Life insurance: disability savings to compensate for low income

People with disabilities can benefit from a tax advantage linked to the subscription of a life insurance contract: they can deduct from their income tax 25% of the payments within the limit of €1,525 paid per year. , plus 300 euros per dependent child. The maximum tax reduction amounts to €381.25 (25% of €1,525) for a person without children. For a person with two children, the payment ceiling is €2,125 (€1,525 + [300 x 2]), i.e. a maximum reduction of €531.25 per year.

Six years minimum holding

“The tax benefit is conditional on keeping the contract for a minimum of six years.recalls Pauline Lefel, head of Île-de-France partnerships of the National Union of Savings and Provident (Unep). In addition, the subscriber must be suffering from a disability preventing him from exercising a professional activity under normal conditions of profitability. » It is therefore necessary to check that your degree of invalidity and your working conditions meet the conditions of the contract.

A life insurance contract (almost) like any other

In practice, disability savings contracts are life insurance contracts like any other. Their taxation is identical, both during the life of the contract and in the event of exit, in annuity or capital, or in the event of the death of the subscriber. However, they benefit from another tax advantage: social security contributions on the fund in euros are only levied in the event of redemption, and not each year as is the case for a conventional contract. “And in the event of succession, on the death of the subscriber, they will not be deducted”says Pauline Lefel.

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