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Luxembourg Life Insurance

Protect your wealth
in an exceptional
legal & tax framework

Luxembourg life insurance combines the highest legal security in Europe, tax neutrality aligned with your country of residence, and an investment universe without equivalent.

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Luxembourg Life Insurance

An exceptional wealth framework

Luxembourg life insurance is the reference contract for high net worth individuals. It relies on the "Safety Triangle": your assets are held with an independent custodian bank, under constant supervision by the Luxembourg Insurance Commission (Commissariat aux Assurances).

In the event of insurer default, you benefit from the Super Privilege: you are a first-rank creditor, with priority over the State, suppliers and shareholders, with no protection ceiling. By comparison, the French guarantee is capped at €70,000 per policyholder.

On the tax side, the contract is neutral: it automatically aligns with the tax regime of your country of residence. For a French resident, French tax advantages apply — €4,600 annual allowance (€9,200 for a couple) on gains after 8 years, and favourable inheritance taxation.

And if you become an expat? The Luxembourg contract follows you. Abroad, it automatically aligns with the tax framework of your new country of residence, with no need to close and reopen a contract. It is one of the very few truly internationally portable investments — a decisive advantage for mobile executives, international families and future expats.

0%

of your capital protected by the Super Privilege

No cap, vs €70,000 in France

No Sapin 2

No risk of redemption freeze

The French law that can suspend life insurance redemptions does not apply

Portability

Your contract follows you when you relocate

Tax aligned on your new residence, no closure needed

Process

The subscription journey

Subscribing to a Luxembourg contract is more demanding than a French one, but the process remains smooth when guided by an advisor. A 5-step journey, from the first meeting to long-term management.

  1. Step 1

    Wealth audit

    Comprehensive diagnosis of your wealth, your objectives (transmission, additional income, international diversification) and your risk profile. Definition of the envelope to be housed in Luxembourg.

  2. Step 2

    Insurer & contract selection

    Choice among the main Luxembourg insurers (Lombard, Sogelife, Wealins, Swiss Life, Vitis Life…) based on your goals. Definition of the wealth class (A to D), which determines the accessible investment vehicles and entry thresholds.

  3. Step 3 — Subscription

    Contract opening

    In-depth KYC file (source of funds, tax returns), contract signature, account opening with the custodian bank. Initial premium from €250,000 depending on the company (higher entry ticket for top-tier contracts).

  4. Step 4

    Allocation & management

    Building your bespoke allocation across a very broad universe: euro funds, mutual funds (UCITS), Specialised Insurance Funds (FAS), Dedicated Internal Funds (FID), structured products, private equity, unlisted real estate, multi-currency. Choice between self-directed, advised or discretionary management.

  5. Step 5 — Lifecycle

    Monitoring & transmission

    Periodic rebalancing, arbitrages, partial or scheduled redemptions. Beyond 8 years, French taxation on gains becomes particularly favourable. Upon death, the capital is transmitted to designated beneficiaries within an optimised inheritance framework.

Case study

Three envelopes, same horizon

€500,000 invested over 10 years, net-of-fees return assumptions. Comparison of French savings account, French life insurance and Luxembourg life insurance.

01

Savings account (capped)

  • Capital invested€500,000
  • Average yield≈ 2.4% / year
  • Cap on French Livret A€22,950
  • Capital after 10 years≈ €633,000
02

French life insurance (balanced)

  • Capital invested€500,000
  • Average yield≈ 5.0% / year
  • Guarantee€70,000 (FGAP)
  • Capital after 10 years≈ €814,000
03

Luxembourg life ins. (balanced)

  • Capital invested€500,000
  • Average yield≈ 6.0% / year
  • GuaranteeSuper Privilege
  • Capital after 10 years≈ €895,000
Additional gain vs Savings account ≈ 0 € i.e. +41% capital at maturity

Indicative estimate based on average historical returns. Actual performance depends on chosen allocation, accepted risk level and market conditions. A tailored study is essential.

Simulator

Project your capital over time

Adjust the parameters to your situation to get an indicative projection of how your capital evolves, with and without inflation.

Nominal capital Purchasing power (2% inflation)

Years

Total contributed — €
Final capital — €
Real purchasing power — €
Estimated tax at maturity
Estimated capital gain — €
Tax without life insurance — €
Tax with Lux Life Ins. — €

— € of tax saved on total redemption

Reveal your projection

Enter your email to access the personalised simulation of your Luxembourg contract.

Indicative projection based on a constant rate of return and an average 2%/year inflation. Actual performance depends on allocation, management fees (not included here) and market conditions. A tailored study remains essential.

Access conditions

5 key points to know

Luxembourg life insurance is a top-tier tool, accessible under certain conditions. More demanding than its French equivalent at entry, it offers in return a level of protection, flexibility and sophistication without equivalent in Europe.

1 / 5
01

High entry ticket

Access to a Luxembourg contract requires a significant initial investment, generally starting at €250,000, or even €1M for top-tier contracts with discretionary management or Specialised Insurance Funds. It is a wealth tool reserved for already-established estates.

02

Wealth classes

The Insurance Commission classifies policyholders into 4 categories (A, B, C, D) based on the amount invested and total wealth. Each class opens access to a broader investment universe: higher classes give access to FID, FAS, private equity and unlisted funds.

03

In-depth KYC

Subscription requires a demanding Know Your Customer file: source of funds documentation, tax returns from recent years, wealth statement. This level of control is what makes the framework robust and its international reputation strong.

04

Fees to analyse

The fees of a Luxembourg contract (entry, management, arbitrage) are often higher than a French online contract, but consistent with the service level. A comparative analysis company by company is essential: the gap can be significant over time.

05

Mandatory declaration in France

For French tax residents, the Luxembourg contract must be declared each year in the tax return (form 3916-bis). It is a simple administrative formality, but mandatory: forgetting it exposes you to heavy tax penalties.

FAQ

The questions every investor asks

Do I have to be a Luxembourg resident to subscribe?

No. Luxembourg life insurance is open to non-residents, including French tax residents. The contract applies the taxation of your country of residence — this is what we call Luxembourg's tax neutrality.

This is precisely what makes it a reference tool for expats, international families and mobile estates.

What happens if I relocate after subscribing?

Your contract follows you. This is a major advantage of Luxembourg life insurance over a French contract: the contract remains valid, and its tax treatment automatically aligns with that of your new country of residence.

Concretely, if you move to Belgium, Italy or elsewhere, you don't need to close your contract or pay any specific exit taxation on the Luxembourg envelope. You continue managing the same contract, simply under a different tax regime. This is invaluable for executives with international careers, binational families or future retirees considering a change of residence.

Note for Belgian residents: since 1 January 2026, the new Belgian 10% tax on capital gains also applies to foreign life insurance contracts (including Luxembourg ones). The advantage of Luxembourg life insurance for a Belgian resident lies elsewhere: legal security, no Sapin 2 equivalent, broader investment universe.

Is the French tax treatment less favourable than with a French contract?

No, it is identical. For a French resident, the Luxembourg contract benefits from the same tax advantages as a French contract: annual allowance of €4,600 (€9,200 for a couple) on gains after 8 years, PFU (Single Flat Levy) at 7.5% on premiums below €150,000, and favourable inheritance taxation.

The difference lies in legal security and investment diversity, not in taxation.

What is the Sapin 2 law and why does it not apply?

The Sapin 2 law (2016) authorises the French High Council for Financial Stability to suspend redemptions on French life insurance contracts in case of systemic risk. The suspension can last up to 6 months renewable.

Luxembourg contracts being governed by Luxembourg law, they escape this mechanism. Your redemptions remain always possible, independently of the French situation.

Does the Super Privilege guarantee that I recover 100% of my capital?

It guarantees priority, not the amount. In the event of insurer default, you are the first creditor to be reimbursed, before the Luxembourg State and all other creditors, with no legal cap.

The amount actually recovered depends on the value of the assets at the time of liquidation. It remains nevertheless a protection without equivalent in Europe: in France, you are capped at €70,000 by the FGAP.

Can I invest in assets not available in France?

Yes, this is one of the main advantages. Depending on your wealth class, you can access tailored Specialised Insurance Funds (FAS), Dedicated Internal Funds (FID), private equity, unlisted real estate, bespoke structured products, and invest in multi-currency (EUR, USD, CHF, GBP).

It is the most advanced architecture in the European market.

When is the right time to open a Luxembourg contract?

As early as possible, once the entry threshold is reached. Since French taxation becomes favourable after 8 years of holding, the earlier you open, the longer you will benefit from this regime.

Typical profiles: executives in transmission phase, people having received a donation or inheritance, expats, or any mobile wealth above €250,000 seeking security and diversification.

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Let's discuss your wealth strategy

Every situation is unique. Global wealth, investment horizon, risk level, transmission objectives, tax residence — all these parameters shape a tailored strategy.

A 45-minute meeting with one of our advisors, no commitment.

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