Life insurance for liberal professions: the solution for a peaceful retirement

For the self-employed, the transition to retirement leads to an often substantial drop in income. For these professionals, the replacement rate varies between 10 and 30% on average. In comparison, this rate fluctuates between 40% and 60% for employees in the private sector and even reaches 90% for employees in the public sector. In order to calmly approach this stage of life, there is a solution that many do not necessarily think of, but which can be very beneficial for liberal professionals: life insurance.

What is life insurance?

Life insurance is a savings product that allows the subscriber to save money with a view to passing it on to a beneficiary (family, friend, neighbor, etc.) in the event of death. But this is not the only function of this financial investment. Indeed, the subscriber remains the beneficiary and the holder of the funds throughout his life. He can therefore touch the amount saved, as well as the interest accrued throughout the duration of the contract.

What are the advantages of life insurance for the liberal professions?

According to statistics from the French Insurance Federation, life insurance is the favorite savings solution of the French. For the self-employed, the advantages of subscribing to it are numerous:

A versatile product

Above all, life insurance allows the subscriber to protect his relatives in the event of premature death. But it can also allow him to maintain his standard of living in the event of an accident, or to invest in various projects.

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In addition, with the same life insurance contract, it is possible to invest in several products such as euro funds, units of account, real estate, etc … At the convenience of the subscriber. He can for example choose to invest in volatile assets at the beginning of his career, then once close to his retirement, reduce the level of risk by opting for safer investments.

Free payments

Contrary to popular belief, life insurance isn’t just for the rich. Indeed, everyone can subscribe to it, whatever your budget. In addition, there is no obligation as to the frequency and amounts of payments. The subscriber is in fact free to pay the amount he wishes and at the frequency of his choice.

In his first years of activity, a self-employed person can, for example, take out a contract by making a single payment. Once his client portfolio grows and his income is more stable, he can then set up fixed and regular contributions. In addition, the possibility is offered to temporarily suspend its payments in the event of financial difficulties. It is therefore a free savings solution that allows you to build up capital at your own pace.

Funds available at all times

The money in a life insurance policy is withdrawable at any time. Whether it is to seize a business opportunity or face an urgent need, the funds saved are always available. On the other hand, it is strongly advised not to withdraw all of your capital. Indeed, this results in the termination of the contract and the loss of all related benefits.

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Life Insurance Liberal Professions

A particularly attractive tax framework

Life insurance contracts are not taxable only in case of withdrawal. In other words, the subscriber has nothing to report to taxes until he withdraws at least part of the funds. And when it does, the tax base only concerns interest. In addition, if the contract extends over at least 8 years, partial withdrawals for which interest is less than € 4,600 per year (€ 9,200 for the couple) benefit from a income tax exemption.

In addition, in the event of inheritance, the capital and interest are exempt from inheritance tax within the limits of an allowance which varies according to the age of the subscriber.

Finally, it should be noted that life insurance is not subject to any payment limit. It is even possible to simultaneously subscribe to several contracts in order to guarantee a peaceful retirement. More details here!

How to take out life insurance?

To take out a life insurance contract, liberal professionals can contact:

  • Their bank;
  • Their insurance company.
  • A wealth management advisor;
  • A broker specializing in life insurance;
  • A mutual.

The opening of a life insurance account can also be done directly online at From home, you can do a simulation to find the most advantageous projects. It is then possible to complete the subscription procedure in a few clicks.

Finally, even if you are not yet planning to retire anytime soon, it is still recommended that you take out life insurance now. Indeed, the sooner you subscribe, the sooner you will be able to benefit from the tax advantages, given that the date taken into account is the opening date. You can therefore make a first payment now and come back to continue your retirement plan several years later.

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