Life insurance transfer: everything you can do in 2026

Do you find your life insurance contract too expensive, underperforming, or lacking modern investment options? The idea of transferring it to a better offer is tempting. But is it really possible, and under what conditions? The answer is more complex than a simple "yes" or "no".

In short, transferring a life insurance policy from insurer A to insurer B, as you would with a current account, is generally not possible without losing its main advantage: tax seniority. However, there are ways to modernize your policy without starting from scratch, mainly by staying with the same insurer. This guide details the options, the pitfalls to avoid, and practical alternatives.

Can you really transfer a life insurance policy? The short answer

No, you cannot freely transfer a life insurance policy from one insurance company to another while keeping its tax opening date (its "seniority"). This full portability does not exist in France.

However, the law provides for two specific situations that resemble a transfer and allow you to keep this major tax advantage:

1. Internal transfer (Loi Pacte): You can transfer your capital to a newer, better-performing policy, but only within the same insurance company.
2. "Fourgous" transfer: You can convert an old single-support policy (invested only in euro funds) into a multi-support policy (with unit-linked funds), again while staying with the same insurer.

Any other operation is essentially a termination (a "full surrender") of your current policy, which triggers taxation of your capital gains and makes you lose tax seniority. You then start from scratch with a new policy.

Why want to transfer your life insurance policy?

Savers considering a transfer are often driven by legitimate reasons. Older policies, especially those taken out through a bank branch, can have significant drawbacks:

• High fees: Contribution fees (sometimes 3% or more), high annual management fees on euro funds and unit-linked funds, switching fees...
• Disappointing returns: The return rate of the euro fund may be far lower than that of the best policies on the market.
• Limited investment choice: A narrow range of unit-linked funds (UC), lack of more modern options such as ETFs (trackers) or unlisted investments (private equity).
• An outdated management interface: Transactions that require a trip to a branch or sending paper letters.
• A change in your relationship with the advisor or the desire to manage your savings more independently.

What the Loi Pacte allows for internal transfers

Since the Loi Pacte came into force in 2019, modernizing life insurance policies has become much easier. Today, it is the best way to evolve your savings without a tax hit.

The principle is simple: you ask your insurer to transfer the entire capital from your current policy (policy A) to another policy it markets (policy B).

• Main advantage: You keep the tax seniority of policy A. If you opened it 10 years ago, your new policy B will also be treated as being 10 years old.
• Essential condition: The transfer must be done with the same insurance company.

Be careful not to confuse the bank and the insurer

This is the most common pitfall. Your policy may be distributed by Crédit Agricole, but the actual insurer may be Predica. It may be sold by Boursorama, but the insurer is Generali. The transfer is only possible to another Predica or Generali policy, regardless of who distributes it. The insurer’s name is always indicated in your policy’s terms and conditions.

This operation is an opportunity to access policies with lower fees, more unit-linked choices, and better management options (managed portfolios, etc.). The insurer has every reason to accept in order to keep your savings.

The Fourgous transfer: an increasingly rare option

The "Fourgous" amendment, dating back to 2005, was the first mechanism to authorize a form of transfer. Its scope is now more limited.

It allows you to convert a single-support policy (invested 100% in euro funds) into a multi-support policy (which contains euro funds and unit-linked funds).

• Advantage: Tax seniority is preserved.
• Conditions:
  • Stay with the same insurer.
  • Move from a single-support policy to a multi-support policy.
  • Invest part of the capital in unit-linked funds (the percentage depends on the insurer).

This option mainly concerns very old policies, because most life insurance policies opened in the last 15 years are already multi-support.

[image alt="Comparative diagram explaining the difference between an internal transfer that preserves tax seniority and a full surrender that loses it."]

Transfer, surrender, switching: the comparison table of options

To see things more clearly, it is essential to distinguish between the different possible operations and their consequences, especially regarding tax seniority.

Fees, taxation, and seniority: what to check

Before making any decision, analyze the financial impact of the operation.

• Fees: In principle, a transfer does not generate specific fees. However, check the terms of the new policy: can contribution fees apply to the transferred capital? Are annual management fees truly lower?
• Taxation: The goal is not to trigger unnecessary taxation. In the event of a full surrender of a policy less than 8 years old, your capital gains are by default subject to the Prélèvement Forfaitaire Unique (PFU) of 12,8% (or, by option, the progressive income tax scale), plus 17,2% in social contributions. After 8 years, you benefit from an annual allowance on gains of 4 600 € (9 200 € for a couple). Losing this advantage by closing an old policy is often a bad deal.
• Tax seniority: This is your policy’s treasure. It is the date of the first payment that matters. Keeping a policy older than 8 years ensures flexibility and lighter taxation on your future withdrawals.

Special cases to know

Transfer after age 70

Contributions made after age 70 benefit from different inheritance taxation (a total allowance of 30 500 € on premiums paid, then taxation under inheritance tax). An internal transfer (Loi Pacte) is neutral: it keeps traceability of payments made before and after age 70. By contrast, a full surrender followed by a new subscription after age 70 would mean that 100% of the new capital would be subject to that regime, which is generally unfavorable.

Impact on inheritance

An internal transfer preserves your beneficiary clause intact and the tax advantages related to inheritance (an allowance of 152 500 € per beneficiary for premiums paid before age 70). If you opt for a full surrender and opening a new policy, it is essential to draft a new beneficiary clause carefully.

Changing banks

If you change banks, you are not required to close your life insurance policy. If it is a policy from the bank’s subsidiary insurer, ask about internal transfer possibilities. If it is a policy from an independent insurer, you can keep it and manage it directly with them or through another distributor.

Transferring life insurance to a PER

The Loi Pacte also created a bridge to transfer savings from a life insurance policy to a Plan d'Épargne Retraite (PER). This operation is complex and subject to strict conditions (in particular, being more than 5 years from retirement). It offers a doubling of the tax allowance on life insurance capital gains. This is a specific wealth-planning strategy that must be considered carefully.

Expert tip

Before focusing on a transfer, start with the simplest optimization: switching. Many savers let their capital stagnate in a low-yield euro fund even though their policy, even an old one, provides access to attractive unit-linked funds. A simple switch can sometimes boost your savings without any complex steps.

The checklist before contacting your insurer

1. ✅ Identify the insurer: Find the name of the insurance company (not the distributing bank) on your policy.
2. ✅ List the weaknesses: What are your concrete complaints about your current policy (fees, returns, choice of holdings)?
3. ✅ Confirm the opening date: What exactly is your policy’s tax seniority? Is it more or less than 8 years old?
4. ✅ Explore internal transfers: Contact the insurer and ask for the list of policies eligible for a "Loi Pacte" transfer.
5. ✅ Compare offers: Analyze in detail the terms (fees, available holdings, etc.) of the replacement policies offered.
6. ✅ Assess alternatives: If an internal transfer is not possible or not satisfactory, is a partial surrender to open another policy in parallel more sensible than closing it?
7. ✅ Model the tax impact: As a last resort, if you are considering a full surrender, calculate the amount of tax on capital gains you will have to pay.

FAQ on life insurance transfers

Is it possible to transfer a life insurance policy?

Yes, but in a regulated way. A transfer that preserves tax seniority is only possible by staying with the same insurance company, either via the Loi Pacte (to modernize a policy) or via the Fourgous amendment (to convert a single-support policy into a multi-support policy). A transfer to another insurer implies closure and loss of the tax advantage.

What are the fees to exit a life insurance policy?

You need to distinguish two things: "exit fees" provided for in the policy, which are very rare, and taxation on capital gains, which is systematic when you make a surrender (withdrawal). For a surrender, gains are subject to social contributions (17,2%) and income tax (either a flat levy of 12,8% for a policy under 8 years old, or 7,5% after an allowance for a policy older than 8 years).

What are the pitfalls of life insurance?

The main pitfalls to avoid are:

• Stacking fees (contributions, management, switching) that can eat into performance.
• Risk of capital loss on unit-linked funds (UC), which are not guaranteed.
• Policy complexity and the lack of transparency of some offers.
• A poorly drafted beneficiary clause, which can lead to conflicts during inheritance.
• Confusing the distributor (bank) with the insurer, which can block a transfer request.

Does life insurance inheritance go through the notary?

In general, no. Life insurance is considered to be "outside the estate". The capital is paid directly by the insurer to the designated beneficiary(ies) in the clause, without going through the notary or being included in the inheritance. However, the notary’s involvement often becomes necessary when premiums were paid after the insured turned 70 (because they are subject to inheritance tax beyond an allowance), if the beneficiary clause is imprecise ("to my heirs", for example), or in the event of a dispute.