Luxembourg life insurance

Discover the benefits of a Luxembourg life insurance policy.

Luxembourg life insurance

Backed by a clear and detailed legal framework, the Luxembourg life insurance contract is internationally recognised, making it a safe and effective vehicle for the transmission of wealth. Luxembourg life insurance offers a number of advantages over and above its general characteristics.

A stable environment

Situated at the heart of Europe, Luxembourg is an international financial centre. Its political, economic and social stability, its excellent AAA sovereign credit rating and its modern legal and regulatory framework together provide solid assurance of the best possible environment for discerning clients.

International expertise

Since 1 July 1994, EU insurance companies have been authorised to carry on their business under the Free Provision of Services (FPS) throughout the European Economic Area (EEA) under the third European Directive.  In this context, Luxembourg insurers have developed contracts that comply with the legal and regulatory rules of their subscribers’ countries of residence (classification of contracts as life insurance contracts, pre-contractual obligations, cooling-off periods, timing and modi operandi of benefits etc.).

Established in 1994, Cardif Lux Vie has strong expertise in insurance and financial products. Its in-depth knowledge of the needs of HNWI and UHNWI clients enables it to offer life insurance contracts that are fully compliant with the legislation of the EEA markets in which it operates.

A legal framework that ensures better protection for the subscriber

Clients of insurance companies based in the Grand Duchy of Luxembourg enjoy protection that is unique in Europe and and that represents a real advantage in terms of security. The principles established by the Luxembourg regulations are as follows:

  • assets linked to insurance policies must be segregated from the company’s other assets and deposited in separate bank accounts;
  • the choice of custodian bank is subject to approval by the supervisory authority (CAA - Commissariat aux Assurances);
  • the depositing of the assets must be covered by a three-way agreement referred to as the “Safety Triangle” signed by the Luxembourg insurance company, the custodian bank and the CAA;
  • the custodian bank is also obliged to segregate the assets linked to insurance policies from the bank’s assets; it is legally obliged to protect the interests of the policyholder;
  • subscribers have “super privilege” in the event of the company failing, ranking ahead of all other creditors including the Luxembourg Public Treasury, social security and the company’s employees.

Customised financial management

The Luxembourg regulations allow the subscriber to have access to a very wide range of innovative and sophisticated financial assets. This diversity in terms of the assets admissible for a Dedicated Internal Fund and the management options (discretionary, family, multi-management etc.), combined with the flexibility in the very design of the products, allows Cardif Lux Vie clients to benefit from specific advantages such as investment in foreign currencies etc.

Optimum tax neutrality

From a tax point of view the Luxembourg life insurance contract is completely neutral for non-residents of Luxembourg. The applicable tax regime for both the subscribers and the beneficiaries of a Luxembourg life insurance contract is that of their country of residence. Cardif Lux Vie will do everything in its power to keep its clients’ tax affairs as simple as possible. The tax treatment of the contract’s underlying assets can be optimised by making use of double taxation treaties, for example.


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