We prefer not to think about death. However, preserving your family's future also means ensuring that they will not be left without anything if you unfortunately die one day. The large number of existing insurance policies does not make things easy. Are your credits well covered? How do you finance your child's future education? What are the advantages of taking out life insurance in Luxembourg?
Pass on savings rather than debt
Investing in a house, starting a family, or putting a new one together are steps that require you to think about your financial future and that of your loved ones. Here are three examples of how you can think ahead to ensure your loved ones are comfortable.
Buying a property with outstanding balance insurance
Passing on your investment, but not the credit associated with it: that is the purpose of outstanding balance insurance. In the event of death or total and permanent disability, this insurance will reimburse the bank for the remaining balance of the loan. Your family is protected: they can continue to enjoy the property without having to repay the loan.
At Foyer, the temporary insurance for the remaining balance due (TSRD) is accompanied by a "right to forget" agreement which allows people with an aggravated risk due to a cancerous pathology to be able to take out this insurance despite everything.
Financing your children's education with life insurance
Have you recently become a parent and would like to secure your child's future by saving for his or her education?
With a life insurance policy, you can define a premium to be paid monthly or annually for a predetermined period (minimum 10 years). This insurance formula combines savings and providence. It allows you to put money aside and to ensure a financial capital for your child if you die.
Let's take the example of Foyer's nova solution. It provides for the payment of the full amount of the premiums programmed in the contract to the beneficiary in the event of the death of the insured. If the death is accidental, this amount is doubled. At the same time, the insurance company continues to pay the premiums and the entire capital will be paid out again at the end of the contract.
Blended family and new heirs
A life insurance policy is the ultimate tool for passing on financial assets. It allows you to keep control of part of your capital so that people other than your legal heirs can benefit from it, while respecting the reserved portions.
For example, life insurance allows a blended family with unmarried spouses to change the distribution of the estate to include the new partner. You also have the right to change this list of beneficiaries at any time and without the intervention of a notary.
This Foyer pension savings solution is called helios invest. In the event of the death of the insured, the company will pay out the maximum amount between what the person has saved and the minimum death benefit that has been decided. The policyholder chooses a minimum death benefit of 60%, 100% or 200% of the total premiums under the policy.
Tax deduction, security triangle, super privilege: the financial advantages of a life insurance policy in Luxembourg
In addition to providing for the finances of the heirs, a life insurance policy also offers significant advantages for the policyholder.
Tax deductibility
Your life insurance policy allows you a tax reduction of up to €672 per year. The amount is doubled if you are married and can be increased by a further €672 per child. For example, if you have a spouse and two children, you can deduct up to €2,688 per year.
Optimal protection of your capital
Luxembourg has one of the most rigorous financial protection systems. The concept of the security triangle provides maximum protection for your assets.
The money you invest is not kept with the insurer, but must be deposited with a custodian bank approved by the Commissariat Aux Assurances on an account separate from the insurance company's account. Your assets are thus legally separated from those of the insurance company's shareholders and creditors.
This "Super-privilege" allows you to recover your entire savings in priority to any other creditor.
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