With the adoption by the end of 2016 of article 21 bis of the Law Fir 2 – you know the law that allows the High Council for financial stability to block withdrawals for up to 6 months – many of you are interested in life-insurance contracts made in Luxembourg… these last to escape this law. But this may not be their only interest. According to an article published on June 20, 2017 on the site of the Echos.fr they are indeed deemed to be more flexible and more secure than the French contracts. Then, the contracts in luxembourg, a good plan or not ? Investigation.
insurance vieL’life insurance in luxembourg, and more personalized ?
The answer is » yes, but… «. These contracts provide access to a specific fund : the fund dedicated internal. This fund is managed in the card – depending on your profile – and it includes a very complete range and diverse assets. It includes funds not authorised by the financial markets Authority.
But, all investors do not have access to these media. The products in which you can invest depends on the level of your heritage. Result, it is often necessary to have a capital of several hundreds of thousand€ to benefit from a range of assets in a complete and totally custom.
Contracts in luxembourg, you can also incorporate assets that are not quoted. What to diversify a little more in his portfolio.
Contracts in Luxembourg are they safer ?
The answer is » yes «. In Luxembourg, investors are doubly protected. Their assets are held by a custodian bank approved by the Commissariat aux Assurances, the authority of luxembourg who control the insurance industry. Results, they are segregated from the own assets of the insurance company. In addition, in the event of bankruptcy of the insurer, the investors have priority over other creditors. They will therefore be compensated before the other. This is what is called the principle of » superprivilège «.
It does not mean that investors investing in French contracts are not protected. In case of failure of the insurer, the guarantee fund of insurance of persons the compensation in the amount of 70 000 € maximum per insured and per insurance company.
More tax benefits ?
Oh no. The principle of fiscal neutrality applies. That is to say that the taxation applied to your life insurance contracted in Luxembourg is the same as that applied to a French contract. Namely :
- Your gains are défiscalisées at the end of 8 years within the limits of 4 600 € per year if you are single and 9 200 € per year if you are married or pacsé
- Your capital gains are either taxed at the progressive scale of income tax, is subject to withholding
Has to read also
Taxation of life insurance : avoid the tax
A contract in luxembourg, beyond the blocking of withdrawals as provided by the Law Fir 2 ?
Generally speaking, this is correct ! If the High financial stability Board decides to block redemptions, your life insurance is underwritten in Luxembourg will not be impacted. You can withdraw money from your contract without a problem. With one exception : the money placed on a fund-euro insured by a French company. The contracts by luxembourg companies, subsidiaries of French companies, are home to this type of fund euros.
Has to read also
Disaster scenario and life insurance : the freezing of withdrawals adopted by the deputies !
The balance sheet, the big addition to contracts in luxembourg, it is the «superprivilège» that in case of failure of the insurer protects you highly. Another advantage is the variety of assets and funds that we can integrate. But this potential is not within the reach of all purses. Result, these investments are rather intended for a clientele property. If you do plan to place a few thousand€, you’ll find it hard to benefit of the advantages of luxembourg life assurance. For others, it can be really a good plan, so ask !