Everything you need to know about life insurance in Luxembourg.
What is the best life insurance in Luxembourg?
▼In September 2026, the best contract depends on your goal, and each goal has a clear winner. Security and transmission: LALUX easyLIFE Mixte — a 1.75% rate guaranteed for the whole term, the lowest risk (1/7), a 226% solvency ratio and exemption from inheritance tax in the direct line; it is the strongest on guarantee and transmission. Best realised net return: AXA Borea Invest — 2.60% net in 2025 (versus 2.35% in 2024), capital 100% guaranteed, making it the highest net return in the comparison, ahead of LALUX's 1.75% guarantee. Responsible investor (ESG): Foyer invest4change — the only contract dual-labelled LGX and LuxFLAG Sustainable Insurance; LALUX easyLIFE Invest for Future also carries the LuxFLAG Sustainable Insurance label and gives access to 8 sustainable SFDR Article 8 and 9 funds. Financial rating and digital: Baloise Life Plan — an S&P A+ rating and a 100% digital FAS with Swissquote, the strongest on financial strength. For access: monthly payments from ~€50/month (LALUX, Baloise), €200/month (Foyer invest4change), or a €2,500 first payment (AXA).
What is the Luxembourg security triangle?
▼It is a protection mechanism unique in Europe based on three players: the insurer, an approved custodian bank and the CAA. Your assets are physically separated from the insurer's balance sheet and deposited with the custodian bank in a segregated account. The super-privilege ranks you as a first-rank creditor, with no ceiling (unlike the French FGAP capped at €70,000). The scheme is reinforced by the law of 10 August 2018.
What are the 4 local life insurers in Luxembourg?
▼Four local insurers supervised by the CAA offer life insurance to the general public: LALUX (easyLIFE — Mixte, Invest for Future with the LuxFLAG Sustainable Insurance label, and Prévoyance — Luxembourg-based, 226% solvency), Foyer (protect4life from €25/month, smartlife and invest4change, 1st LGX- and LuxFLAG Sustainable Insurance-labelled contract), Baloise (Life Plan, S&P A+ rating, five ESG internal collective funds “BIF – Eticx”, 100% digital FAS with Swissquote) and AXA (Borea Invest, net guaranteed rate 1.75%/year for 8 years, 2.60% net return in 2025). Entry tickets range from €25/month (Foyer protect4life) to a €2,500 first payment (AXA Borea Invest).
Can a French resident open a Luxembourg life insurance?
▼Yes, any French resident can take out a Luxembourg life insurance. The taxation applied is French (30% flat tax, allowance after 8 years, art. 990 I CGI for inheritance). The advantages lie in the enhanced protection (uncapped super-privilege vs €70,000 FGAP), the absence of the Sapin 2 law and access to a broader investment universe. An annual declaration (form 3916-BIS) is mandatory for any account held abroad.
What is the taxation of Luxembourg life insurance?
▼Luxembourg is tax-neutral: it taxes neither the premiums paid, nor the gains generated, nor the capital passed on death. It is your country of residence's taxation that applies. For Luxembourg residents, surrenders are not subject to income tax (under conditions) and direct-line transmission benefits from a full inheritance-tax exemption under Luxembourg law.
What is a FID and a FAS?
▼The FID (Dedicated Internal Fund) is a bespoke investment portfolio managed by an approved manager, accessible from profile C (€250,000 net financial wealth per CAA circular 26/1, in force since 1 February 2026 and replacing LC 15/3). The FAS (Specialised Insurance Fund) allows free or advised management with a broader investment universe. Both are reserved for profiles C and D and give access to assets not available in standard contracts (private equity, private debt).
How does a Lombard loan on life insurance work?
▼A Lombard loan is a loan secured by your life insurance contract pledged as collateral. The bank typically lends 50 to 70% of the value of your pledged assets. The major advantage: the loan is not taxable income, allowing you to obtain liquidity without triggering tax on your gains. The main risk is a margin call if assets fall below the coverage threshold.
Is Luxembourg life insurance subject to the Sapin 2 law?
▼No. The Sapin 2 law gives the French HCSF the power to temporarily freeze withdrawals on French life insurance contracts. Luxembourg contracts are not subject to it because they fall under Luxembourg law and are supervised by the CAA. It is one of the key advantages of the security triangle.
How much does life insurance cost in Luxembourg?
▼Annual management fees range from about 0.30% to 1.00% depending on the assets invested, plus custodian bank fees (0.03 to 0.10%). Fees become very competitive from €250,000 of assets. Watch the exit charges too, which vary widely: 0% at maturity at AXA Borea and Foyer protect4life, 2% at LALUX Invest for Future, but 10% at Baloise Life Plan, unwinding at only one point a year over the contract's last 10 years. Pricing is always personalised: Foyer protect4life starts at €25/month, LALUX easyLIFE Invest for Future from €50/month with a single premium from €1,000, AXA Borea Invest requires a first payment of €2,500, and international wealth contracts start at €100,000.
Can you pass on wealth via Luxembourg life insurance?
▼Yes, it is one of the major strengths. For Luxembourg residents, direct-line heirs benefit from a full inheritance-tax exemption. For French residents, the €152,500 allowance per beneficiary applies to payments made before age 70 (art. 990 I CGI). The beneficiary clause is free and amendable at any time.
What is the return on Luxembourg life insurance in 2025-2026?
▼It depends on the underlying. On guaranteed-rate funds, LALUX easyLIFE Mixte shows 1.75% guaranteed for the whole term and AXA Borea a net guaranteed rate of at least 1.75% for 8 years (total net return 2.60% in 2025). On unit-linked funds (ESG, equities, bonds), the return is not guaranteed and depends on markets. Luxembourg lets you combine security and performance in one contract.
What is the minimum amount to open life insurance in Luxembourg?
▼For a standard savings contract, payments start low: from €25/month at Foyer (protect4life, which combines protection and savings), €50/month or a €1,000 single premium at LALUX (Invest for Future), €50/month or a €2,500 single premium at Baloise (Life Plan), and a €2,500 first payment at AXA (Borea). Foyer's invest4change ESG range starts at €200/month. High-end wealth contracts (with dedicated FID/FAS funds) become fully worthwhile from around €125,000 to €250,000 (CAA profiles). Luxembourg therefore suits both modest savers and large estates.
Can you access your money whenever you want on a Luxembourg life insurance policy?
▼Yes. Unlike pension savings, life insurance stays accessible: you can make a partial or full surrender at any time. At the contract's maturity (recommended term of at least 8 to 10 years) there are generally no exit fees; for an early surrender, decreasing fees may apply depending on the contract. Taxation depends on your country of residence (neutral in Luxembourg).
