France Assureurs wants to facilitate generosity through life insurance

France Assureurs wants to facilitate generosity via life insurance France Assureurs and France Générosités, the trade union of associations and foundations appealing to donations, have signed a partnership to facilitate generosity of French people via life insurance. This, “for a period of one year renewable”, aims to “facilitate the designation of non-profit organizations as beneficiaries of life insurance contracts”. In the event of death, subscribers to life insurance can indeed choose to donate part of their assets, in particular their life insurance, to one or more non-profit organizations. The sums paid to associations recognized as being of public utility are also exempt from inheritance tax.

To disseminate this practice, the two organizations have drawn up a practical guide, “which lists all the rules to be observed when designating the beneficiary of a contract”, to better communicate with the general public. The idea being that France Assureurs and its members make it known to policyholders. “We are very proud that the insurance industry is committed to promoting life insurance as a tool for giving. It is a tool perfectly suited to generosity,” said Florence Lustman, President of France Assureurs, when signing the partnership.

“Donors often need a trusted third party to support them in their approach. Insurers can be this trusted third party,” explained François Dupré, managing director of the ARC foundation for cancer research and treasurer of France generosities. According to France Assureurs, only 6.5% of individuals use life insurance to make donations. However, according to the study on the gifts and intentions of the French people carried out in 2020 by France generosities, 19% of respondents indicate that they do not know that it is possible to transfer their assets via a life insurance contract and 46% say they “quite badly even very badly informed”.

In total, of the 8.5 billion euros represented by the generosity of the French in 2019 according to the national panorama of generosity 2021, liberalities, that is to say donations of heritage, represented only 1.3 billion. euros. In particular, 24% of these donations are life insurance, ie approximately 300 million euros. Life insurance outstandings reached 1.876 billion euros at the end of 2021 for 18 million policyholders and 38 million beneficiaries.

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