Life insurance beneficiary clause in France: the complete guide
Updated on 7 August 2026
In France, a life insurance policy’s beneficiary clause is the part of the contract that formally names the people who will receive the capital when the policyholder dies. It allows savings to pass outside the standard inheritance process, with dedicated tax treatment, provided it is drafted precisely.
- The beneficiary clause designates who will receive the capital from your life insurance policy when you die.
- It is crucial: without it, the capital reverts to your estate and loses its dedicated tax treatment.
- It is drafted by naming your beneficiaries explicitly (first name, last name, date and place of birth), as a revocable or irrevocable clause.
- It can be changed at any time with a simple written request to your insurer, unless the beneficiary has formally accepted it.
Life insurance beneficiary: drafting and changing the clause
The beneficiary clause of your life insurance policy lets you specify precisely who will receive the capital that has built up. It governs how the capital is transferred under your contract.
Yet drafting this clause can be complicated. How can you make sure your wishes are respected? How do you avoid tax and legal pitfalls? This guide walks you through the essential rules for drafting and changing the beneficiary clause.
What is a beneficiary clause in life insurance?
The beneficiary clause is a key element of your life insurance contract. It determines who will receive your savings after you are gone.
Definition of the beneficiary clause
The beneficiary clause is a legal provision written into your life insurance contract. It designates the beneficiaries of your savings. It lists the information needed to clearly identify each beneficiary.
The clause states the names, dates of birth and other details needed to clearly identify your beneficiaries. You can include your spouse, your children, other family members, or even charitable organisations.
Why the beneficiary clause matters
Without a well-drafted beneficiary clause, your savings would go into your estate. Your legal heirs would then inherit under the complex rules of statutory succession. This could create potential family conflict. The tax authorities could also take a significant share in the form of inheritance tax.
By carefully drafting your beneficiary clause, you decide who receives what, when and how. This lets you set the capital split exactly as you wish.
What is the beneficiary clause in life insurance for?
The beneficiary clause is used to precisely name the people who will receive the capital, to secure its transfer outside of the estate, and to organise its distribution according to the policyholder's wishes.
Naming the beneficiaries
The first purpose of the beneficiary clause is to precisely name the beneficiaries of your life insurance capital after your death. It puts an end to disputes over the deceased's intentions. Your wishes are clearly established.
You have complete freedom to choose your beneficiaries. This can include family members, friends, or even charitable organisations. You decide who deserves to inherit your savings.
Keeping the capital outside of the estate
By naming your beneficiaries through this clause, the capital in your life insurance policy is, in principle, passed on outside of the civil estate: Article L132-12 of the French Insurance Code states that “the capital or annuity payable on the death of the insured to a named beneficiary or to their heirs does not form part of the estate of the insured”, subject to the applicable tax rules (Articles 990 I and 757 B of the French General Tax Code (CGI), depending on the age at which the contributions were made).
Tax benefits
Choosing your beneficiaries wisely through the clause brings tax benefits. Capital paid out from a life insurance policy, for contributions made before the policyholder turns 70, benefits from a €152,500 tax allowance per beneficiary (Article 990 I of the CGI, in force at the time of publication). Beyond that, a 20% levy applies up to €700,000 of capital transferred per beneficiary, then 31.25% beyond that threshold. For contributions made after age 70, the rules under Article 757 B of the CGI apply.
Finary's life insurance simulator lets you estimate, based on the date of the contributions and the amount transferred, the net capital your beneficiaries could receive after applying the €152,500 tax allowance and the levies set out in Articles 990 I and 757 B of the CGI. These rules may change and depend on your personal situation.
Also read: our complete guide to life insurance taxation.
More capital invested
Non-contractual document for promotional purposes. Investment in unit-linked vehicles carries a risk of capital loss, since their value is subject to fluctuation, both upwards and downwards, depending in particular on developments in the financial markets. The insurer commits to the number of units, not to their value, which it does not guarantee. The e-vie life insurance policy is an individual life insurance policy, denominated in euros and/or unit-linked vehicles, underwritten by Generali Vie, a company governed by the French Insurance Code. Finary SAS - 58 rue de Monceau 75380 Paris 8 - Investment Firm authorised by the ACPR under no. 19283, ORIAS no. 21001279, member of AMAFI
How do you name the beneficiaries of your life insurance policy?
To name the beneficiaries of your life insurance policy, you need to choose a type of clause (revocable or irrevocable), identify each beneficiary precisely, and set out how the capital will be split.
Types of beneficiaries (revocable and irrevocable)
First, decide what type of beneficiary you want to name. There are two options:
The revocable beneficiary: you can change this beneficiary at any time, without their consent. This lets you adjust your clause as your life changes.
The irrevocable beneficiary: once named, this beneficiary cannot be changed without their written consent. This is more restrictive, but useful in specific cases.
Imagine naming your spouse as an irrevocable beneficiary. Even in the event of divorce, they would remain the beneficiary unless they agree to the change. A safeguard, but one to weigh carefully.
Freedom to choose
One of the great strengths of the beneficiary clause is the near-total freedom it gives you to choose your beneficiaries. You can choose family members, friends, or charitable organisations.
You can also name several beneficiaries and split the capital between them as you prefer. For example, 60% for your spouse, 20% for each of your children.
Precision and clarity in the wording
Whatever you choose, precision is key. To avoid any dispute after your death, name your beneficiaries clearly.
For example, avoid "my friend Julien". Specify "Julien Dupont, born on 12 May 1985 in Marseille". With a first name, last name, date and place of birth, there is no risk of confusion!
If you name several beneficiaries, be clear about how you want the capital split. "Equal shares" or exact percentages: choose whichever suits you.
Examples of how the capital can be split
Here are a few examples of how the capital can be split:
- "My wife Marie Durand, 60%; my two children Pierre and Lucie, in equal shares."
- "In equal thirds between my brother Jacques, my sister Amélie, and the charity Les Restaurants du Cœur."
- "100% to my only son Théo. Failing that, equal shares between my nephews Maxime and Nathan."
There are many ways to reflect exactly what you want.
Tips for avoiding common mistakes
Finally, here are a few mistakes to avoid when drafting your clause:
- Do not name minor beneficiaries without arranging guardianship or another specific provision.
- Avoid restrictive wording that would exclude people not yet born. It is generally recommended to use an open wording such as "my children, born or yet to be born" rather than a closed list.
- Read your clause carefully. A typo can have serious consequences!
- If in doubt, consult a licensed professional (a notary or a Conseiller en Investissements Financiers (CIF), France's regulated status for financial investment advisers).
By following this advice, your beneficiary clause will be clear. You can then move on to drafting it with complete peace of mind!
How do you draft the beneficiary clause?
The beneficiary clause is drafted by choosing between a standard clause provided by the insurer and a personalised clause, then specifying the exact identity of each beneficiary and how the capital should be split.
Standard clause vs. personalised clause
First decision: will you opt for a standard or a personalised clause?
The standard clause, drafted by your insurer, has the advantage of being simple. It names beneficiaries by their family relationship ("my spouse", "my children", etc.). This type of clause adapts to family changes such as a birth or a death.
However, it lacks flexibility. You cannot name beneficiaries who are not relatives, or split the capital other than in equal shares. This is a drawback for anyone with specific wishes.
The personalised clause lets you name each beneficiary individually, include friends or charities, and split the capital exactly as you wish. You define precisely how it is shared out.
Drafting tips to avoid conflict
Whichever option you choose, here are a few tips for drafting your clause effectively:
- Be precise about the beneficiaries' identity (first name, last name, date and place of birth).
- Provide for substitute beneficiaries in case the first one named cannot accept ("failing that...").
- Use clear language to avoid any misinterpretation after your death.
- Set out the split clearly if you name several beneficiaries.
Absolute clarity and precision are essential. Any imprecision can open the door to disputes among your loved ones.
Drafting a beneficiary clause in a will
You can also include your beneficiary clause in your will. This can be useful for keeping your wishes confidential.
Draft a named clause specifying the numbers of the life insurance contracts concerned. Your notary will carry out your wishes after your death.
The advantage? No one but you and your notary will know the beneficiaries' identity before the will is opened. Useful for specific situations or late changes.
Including children born or yet to be born
One last general recommendation: it can be worth including a mention covering children not yet born, after reviewing your situation with a professional.
Instead of naming "Jean, Marie and Lucas" individually, say "my children, born or yet to be born, living or represented". This ensures that a happy future event will not undermine your wishes.
This precaution protects the interests of your future descendants.
Can you change your beneficiary clause?
Yes, you can change your beneficiary clause at any time with a simple written request to the insurer, unless the beneficiary has formally accepted the benefit of the contract.
Conditions for making a change
In most cases, you can change your beneficiary clause whenever you want. You simply need to send a written request to your insurer, by post or email. The insurer will then draw up an amendment to the contract to record the changes.
If you named your spouse as the main beneficiary, you can easily update your clause to include your new child.
Acceptance by the beneficiary
Watch out, there is one exception: if your beneficiary has formally accepted the benefit of the contract, you can no longer replace them without their consent. This acceptance usually takes the form of an amendment or a notarised deed.
In that case, you need the beneficiary's written approval for any change. So it is best to stay on good terms with them!
What happens if the beneficiary dies before the insured?
You have carefully drafted your beneficiary clause. But what happens if a beneficiary dies before you? This scenario, while not a pleasant one, needs to be anticipated to avoid problems.
Substitute beneficiaries
The simplest solution is to provide for a substitute designation of beneficiaries. You draw up a list of beneficiaries in order of priority.
For example: "I name as beneficiary my wife Marie Durand. Failing that, my two children, Pierre and Lucie, in equal shares. Failing that, the charity Les Petits Princes."
With this wording, if a beneficiary dies before you, the capital will automatically go to the next beneficiary or beneficiaries. No further steps are needed.
Rules for passing on the capital
If you have not provided for a substitute beneficiary, the rules depend on the status of the deceased beneficiary.
In the absence of a substitute beneficiary, the capital reverts to the estate of the insured and is distributed under the rules of statutory succession, regardless of the deceased beneficiary's family situation.
The key is to plan your wealth-transfer goals ahead of time. With the right approach, you can organise the transfer exactly as you wish.
within reach
Non-contractual document for promotional purposes. Investment in unit-linked vehicles carries a risk of capital loss, since their value is subject to fluctuation, both upwards and downwards, depending in particular on developments in the financial markets. The insurer commits to the number of units, not to their value, which it does not guarantee. The e-vie life insurance policy is an individual life insurance policy, denominated in euros and/or unit-linked vehicles, underwritten by Generali Vie, a company governed by the French Insurance Code. Finary SAS - 58 rue de Monceau 75380 Paris 8 - ORIAS no. 21001279
Frequently asked questions
Can I name my civil partner or common-law partner as a beneficiary?
Yes. Unlike standard succession, where common-law partners have no legal rights, a life insurance beneficiary clause lets you freely name a civil partner (PACS) or common-law partner, with no restriction based on the couple's legal status. You simply need to identify them clearly (first name, last name, date and place of birth) in the clause.
What happens if I do not draft a beneficiary clause?
Without a beneficiary clause, the capital in your life insurance policy reverts to your estate and is distributed under the rules of statutory succession, just like any other asset. You then lose the specific tax benefits and freedom of designation that come with life insurance (Article L132-12 of the French Insurance Code).
Does the beneficiary have to pay inheritance tax on the capital received?
No, not in the standard sense of inheritance tax. Capital transferred through the beneficiary clause falls under a dedicated tax regime: a €152,500 tax allowance per beneficiary for contributions made before age 70 (Article 990 I of the CGI), beyond which a 20% levy, then 31.25%, applies. For contributions made after age 70, the rules under Article 757 B of the CGI apply.
Can I change my beneficiary clause at any time?
Yes, in most cases, by sending a written request to your insurer, who will draw up an amendment to the contract. The only exception: if your beneficiary has formally accepted the benefit of the contract, you will need their written consent for any later change.
Sources
Article L132-12 of the French Insurance Code - Légifrance
Article 990 I of the French General Tax Code - Légifrance
Article 757 B of the French General Tax Code - Légifrance
Regulatory disclaimers: Marketing communication. Investing carries a risk of partial or total capital loss. Past performance is not a reliable indicator of future performance. This article is provided for information and educational purposes only; it does not constitute personalised investment advice, a buy or sell recommendation, or tax advice. The capital guarantee on euro funds is provided by the insurer and depends on its financial strength. In a severe systemic crisis, the French “Sapin 2” law allows withdrawals to be temporarily restricted (liquidity), without affecting the guaranteed capital. Unit-linked funds are not guaranteed and carry a risk of capital loss. Before investing, read the Key Information Document (KID) and, where relevant, consult an authorised adviser. Finary SAS, an investment firm authorised by the ACPR (no. 19283), member of AMAFI. Insurance broker registered with ORIAS (no. 21001279), member of the CNCGP (association approved by the AMF). Crypto-Asset Service Provider (CASP) authorised by the AMF under the MiCA regime, references no. A2026-026 and no. N2026-008.
