All You Need to Know About Life Insurance Transfer: Procedures and Conditions to Follow

By 2025, managing one’s wealth often involves a precise understanding of life insurance contracts, a flagship product that pools over 1900 billion euros in assets in France. However, if you are considering switching contracts, it is essential to understand how the life insurance transfer works. This topic, at the heart of debates among consumers, banks like BNP Paribas, Crédit Agricole, Société Générale, insurers such as Groupama, AXA, Allianz, Generali, or mutual societies like Macif, remains complex. The 2019 PACTE law marked a significant step forward by opening certain pathways for transfer, but under strict conditions. In theory, the transfer aims to allow savers to benefit from more advantageous contracts without losing their fiscal seniority—an important point given that some contracts are over eight years old and offer attractive tax allowances.

This system does not always resemble a simple change of institution, as the transfer often involves staying with the same insurer and obtaining their approval. Fees, timelines, and procedures are often perceived as obstacles, and experiences vary depending on whether you are dealing with players like La Caisse d’Épargne, LCL, or specialized distributors. The debate around the portability of life insurance is, in fact, a recurring issue—balancing savers’ expectations with insurers’ strategies, which must adapt to new rules without compromising their business models. Therefore, it is crucial to thoroughly understand the rules, opportunities, and limitations before initiating a transfer to optimize your savings with confidence.

What is a life insurance transfer and what are its specificities in 2025?

Understanding the nature of a life insurance transfer is essential to avoid errors that could impact your taxes or the returns on your investment. Unlike other savings products such as the Housing Savings Plan or the Equity Savings Plan, a life insurance contract cannot be freely transferred from one insurer to another. The contract legally belongs to an insurer, and only they can propose a transformation of the contract through the PACTE law. This transformation can involve a partial or full transfer of the contract to a more recent one but remains attached to the same insurance company.

This specificity is critical because the tax advantages related to the contract’s duration are preserved only if the transfer remains within the same insurance company. For example, a policyholder with a contract from Groupama or AXA will retain their fiscal rights if they choose to transform their contract within the same entity. Conversely, a total change to another insurer such as Allianz or Generali requires closing the first contract and opening a new one, which could trigger taxation on capital gains at a less favorable rate.

Specificities of the transfer in 2025

Since the May 2019 PACTE law, the possibility of transferring a contract without restrictive conditions has been expanded. Thus, even a multi-support contract with unit-linked components can be transformed into a new contract, which was previously not possible (the Fourgous transformation was limited to single-support contracts in euro funds). However, this transfer still depends on the insurer’s acceptance. In 2025, the landscape remains thus contrasted:

• ➡️ Transfer is still limited to the initial insurance company.
• ➡️ It is possible to enhance your contract with new options, such as incorporating a more modern managed account service.
• ➡️ Institutions like BNP Paribas, Société Générale, or Crédit Agricole often highlight these transformations to retain their clients.
• ➡️ Transfer outside the distributor is not guaranteed and may sometimes involve lengthy procedures.

It is also important to note that if the insurer refuses the transfer, they must provide reasons, but there is no legal obligation for them to do so. This power imbalance remains generally favorable to insurers, which can sometimes limit the actual options available to policyholders. By reviewing your annual information statement, you can verify whether transfer possibilities and conditions are mentioned.

Key Element	Description	Involved Actors
Nature of the transfer	Transformation of an existing contract into a newer one within the same insurer	Groupama, AXA, Allianz, Generali, BNP Paribas, Crédit Agricole
Tax retention	Preservation of tax benefits related to the contract’s seniority	Policyholders with contracts > 8 years
Conditions	Mandatory acceptance of the transfer by the insurer	All companies
Limit	Impossible transfer between different insurers	Banks and various brokers

The essential steps to carry out a life insurance transfer

Transferring life insurance, if you want to preserve your tax advantage and benefit from a better contract, does not happen spontaneously. Here is a clear, step-by-step guide to the process.

1. Check your contract’s eligibility

Before taking any steps, you should review your annual information statement from your insurer. This document should indicate whether or not a transfer is possible. If clear information is lacking, it is recommended to call or schedule a meeting with your banking advisor (Société Générale, LCL, Caisse d’Épargne, etc.). It is essential to know that only contracts opened within the same company can be transferred. Also, make sure your contract does not have high exit fees that could affect your operation’s performance.

2. Choose the new suitable contract

The goal of the transfer is to optimize your wealth; carefully reviewing recent offers from the insurer is a crucial step. New contracts often offer:

• 📊 Managed account options to facilitate diversification.
• ⚖️ Reduced management fees compared to older contracts.
• 📈 Access to new unit-linked supports (stocks, thematic funds, etc.).

For example, BNP Paribas or Macif have developed contracts with greater flexibility and transparency. It is therefore wise to choose a contract that better matches your investor profile, investment horizon, and risk tolerance.

3. Submit a formal transfer request

Once you have selected the new contract, you must send a written request to the insurer. If you are changing distributor but remain with the same insurer (for example, moving from Caisse d’Épargne to a partner fintech), it is often necessary to send a registered letter with acknowledgment of receipt. This letter must explicitly indicate your desire to carry out a transfer while maintaining your fiscal seniority.

Be aware that this step can be delicate because the insurer is not obliged to accept. In case of refusal, request a written explanation. Some companies like Allianz or Generali adopt more flexible policies, but this is not a universal rule.

4. Monitor the deadlines and confirm

In theory, if the transfer is accepted, administrative management takes from a few days to several weeks, depending on the contract’s complexity. When you stay with the same distributor, this period can be quick, sometimes less than two weeks.

If you change distributor, expect longer delays, potentially several months, with multiple follow-ups necessary. Note that the insurer must keep you informed but is not obliged to respect a maximum duration. Attention is required, especially in cases of urgent financial needs.

Step	Actions	Estimated Delay	Practical Tips
1. Eligibility verification	Consult the annual information statement, contact the advisor	A few days	Check for any exit fees
2. Select the new contract	Review the insurer’s proposals	1 to 2 weeks	Compare fees and supports offered
3. Formal request	Registered letter with AR if changing distributor	Variable	Regular follow-up with the insurer
4. Transfer confirmation	Monitor the transformation and receive amendments	A few days to several weeks	Keep all official documents

Why maintaining your fiscal seniority is crucial during a transfer?

The main advantage of a life insurance transfer is to preserve the tax benefits associated with the contract’s seniority. In France, life insurance benefits from a privileged tax regime when the contract exceeds 8 years. Not understanding this concept can be costly for the policyholder.

The importance of fiscal maturity

The notion of fiscal seniority refers to the length of time a contract has been active. After 8 years, you benefit from an annual allowance on the income from life insurance contracts:

• 💰4,600 € annual allowance on capital gains (withdrawals from individual contracts)
• 👫 9,200 € for a couple filing jointly

Maintaining this benefit during a transfer is fundamental. Closing a contract and opening a new one with another insurer resets this count, which can lead to higher taxation on future gains at withdrawal.

Transfer versus simple closure

If you do not pay attention to this difference, you risk resulting in a disguised redemption. A transfer carried out properly allows you to retain the contract’s seniority. Conversely, a redemption and reinvestment elsewhere are no longer considered transfers, and the favorable tax benefits no longer apply.

• ⚠️ Loss of seniority and fiscal benefits
• ⚠️ Possible taxation on old capital gains
• ⚠️ Difficulty replenishing a new contract while benefiting from advantages

Institutions like LCL or Macif often emphasize this point to their clients to avoid costly tax errors. This also encourages keeping existing contracts or opting for an official transfer.

Situation	Taxation	Consequences
Transfer within the same insurer	Retention of seniority	Tax advantages preserved
Closure and opening	Loss of seniority	Full taxation on capital gains

What are the fees and other costs associated with a life insurance transfer?

Many policyholders hesitate to proceed with a transfer fearing hidden costs. In reality, legislation and insurer commitments regulate this issue without completely eliminating it.

Possible fees to consider

The transfer often involves modifying your contract within the same company. In such cases, fees are usually minimal or nonexistent. Nonetheless, do not overlook:

• 💸 Specific management fees if the old contract has more expensive conditions.
• ✉️ Administrative fees related to processing the file.
• 🔄 Penalties if exit clauses are included in your contract.

For example, certain contracts offered by Société Générale or Caisse d’Épargne may impose costs for transferring to a new internal contract, although such cases remain relatively rare. This is often a subject of negotiation at the time of request.

How to negotiate these costs?

It is recommended to thoroughly review the general conditions before proceeding. Comparing offers based on management and contribution fees can also clarify whether a transfer is worthwhile. Do not hesitate to discuss with representatives of financial institutions and use the following arguments:

• ✅ Emphasize loyalty to the bank or insurer (e.g., for a client with BNP Paribas or Crédit Agricole for several years).
• ✅ Highlight the importance of long-term investment in the offered contracts.
• ✅ Inquire with entities like Macif or Generali about special offers or discounts for transfers.

Type of fee	Average amount	Application conditions
Management fees	0 – 1.5% per year	Varies depending on contract and insurer
Administrative fees	0 – 150 €	According to file processing conditions
Exit penalties	Variable	Based on contractual clauses

The deadlines and procedures to follow for a successful transfer in 2025

The duration of a life insurance transfer varies greatly depending on the case, which can discourage some households seeking a quick operation. The key point is to understand that processing time largely depends on:

• ⏳ The type of transfer (simple transformation within the same distributor or change of distributor).
• 📝 The administrative steps involved.
• 🔄 The cooperation between the involved financial institutions.

If you stay with the same bank or manager (e.g., LCL or Macif), the transfer is generally quick and can be completed in a few days thanks to an automated mechanism. Conversely, changing banks or brokers while remaining with the same insurer often involves more cumbersome steps and longer durations, sometimes several months.

To save time, you can:

• 📅 Send official letters with acknowledgment of receipt to formalize your request.
• 📞 Follow up regularly with your insurer’s or distributor’s customer service.
• 📄 Gather all necessary documents from the start of the process.

Scenario	Estimated average delay	Practical tips
Transfer within the same distributor	A few days to 2 weeks	Simple and fast process
Transfer with change of distributor	1 to 6 months	Multiple follow-ups, patience required

The pitfalls to avoid and practical advice for a proper life insurance transfer

Several difficulties can complicate your life insurance transfer and impact your wealth management strategy. It is important to stay vigilant on certain points:

• ⚠️ Do not confuse transfer and redemption: a redemption results in losing the contract’s seniority.
• ⚠️ Always verify the acceptability of the new contract with your insurer.
• ⚠️ Watch out for specific clauses that could lead to hidden fees or penalties.
• ⚠️ Be cautious when changing distributor: without clear agreement, the process can be stalled.

To avoid these pitfalls, here are some recommendations:

• 📋 Take the time to study all contractual documents
• 📞 Maintain regular contact with your manager
• 🖊️ Always formalize your requests in writing
• 📊 Compare different contracts before committing