Luxembourg Life Insurance advantages for French Residents

• Free designation of the beneficiary or beneficiaries at any time
• Absence of taxation if no redemption is made during the life of the contract
• Tax benefits in the event of redemption after 8 years of ownership of the life insurance policy
• A way of passing on assets:
  • The capital payable on the death of the policyholder does not enter into the deceased’s estate.
  • Capacity to transfer capital freely to the selected beneficiaries.
  • Total exemption from inheritance tax if the beneficiary of the contract is the spouse or partner under a civil union.

Focus on endowment contracts 

• Endowment contracts benefit from the same tax treatment as life insurance during the life of the policyholder, in the event of redemption. The only tax difference lies in the settlement of the contract in the event of death. Unlike life insurance, endowment contracts are not unwound in the event of death. They are passed on to heirs, and are included in the estate. They therefore retain all benefits, including the prior tax benefit of the endowment contract. In addition, the policyholder may gift the endowment contract to a third party during his or her lifetime. The subscription period is chosen freely, but cannot be longer than 30 years.