What Are the Advantages of a PEA Assurance in France?
Updated on 30 July 2026
The PEA assurance is a capitalisation policy invested in unit-linked funds that carries the same tax treatment as the standard PEA (a French tax-advantaged equity savings account) in France: exemption from income tax after 5 years, and the option to exit as a tax-free life annuity after 8 years. It combines management delegated to an insurer with the tax framework of France's equity savings plan.
- The PEA assurance is restricted to eligible UCITS funds selected by the insurer, with no direct access to individual shares.
- Contributions are capped at €150,000 for a standard PEA alone, or €225,000 when combined with a PEA-PME.
- After 5 years, gains are exempt from income tax but remain subject to social security levies.
- Unlike the bank PEA, the capitalisation policy survives the holder's death and can be passed on to heirs.
- Only one PEA per adult is allowed, except for the PEA-PME, which can be combined with it.
What is the PEA assurance?
The PEA assurance is a capitalisation policy invested in unit-linked funds combined with the PEA's tax option (Plan d’Épargne en Actions): it combines the delegated management of a life insurance policy with the PEA's income tax exemption after 5 years. To understand its benefits, you first need to know the product you want to invest your money in.
What is a PEA?
The PEA (Plan d’Épargne en Actions) is a medium-to-long-term investment wrapper with a specific tax framework, well known among wealth management enthusiasts. It lets you invest in the stock market and build a diversified asset portfolio while benefiting from an income tax exemption after 5 years of holding.
You can hold European assets in it such as shares, ETFs, or UCITS funds (Undertakings for Collective Investment in Transferable Securities) made up of at least 75% European equities.
Its contributions are capped at €150,000, excluding capital gains.
How does a PEA assurance work?
The PEA assurance is in fact a capitalisation policy invested exclusively in unit-linked funds, with the PEA tax option (which is why it is also called the capitalisation PEA). As such, it combines the advantages of these two investment products.
In exchange, you do not have access to all PEA assets. The PEA assurance is restricted to eligible UCITS funds and certain European companies. It therefore does not give you access to individual shares, and it is the insurer who directly selects the products that make up its offer.
What may seem like a constraint at first glance can be an advantage for investors who do not want to spend time managing their portfolio: you do not have to select which securities to include in your portfolio to optimise your risk/return ratio. This delegated management can save you time. It does not, however, remove the risk of capital loss inherent to unit-linked funds.
You can also benefit from policy advances, a kind of "loan" made by your insurer, deducted from your future gains, to help you avoid a withdrawal that would close your equity savings plan. This clause must be expressly provided for in the general terms and conditions.
But the PEA assurance also carries the PEA's tax rules, which the PACTE law greatly simplified in 2019. As a result, you are exempt from income tax:
- as long as you do not withdraw funds from your account, meaning as long as dividends and capital gains are reinvested directly;
- after 5 years: net capital gains and earnings are exempt from tax, social security levies remain due (17.2%), and contributions remain possible.
After 8 years, you have the option to exit your PEA assurance as a tax-free life annuity. An option for taxpayers looking to build a supplementary retirement income!
Good to know: Holding period plays a key role in the taxation of savings products such as the PEA. Depending on your investment goals and wealth strategy, the PEA assurance offers more advantages than the standard PEA, provided you keep it for at least 3 additional years. How to open a PEA assurance?
To open a PEA assurance, you must be of legal age and not hold another PEA, except for the PEA-PME. As a capitalisation policy, it is opened with an insurance company that offers you a selection of eligible UCITS funds.
Which funds are eligible?
A hybrid between life insurance and the standard PEA, the PEA assurance offers restricted access to assets. As such, only three types of products can be held in it:
- units of UCITS funds predominantly invested in Europe (at least 75%);
- shares of European companies subject to corporate income tax (IS) or an equivalent;
- PEA-eligible ETFs, or trackers, which are index funds. Their synthetic replication gives you access to the US or Asian markets, allowing you to work around the PEA's rigid framework to some extent.
Several PEA assurance contracts exist on the market, offered by different insurance companies. Choosing a contract requires a personalised analysis of each investor's situation and is not the subject of this article.
Unit-linked funds are subject to market fluctuations, both upward and downward, with no capital guarantee. Risk management and the investor's profile therefore play a key role in this type of investment.
Good to know : The PEA assurance has the advantage of being convertible into a simple capitalisation policy in two cases: before 8 years through a partial or full withdrawal, or after 8 years through a full withdrawal. This conversion then gives you access to a wider range of funds. Can you combine a PEA assurance and a bank PEA?
The law is very clear on this point: only one PEA per adult, except for the PEA-PME, which can be combined with the other equity savings plans available. So you cannot combine a PEA assurance and a bank PEA.
However, it is entirely possible to transfer from one form to the other without losing the seniority of your holdings, and without any tax impact. As a result, all transfers are possible:
from a bank PEA to a PEA assurance; from a PEA assurance to a bank PEA; from a PEA assurance to another PEA assurance.
The contribution cap, whichever option you choose, is set at €150,000 for the PEA alone, and €225,000 for the combined PEA and PEA-PME.
Read also: Can you have several PEA in France?
What are the differences between the PEA assurance and the bank PEA?
The bank PEA offers direct access to individual shares and ETFs, with more management freedom; the PEA assurance delegates the selection of investment options to the insurer but is the only one of the two that allows the capitalisation policy to be passed on to heirs and offers an exit as a life annuity after 8 years. A closer look at the differences between these two investment products.
PEA assurance vs bank PEA
| Characteristics | Bank PEA | PEA assurance |
|---|---|---|
| Partial withdrawal before 5 years | Account closure Taxation on net gains + social security levies | PEA closure, but the capitalisation policy wrapper is retained. |
| Partial withdrawal after 5 years | Exemption from tax on net gains Social security levies due | Exemption from tax on net gains Social security levies due |
| Availability of savings | Yes after 5 years, otherwise the plan is closed | Yes, through policy advances (possible before 5 years) and partial withdrawals |
| Available investment options | Direct European shares, UCITS funds and ETFs | Eligible UCITS funds |
| Holding method | Direct | Via a capitalisation policy |
| Custody fees | Variable (within legal limits) | None (included in the capitalisation policy) |
| Life annuity | Possible with conversions and potential fees | Possible after 8 years |
| Transfer on death | PEA closes on the holder's death | The PEA ends, but the capitalisation policy survives. Heirs retain the seniority of the holdings |
Although similar in many respects, the PEA assurance stands out and is closer to a product designed and suited to a long-term wealth strategy. In fact, it is the only product that lets you plan for the holder's death while retaining the seniority of your holdings and exiting as a life annuity. It is perhaps a more dynamic but also riskier alternative to a euro-fund life insurance policy.
Good to know : If you are torn between the PEA and life insurance, the PEA assurance is an intermediate solution that combines the tax features of the PEA with those of the capitalisation policy. It can be worth considering for investors looking for delegated management, specific taxation and a transferable dimension, depending on their situation. Exiting as a life annuity is an option to consider for building supplementary retirement income. Ultimately, the choice between a bank PEA and a PEA assurance depends above all on your goals, your preferences, and the strategy put in place with your wealth manager. Goals
Frequently asked questions
What are the advantages of the PEA assurance?
The PEA assurance offers management delegated to the insurer, the option to pass on the capitalisation policy in the event of death, an income tax exemption after 5 years, policy advances to avoid early closure, and an exit as a tax-free life annuity after 8 years of holding.
The PEA assurance and the bank PEA, what is the main difference?
The bank PEA gives direct access to individual shares, ETFs and European UCITS funds, whereas the PEA assurance, structured as a capitalisation policy, restricts the choice to eligible UCITS funds selected by the insurer, in exchange for delegated management and easier transfer to heirs.
Why open a PEA assurance?
The PEA assurance opens up other possibilities for investors already familiar with the equity savings plan, with the option to exit as a tax-free life annuity and pass on the capitalisation policy. It is suited to an overall wealth strategy.
Can a PEA assurance be converted into a simple capitalisation policy?
Yes: the PEA tax option can be terminated at any time, before 8 years through a partial or full withdrawal, or after 8 years through a full withdrawal, subject to the taxation linked to the holding period. The capitalisation policy survives in both cases.
Sources
Service-public.fr, Plan d'épargne en actions (PEA): contribution caps and taxation after 5 years
AMF France, PSCA white list, Finary SAS
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. 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.
