HELPLINE: 
How You Can Avoid Losing Control of Your Life Insurance
The situation. Suzanne*, a retired French resident with no children, took out an assurance vie policy for her housekeeper, a financial reward she felt would honour her years of dedicated service.
She invested €580,000, a large portion of her liquid assets, the idea being she lived off her capital during retirement and then pass on whatever remained.
Succession goal. Suzanne wanted to:
- Leave a meaningful legacy for someone she cared about.
- Ensure her housekeeper would inherit the remaining funds after her death.
- Retain access to the capital during her lifetime for financial independence.
What went wrong. Suzanne told her housekeeper she was the named beneficiary. In France, such a disclosure can trigger formal acceptance (acceptation du bénéfice), especially if the beneficiary responds in writing to the insurer.
Without Suzanne realising, her housekeeper could have become a bénéficiaire acceptant, gaining legal rights to the funds.
Prioritise privacy. Once a beneficiary formally accepts, the policy becomes locked. Suzanne would no longer be able to withdraw funds or amend the beneficiary without her housekeeper’s notarised approval. The beneficiary acceptant effectively takes control and this can even happen without the policyholder’s knowledge.
Takeaway. We helped Suzanne avoid a mistake that could have jeopardised her retirement. Always keep this information private and only share it after taking professional advice.
*Names have been changed for confidentiality.