The term "life insurance" is commonly used to refer to two different investment products.
Savings and provident insurance policies are linked to lifestyle and age.
At the age of 30, a life insurance savings product can be used to finance a trip around the world or to start preparing for retirement.
At 50, with children, a foresight insurance policy allows you to protect your loved ones should you die. Your spouse will receive a lump sum in the event of your death, enabling him or her to cope financially.
Finally, at the age of 70, life insurance is also a tool allowing you to pass on part of your capital to the beneficiary of your choice.
The return on savings in the event of death is also left to your discretion, depending on your choices.
There are different levels of risk. From very defensive to very risky. Thus, the more cautious will choose to invest their capital in a guaranteed investment (rate currently at 0% due to the economic context) with the possibility of a bonus at the end of the year (profit sharing).
Clients with a more "aggressive" risk profile can turn to funds in commodities, robotics or biotechnology, for example, which can generate higher gains but with greater risk of loss.
Finally, risk is not necessarily the only criterion.Indeed, many investors are now turning to responsible funds that take into account environmental, social and governance aspects in their choice of companies to invest in.
There are two kinds of advantages.
Firstly, with the exception of retirement savings, your savings are not taxed on withdrawal.
Both the capital payable at the end of the policy and your death benefit are tax-free.
Secondly, you are eligible for a tax reduction from the moment you save. In fact, each taxpayer can deduct:
With a savings/investment solution, your money remains available. You can withdraw all or part of it whenever you want.
Again, in the case of both savings and pensions, it is you who designates the beneficiary or beneficiaries.
As a savings product, life insurance taken out in Luxembourg allows you to better plan the transfer of your assets to the beneficiaries of your choice. As long as you’re still living in Luxembourg at the time of your death, as the inheritance law of the country of residence will apply.
Secondly, the Grand Duchy of Luxembourg has a great deal of investment expertise, with a very wide choice of funds available.
Finally, the level of capital protection is unrivalled in Luxembourg because the assets linked to life insurance contracts are deposited with a bank approved in advance by the Luxembourg Insurance Commission. If the insurer defaults, the supervisory authority can freeze the accounts to protect the rights of policyholders.
This is the famous Luxembourg security triangle.
Yes. You can of course combine a foresight product with a savings product.
Generally, husband and wife are insured under a life insurance policy designed to protect a property purchase. But not necessarily to the same extent.
As for savings, there are no limits there either. Husbands and wives can take out independent policies, which simplifies the transfer of assets but also makes things easier in the event of separation.
Protect your children, finance your projects, prepare your pension or insure yourself in the event of death, find all the AXA savings and pension products.
Contact one of our advisors to find the solution that suits your lifestyle.