If life insurance in France is only intended for French people, life insurance in Luxembourg is aimed at a wider public. And for good reason, more and more French people are turning to this Luxembourg investment. But do we really know the reasons for this enthusiasm? Is Luxembourg life insurance really more beneficial? If so, what are the tax and other benefits that can be claimed? Or simply, how does it work? Before taking the plunge, there are several questions that deserve clear answers. I tell you everything you need to know in this article.
Luxembourg life insurance, like any other life insurance, is a contract between the insurer and the insured. This then allows a specific person (beneficiary) to receive premiums (payments of money) in the event of the death of the insured.
Currently, Luxembourg life insurance is mainly used as a savings vehicle in Luxembourg. If this contract is also appreciated by residents and non-residents alike, it is because it offers several considerable advantages, particularly in terms of advantageous taxation, simplified transmission and capital security.
Life insurance in Luxembourg meets all financial needs. It also has the advantage of being based on fiscal neutrality. It is for this reason that this investment is very beneficial for people with high geographical mobility. An ideal solution for expats.
Luxembourg is a country where taxation in a life insurance contract is not applied to non-residents of Luxembourg. Which is a godsend for optimizing your finances, both legally and fiscally. So no double taxation. Result: if you are French, you can apply the advantageous taxation of a French contract, when opening your Luxembourg life insurance.
It is important to specify that in Luxembourg life insurance, only capitalized interest is taxable on the redemption. This therefore means that the invested capital is not taxed. Depending on your needs, you will have the choice between specific currencies. In most cases, this would be the euro or the dollar.
Another great interest of Luxembourg life insurance: it is aimed at all types of investors. The key is to find the type of contract that best meets your expectations and needs. However, it is important to know that:
It’s a fact: Luxembourg life insurance is considered one of the best life insurance companies on the market today. If this contract is favored by more and more people, it is because the subscription is accessible to all. And for good reason, on paper and in practice, everyone can open life insurance in Luxembourg (except people living in Switzerland and the USA). Which is a real asset compared to life insurance in France, for example. Be careful all the same, to validate the subscription, it is mandatory that the insurer of your choice validates the origin of your funds.
Have you decided to embark on the opening of a Luxembourg life insurance policy? To take full advantage of all the advantages and benefits offered by this investment, you must first go through a few steps:
The first step is, of course, the choice of Luxembourg life insurance adapted to your needs and expectations. To do so, it is important to consider a few important points:
Once you have answered all these questions, it will be easier for you to make an accurate choice.
Have you read about the disadvantages and advantages of Luxembourg life insurance? Have you chosen the entity or the bank suited to your needs and expectations? The next step is the validation of your project. To do this, the insurer must:
Your financial situation is validated. The next and final step is the opening of life insurance with the Luxembourg entity of your choice. Here are the steps to follow:
To simplify your task, opt for structures that offer online access and management of your life insurance. Read this article to learn more about the benefits of online life insurance policies .
The cost of subscribing to a Luxembourg life insurance is, almost, similar to the cost when subscribing to a French life insurance. It is therefore not very precise, as it will entirely depend on the amount invested and the entity of your choice. Plan:
According to the latest figures, approximately 212 billion in assets are managed in Luxembourg. This is not a mere coincidence. And for good reason, subscribing to Luxembourg life insurance will give you several great advantages: