A Luxembourg life insurance policy is a tailored financial tool. It makes it possible to combine a long-term investment, chosen from among the various vehicles authorised by Luxembourg legislation, with estate planning, by allowing its beneficiaries to be freely specified in the case of death. Whilst complying with the legislation of the policyholder’s country of residence, it also enables the latter to benefit from the unique protection in Europe offered to the policyholders of a Luxembourg policy.

The Luxembourg life insurance policy is tax neutral for non-residents in Luxembourg. That is to say that Luxembourg does not tax the premiums paid in the policy, the realised gain at the time of surrender or expiry and the capital paid to the beneficiary at the time of the insured’s death. The tax regime applicable to the Luxembourg life insurance policy is that of the country of residence of the policyholder or the beneficiary. The life insurance policy also benefits from portability. Thus, at the time of a country change of residence, the policy can follow the policyholder without having to be surrendered, Luxembourg also benefits from a system protecting the policyholder that is unique in Europe. Finally, the Luxembourg life insurance policy gives access to diversified investment vehicles.

By taking out a life insurance policy in Luxembourg the policyholder benefits from Luxembourg tax neutrality, the financial know-how of the Luxembourg financial centre and its stable political, economic, and social situation. Luxembourg also offers unique protection for the policyholder. This system is referred to as the security triangle and is reinforced by the super privilege granted to the policyholders of Luxembourg life insurance policies. Finally, the Luxembourg life insurance policy allows investment in a multitude of investment vehicles.

The unit-linked life insurance policy is a policy whose premium is invested in various investment vehicles and whose value may evolve positively or negatively depending on how the markets evolve. The investments underlying the policy are determined by the policyholder’s risk profile. The unit-linked Luxembourg life insurance policy may be backed by external funds, internal collective funds, internal dedicated funds or even specialised insurance funds depending on the policyholder’s country of residence.