Life insurance savings plan: savings plus protection

Your financial capacity and goals will determine how you save. You have the choice between monthly, quarterly, semi-annual and annual payments.

The minimum pay-in amount is €50.

The capital goes to the person (or people) designated by the policyholder. This can be a child, spouse or any other person, whether or not they are related.

It’s also possible to switch beneficiaries during the policy term.

You have 30 days to cancel your policy. The recommended minimum policy retention period is 10 years, in order to benefit from the special life insurance tax scheme. Should you need it, you can request the full redemption of your policy at any time. However, redeeming your policy may have negative consequences, for your taxes, but also for performance, the capital guarantee, or redemption fees.

As a Luxembourg tax resident or an “equivalent” resident for tax purposes, the premiums paid are tax-deductible as “special expenses”. Premiums paid are tax-deductible as “special expenses” for all policies with a minimum 10-year term (up to €672 per household member – Article 111 of the Luxembourg Income Tax Law, or LIR).

When the policy matures, Luxembourg residents benefit from a complete tax exemption on the capital accrued.