Your adviser's article · InheritanceRoland BOUVIEROctober 2026 · 5 min read
Life insurance: why turning 70 changes everything.
Life insurance is one of the best tools for passing wealth on to your loved ones. But the rules are not the same before and after 70. Here are the essentials, simply.
Life insurance is not just an investment. When an estate is settled, the money is paid directly to the people you have chosen, with very favourable tax treatment. But one date matters more than any other: your seventieth birthday.
1. Before 70: €152,500 per beneficiary
For premiums paid before you turn 70, each beneficiary can receive up to €152,500 completely tax-free. Above that, they pay 20%, then 31.25% on the part above €852,500. With three children, that means €457,500 can pass to them tax-free.
2. After 70: €30,500, but tax-free gains
For premiums paid after 70, the allowance falls to €30,500, shared between all beneficiaries. Above that, ordinary inheritance tax applies, but only to the premiums paid: the interest and gains built up are entirely tax-free.
Your spouse or civil partner
They pay nothing, whatever the amount received.
Your children and grandchildren
€152,500 each for premiums paid before 70, on top of the €100,000 inheritance allowance per child.
Someone close who is not a relative
Without life insurance, they would lose 60% in inheritance tax. It is often the best way to pass something on to them.
3. The right habits
Reread your beneficiary clause
It decides who will receive the money. A clause that is too vague or out of date, after a divorce or a birth, can complicate everything. Reread it every five years.
Think of the grandchildren
The €152,500 allowance applies to each beneficiary: naming more of them can sharply reduce the tax.
Pay in before 70, if possible
Premiums paid before that birthday get the most favourable treatment. It can be worth bringing some payments forward.
After 70, carrying on is still worthwhile
Future gains will pass on tax-free. Over ten or fifteen years, the difference is far from negligible.
- Before 70, each beneficiary receives up to €152,500 tax-free.
- After 70, the allowance falls to €30,500 in total, but gains are tax-free.
- A clear, up-to-date beneficiary clause is essential.
General information article, not personalised advice. Tax rules in force on 30 October 2026, which may change with the 2027 Finance Act. Sums invested in unit-linked funds carry a risk of capital loss.