

What is French life insurance?

In France, life insurance is referred to as assurance-vie.

A life insurance policy ensures that if the policyholder dies, their chosen beneficiaries receive a payout (which is pre-determined when you buy the policy).

Generally, the beneficiaries use the payout to settle outstanding debts, and cover general expenses while they get back on their feet.

According to the latest data, over half of French residents own a life insurance policy.

Who needs life insurance in France?

Life insurance in France is not just for parents or retirees.

From securing your family’s future to safeguarding a business or managing inheritance, the right policy provides lasting peace of mind.

Below are the key groups who often benefit most from coverage.

Group	How life insurance provides support
Parents	Helps cover daily living expenses such as childcare, education, rent, and university fees.
Primary earners	Replaces lost income so a partner can manage household bills and living expenses without hardship.
Business owners	Ensures business continuity by making funds available in the event of the owner's passing away.
Seniors without savings	Pays for funeral and final expenses, easing the financial stress on loved ones.
Adults with debts	Settles loans or mortgages, preventing unpaid debts from being passed on to family members.
Expats	Many foreign residents are not fully covered by the French pension or survivor system. A life insurance policy fills this gap, protecting spouses and children.
Estate planners	French inheritance laws are complex. Whole-life policies often cover estate taxes and provide liquidity, helping heirs avoid the need to sell assets.

How does life insurance work in France?

1. Choosing a policy

The insured person (the one whose life is covered) signs a contract with a life insurance company. At this point, they choose:

the amount of coverage (the sum that will be paid out if they pass away)
the beneficiaries (the people who will receive the money)

2. Paying premiums

The insured person pays regular premiums (monthly, quarterly, or yearly) to keep the policy active. The cost depends on factors like their age, health, and the amount of coverage chosen.

3. The insured event

If the policyholder dies while the contract is in force, the insurance company activates the guarantee.

4. Payout

The insurance company pays the agreed sum of money directly to the beneficiaries named in the contract. These beneficiaries are usually family members, dependents, or other chosen individuals.

5. How the payout can be used

Beneficiaries can use the money to:

Cover daily living expenses and maintain their standard of living
Support dependents such as children or a spouse
Repay outstanding loans or mortgages left by the insured person
Cover immediate costs, such as funeral and burial expenses
Provide financial security in the short and long term

6. Taxes

Life insurance in France operates within a distinct legal and tax framework. In many cases, the payout is not considered part of the deceased person’s estate, making it more tax-efficient for beneficiaries. (Exact details depend on the age of the insured and the amount invested.)

What type of life insurance do you need?

When you think about life insurance, you’ll usually come across three main types. Each works in a different way, and the right choice depends on your goals, budget, and family situation.

Let’s break them down:

Term life insurance

Covers you for a set period (often 10, 20, or 30 years).
If you die during that time, your chosen beneficiary gets a payout.
Once the term ends, coverage stops unless you renew.

This option is usually the most affordable.

For example, at Feather, a 25-year-old expat in France will pay around €10.73 monthly for €300,000 coverage lasting 20 years.

It’s often used to protect a mortgage or children’s education until they’re financially independent.

Whole of life insurance

Covers you for your entire life, as long as you keep paying premiums.
Guarantees a payout whenever you die.
Premiums are higher because of the lifelong guarantee.

In France, whole life policies can sometimes include a savings component, allowing you to build cash value over time.

A “cash value” refers to the savings component of whole life insurance policies. It’s a sort of bank account that grows slowly over time as you keep paying your premiums. You can sometimes borrow against it or even withdraw part of it while you’re still alive.

In France, this is often seen as a way to combine protection (the insurance payout) with a small investment or savings element. This makes them attractive for estate planning or leaving an inheritance, but they’re less flexible and cost more.

Critical illness insurance

Pays out a lump sum if you’re diagnosed with a serious illness like cancer, stroke, or heart disease.
It’s not the same as life insurance, but many policies let you add it as an add-on.

For expats in France, this can be especially important. While the French healthcare system is robust, there can still be high out-of-pocket costs or a loss of income during prolonged recovery periods. This type of cover adds financial stability during a health crisis.

How to get life insurance in France

Obtaining life insurance in France is generally straightforward; however, the process and requirements vary depending on the type of policy and your individual circumstances.

You can purchase life insurance from several providers:

Banks: Many French banks sell assurance décès as part of their financial services
Insurance companies offer a wider range of products, often with the option to select add-ons, such as disability insurance.
Brokers: compare multiple insurers on your behalf to help you find the best fit

Because contract terms, fees, and fund options can vary significantly, it is crucial to compare offers before signing.

Most policies require a health questionnaire, and higher coverage levels may need a medical exam. For example, if you apply for €1,000,000 in term life coverage, the insurer might request blood tests or a doctor’s report.

So, how does the process of buying French life insurance typically unfold?

Compare providers: Research different life insurance companies and choose the one that matches your financial situation and coverage needs.
Complete the questionnaire: Fill in details about your health, lifestyle, occupation, and smoking habits. Your answers help insurers determine the right premium.
Set your insured sum: Determine how much financial support your dependents would need if you were to pass away, taking into account debts, funeral costs, and future family expenses.
Choose the policy length: Pick the duration of your contract based on factors like your children’s age, education plans, or outstanding loans. Many policies last between 10 and 30 years.

How much does French life insurance cost?

Several factors determine how much you’ll pay:

Age and health: Younger, healthier applicants always get lower rates
Type of policy: pure risk (term) is cheaper than savings-linked contracts (assurance vie)
Coverage level and term length: higher payouts and longer contracts increase costs
Lifestyle: smoking, extreme sports, or hazardous jobs can drive premiums up

For example, A 28-year-old non-smoker will pay around €13 per month for €200,000 in term life coverage. The same plan could cost over €120 per month for a 50-year-old smoker.

With that said, life insurance doesn’t have to break your budget.

Here are four proven ways to save:

Choose term coverage if you just want protection (for example, covering a mortgage or supporting dependents).
Compare multiple providers. Prices can vary by 30–40%, so don’t take the first offer. Shop around.
Maintain a healthy lifestyle. Non-smokers and people with good health metrics pay significantly less.
Check employer-based group insurance. Many companies in France offer employees discounted life insurance plans. Alternatively, your union or local professional association might.

How much death benefit do you need?

The “perfect” death benefit is about balancing two things:

Protecting your family if something happens to you
And avoiding premiums that eat up your budget.

Let’s walk through a practical framework that works for most people (and highlight the extra costs expats in France should keep in mind):

A classic guideline is to cover 5 to 10 years of your annual income. Another approach is to make sure any major debts (like a mortgage or personal loan) would be paid off in full.

As an example, let’s say you earn €40,000 a year and have a €150,000 mortgage. In that case, covering around €350,000–€400,000 could be enough to replace your income and clear debts.

The catch is:

It’s just a starting point, not a final answer.

Your actual needs may vary, because expats often face financial challenges locals don’t.

Here are three common ones:

Education costs: International schools or universities abroad can add tens of thousands of euros.
Repatriation and relocation expenses: Including the cost of transporting remains, if you wish to be buried in your home country, covering the moving and living back home for your family, etc.
Cross-border support: Financial help for dependents who live outside France.

These costs can add up quickly, so be sure to factor them in when setting your coverage.

Are death benefits taxed in France?

This is one of the most frequently asked questions by expats about life insurance.

The short answer: sometimes.

The tax treatment depends on when you took out your policy, your age at the time of premium payments, and the relationship of the beneficiary to you.

Here’s a quick breakdown:

For policies funded before age 70, each beneficiary enjoys a €152,500 tax-free allowance as of 2025. Above that, a flat tax of 20% up to €700,000 applies, then 31.25% beyond.
For all premiums paid after age 70, you get a global allowance of €30,500 across all beneficiaries. Anything above this is subject to normal inheritance tax rules.

There are exceptions in place for your spouse or civil partner, who generally are fully exempt from taxation, regardless of amounts.

Alternatives to life insurance

Life insurance is popular in France, but it’s not the only way to protect your family or manage inheritance.

Depending on your situation, you might benefit from other options (or even might want to combine them with life insurance).

Prévoyance plans

Many employers in France include prévoyance (group protection plans) as part of their benefits package.

These often come with a death-in-service payout, typically equal to two or three years of salary.

Before you buy your own policy, check what your employer already covers. This helps you avoid paying twice for similar protection.

Note that generally, your protection is cancelled when you leave the company.

Investing

You can also build financial resilience without insurance by using:

Savings accounts for emergency funds or short-term needs
Pension plans to secure retirement income for you and your family
Investments (stocks, bonds, or real estate) for long-term growth

These give you control over your money, but it takes a considerable time to build up the equivalent of a life insurance payout. It’s a smart move to get a temporary term life insurance policy while you build up your nest egg.

Donations and property planning

If your main goal is estate planning, French inheritance law offers other ways to transfer wealth:

Donations (donations en avance d’héritage) let you pass assets to heirs during your lifetime with tax benefits.
Property ownership structures (like joint ownership) can simplify inheritance and reduce taxes.

These tools can complement or replace life insurance depending on your financial goals, but are only useful when combined with the services of a tax professional.