Mortgage Protection Insurance Cost in Luxembourg 2026
In Luxembourg, mortgage protection insurance (assurance solde restant dû) costs between 0.10% and 1.50% of the insured capital per year, depending on your profile. For a €500,000 loan over 25 years, expect to pay between €15,000 and €70,000 in total as a single premium, or €500 to €3,000 per year with decreasing periodic premiums. The key factors: your age (a 30-year-old pays 4 to 6 times less than a 60-year-old), smoker status (30–60% surcharge), your health, and the cover chosen (death only, or death plus total and permanent disability).
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Compare mortgage protection insurance →Price ranges by age in Luxembourg
There is no single price for mortgage protection insurance — every policy is calculated individually based on your risk profile. Luxembourg insurers use pricing grids built on actuarial data that factor in your probability of death or disability over the life of the loan. Below are indicative ranges for June 2026 for a non-smoker in good health, death-only cover, with decreasing periodic premiums.
| Age bracket | Annual rate (% of capital) | Premium per €100,000 | Notes |
|---|---|---|---|
| 25–30 | 0.10–0.20% | €100–200/yr | Non-smoker, good health, no medical history — lowest rates |
| 30–35 | 0.15–0.25% | €150–250/yr | Standard profile — most common bracket for first-time buyers |
| 35–40 | 0.20–0.35% | €200–350/yr | Peak home-buying age in Luxembourg — rates still reasonable |
| 40–45 | 0.30–0.50% | €300–500/yr | Statistical risk rising — detailed health questionnaire often required |
| 45–50 | 0.40–0.70% | €400–700/yr | Additional medical tests frequently required |
| 50–55 | 0.60–1.00% | €600–1,000/yr | Significantly higher premiums — in-depth health questionnaire |
| 55–60 | 0.80–1.30% | €800–1,300/yr | Blood and urine tests often mandatory |
| 60–65 | 1.00–1.50%+ | €1,000–1,500/yr+ | Maximum rates — acceptance subject to health status |
Indicative estimates by Switchr — June 2026. Profile: non-smoker, good health, death-only cover, decreasing periodic premium. Final rates depend on the individual health questionnaire.
Important: these rates apply to the outstanding loan balance each year (decreasing capital). Your premium therefore falls over time. With a single premium, the overall cost is calculated across the entire loan repayment schedule. Add +20–40% for total and permanent disability (TPD) cover, and +30–60% if you are a smoker.
To understand how your payment method affects total cost, see our single premium vs periodic premium comparison. To make the most of your tax relief, read our guide on mortgage insurance tax deduction.
7 factors that affect your mortgage protection premium
Your mortgage protection insurance premium is never arbitrary — it reflects your actuarial risk as assessed by the insurer. The higher the statistical probability of death or disability over the loan term, the higher the premium. Here are the seven variables that directly affect your rate.
Your age at inception
Impact: a multiplier of 4 to 10. A 30-year-old typically pays 0.15–0.25% of capital per year, compared with 1.00–1.50% at age 60. The increase is exponential: every five additional years of age adds roughly 30–50% to the premium. The peak subscription age in Luxembourg is 35–40, when rates are still reasonable (0.20–0.35%). Beyond 50, premiums rise steeply.
Smoker vs non-smoker status
Impact: +30 to +60% surcharge. Luxembourg insurers routinely apply a loading for smokers, based on mortality statistics. A 35-year-old smoker will pay a rate comparable to a non-smoker aged 42–45. Some insurers offer a non-smoker rate if you have not smoked for at least 24 months, subject to a signed declaration and, in some cases, a medical check.
Your health status
Impact: from 0% (no surcharge) to outright refusal. The health questionnaire is the cornerstone of pricing. Insurers assess cardiovascular history, diabetes, psychological conditions, back problems, cancer and chronic illnesses. Depending on the condition and its history, you may face a premium surcharge, a cover exclusion or a declined application. For high loan amounts (generally above €300,000 to €500,000 depending on the insurer), additional medical tests are required.
Loan amount and term
Impact: proportional to capital and duration. The higher the insured capital and the longer the term, the greater the total premium. A 30-year loan typically costs 10–20% more than a 20-year loan for the same amount, since the risk extends over a longer period and the policyholder will be older at the end of the contract.
Cover options selected
Impact: +20 to +80% depending on options. Death-only cover is the base rate. You can add: TPD (Total and Permanent Disability) (+20–40% on the base premium), offered by LALUX, AXA Domia, Baloise and Foyer; a permanent disability pension or benefit (partial or total permanent disability, +30–50%, available from AXA Domia); or an accident cover (decreasing capital in the event of disability through accident, available notably from AXA Domia).
Occupation and hazardous activities
Impact: +20 to +100% surcharge possible. Certain occupations or leisure activities increase the statistical risk: working at height, pilots, seafarers, firefighters, handling explosives, sports pursued professionally or for remuneration. AXA Domia explicitly lists these cases in its policy conditions, with coverage available subject to a loading.
Number of policyholders and cover shares
Impact: risk pooling. If two people take out the policy together (a couple or co-borrowers), the combined premium is not simply doubled — insurers apply a pooling coefficient. You can freely choose the split: 50%/50% (on the death of one policyholder, half the outstanding balance is repaid) or 100%/100% (on the death of one policyholder, the full outstanding balance is repaid), or any other split suited to your respective incomes.
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Compare mortgage protection insurance →How insurers calculate the mortgage protection premium
Your mortgage protection insurance premium is the result of a precise actuarial calculation. Two methods coexist depending on the payment structure chosen: single premium (paid in full at inception) or periodic premiums (spread over the life of the loan).
Single premium
The insurer calculates the cumulative risk over the entire loan term using three parameters: the amortisation curve (the insured capital decreases each year as the outstanding balance falls), the rising mortality rate (risk increases as the policyholder ages) and a discount rate (money available today is worth more to the insurer than money received in the future).
Indicative example: €500,000 loan over 25 years, 35-year-old non-smoker, death cover only. Estimated single premium: €15,000 to €20,000.
Periodic premiums
The premium is calculated each year by applying the agreed rate to the outstanding balance at that point. As a result, the premium decreases each year alongside the capital. Example: Year 1 (€500,000 × 0.22%) → ~€1,100 · Year 10 (~€320,000 × 0.22%) → ~€700 · Year 20 (~€120,000 × 0.22%) → ~€260. AXA Domia and Baloise offer instalment payment (annual, semi-annual, quarterly or monthly) to suit the policyholder’s preferences.
Insurers use certified mortality tables and risk coefficients specific to each profile (smoker, health status, occupation). The Commissariat aux Assurances (CAA) supervises these methodologies to ensure their consistency and fairness.
Real-world pricing examples in Luxembourg
To illustrate the price ranges, here are six typical borrower profiles with cost estimates based on June 2026 pricing grids. All examples assume a standard repayment mortgage (decreasing capital), death + TPD cover, primary residence.
| Profile | Loan | Estimated single premium | Year 1 (periodic) | Total periodic premiums |
|---|---|---|---|---|
|
Young couple
Aged 28 & 30 · non-smokers · good health
Optimal profile
|
€400,000 25 years |
€10,000–14,000 | €700–900 | €14,000–18,000 |
|
Single professional
Age 35 · non-smoker · office worker
|
€500,000 25 years |
€15,000–20,000 | €1,000–1,300 | €18,000–24,000 |
|
Couple in their forties
Aged 42 & 44 · 1 smoker · minor health history
Smoker loading
|
€650,000 20 years |
€35,000–48,000 | €2,200–2,800 | €32,000–42,000 |
|
50-something borrower
Age 52 · non-smoker · controlled diabetes
Health loading
|
€350,000 15 years |
€28,000–36,000 | €2,400–3,000 | €25,000–33,000 |
|
Active senior
Age 58 · non-smoker · good health
|
€300,000 12 years |
€30,000–40,000 | €3,000–4,000 | €27,000–36,000 |
|
Buy-to-let investor
Age 45 · non-smoker · 2nd property
|
€800,000 25 years |
€42,000–55,000 | €3,200–4,200 | €50,000–65,000 |
Indicative estimates by Switchr — June 2026. Death + TPD cover, decreasing capital. Final rates depend on the individual health questionnaire and each insurer’s specific conditions.
These figures are indicative estimates. Actual pricing depends on your detailed health questionnaire and may vary by ±20–30%. It is essential to request several quotes from different insurers — the gap can reach 30–40% for the same profile. Use our online comparison tool to compare available offers.
Luxembourg mortgage protection insurers
Mortgage protection premiums are not standardised in Luxembourg. Each insurer uses its own actuarial tables and underwriting policy. For the same profile, price differences can reach 30 to 40%. Here is an overview of the main market players and their key features, based on their official documents.
| Insurer | Product | Available cover | Key features |
|---|---|---|---|
|
LALUX
Grand Duchy’s leading life insurer
|
Assurance Solde Restant Dû (easyLIFE range) |
Death · TPD | LALUX-Vie ownership (Compagnie Financière La Luxembourgeoise + Spuerkeess) · Confirmed tax deductibility · Contract amendments possible during the policy term (cover, duration, payment method) |
|
Foyer
195 agencies in Luxembourg
|
TSRD Focus Investissement (Temporaire Solde Restant Dû) |
Death · TPD | Right to be forgotten signed since 1 January 2020 (ACA convention — applicable to cancer conditions) · Online rate simulation available · Extensive agent network · MyFoyer app |
|
AXA
Streamlined underwriting
|
Domia (Assurance Décès Temporaire SRD) |
Death · TPD · Accident cover · Permanent disability benefit (partial or total) with premium waiver | Minimal medical formalities in most cases · Single or instalment payment (annual, semi-annual, quarterly, monthly) · Hazardous activities covered subject to loading · Pre-insurance available before first repayment |
|
Baloise
Swiss group — present since 1890
|
Assurance Solde Restant Dû Baloise Vie Luxembourg S.A. |
Death · TPD (optional) | Worldwide cover · Joint application possible · Right to be forgotten signed since 1 January 2020 (ACA convention) · Cancellation possible within 30 days of signing |
|
BGL BNP Paribas / Cardif
Via bank network
|
Mortgage protection insurance Distributed through BGL BNP Paribas |
Death · Additional cover subject to conditions | Policy tied directly to the BGL mortgage · Premium can be incorporated into the loan in some cases · For exact conditions, contact BGL BNP Paribas directly |
Our view: Systematically comparing 3 to 5 quotes is essential to find the best value for your profile. Underwriting policies differ considerably from one insurer to another, particularly for applicants with a medical history. The right to be forgotten applies at all ACA convention signatories (including Foyer, Baloise, AXA and LALUX) since 1 January 2020: if you have had cancer, enquire about the applicable waiting periods. Never accept your bank’s offer without comparing first — bank distribution commissions consistently inflate the premium.
Single premium vs periodic premiums: what impact on total cost?
The choice between a single premium and periodic premiums has a direct impact on the total cost of your policy and on your tax planning. Both options are available from all Luxembourg insurers (LALUX, AXA Domia, Baloise, Foyer). Here are the financial pros and cons of each.
Single premium
- Total cost 10–20% cheaper than periodic premiums
- Rate locked in at inception — no revisions possible
- Immediate enhanced tax relief: up to €15,600 (depending on age and family situation)
- Simple administration: one premium to manage
- Ties up significant capital upfront (€15,000–50,000 depending on the loan)
- In the event of early repayment, the premium paid is generally not refunded (unless otherwise stated in the contract)
Periodic premiums
- No significant upfront outlay
- Decreasing premiums: the amount falls each year with the outstanding balance
- Flexibility if the loan is repaid early
- Recurring annual tax relief: €672/person/year (€1,344 for a couple)
- Higher total cost over the term (10–20% more than a single premium)
- Tax relief ceiling shared with other deductible insurance (car liability, home insurance, etc.)
5 concrete ways to cut your mortgage protection costs
Your mortgage protection premium is not set in stone — you can act on several variables to get a better price. Here are five strategies that can save you 10 to 40% on total cost.
Compare multiple quotes
Potential saving: 20–40%. Price differences between insurers can reach 30–40% for the same profile. Never settle for the offer your bank puts forward — bank distribution commissions consistently inflate the premium. Use our online comparison tool or work with an independent broker who negotiates on your behalf with multiple insurers. Time required: around 30 minutes. Average saving observed: several thousand euros over the life of the loan.
Stop smoking before taking out the policy
Potential saving: 30–60%. If you smoke, stop at least 24 months before applying. You will then qualify for the non-smoker rate under insurers’ conditions. Luxembourg insurers verify smoking status via signed declaration and, in some cases, medical tests. If you have already taken out a policy as a smoker, ask your insurer whether a rate review is possible after 24 months of complete abstinence.
Tailor cover shares to your respective incomes
Potential saving: 10–30%. As joint borrowers, you are not required to each be insured for 100%. The bank requires full loan coverage, but you can distribute it freely: 50%/50%, 70%/30%, or any other split suited to your respective incomes. A 50%/50% structure costs less than 100%/100%, while still ensuring that each death triggers repayment of half the outstanding balance.
Match your cover to your actual needs
Potential saving: 20–40%. Death-only cover is often sufficient to meet the bank’s requirements and costs 20–40% less than the death + TPD package. Add TPD only if your professional situation justifies it (self-employed, physically demanding occupation). Additional cover increases the premium without being systematically required by the bank.
Take out cover early
Potential saving: 30–60%. Age is the number one pricing factor. Each additional year adds an average of 5–8% to the premium. If you are planning a property purchase in the next 2–3 years, find out now about options for early policy inception or portable contracts — you would lock in your current rate. The saving over 25 years can amount to several thousand euros compared with applying a few years later.
Surcharges and loadings: when your premium goes up
The base rates in pricing grids assume a « standard » profile: non-smoker, no medical history, non-hazardous occupation, normal BMI. As soon as you deviate from this profile, the insurer may apply a loading to compensate for the increased risk. Here are the most common cases in Luxembourg.
| Risk factor | Indicative loading | Details |
|---|---|---|
| Active smoker | +30 to +60% | Cigarettes, cigars, pipe, nicotine vaping · Stopped <24 months ago · Verified via signed declaration and/or medical tests |
| Overweight / Obesity | +10 to +50% | BMI > 27: +10–20% · BMI > 30: +25–40% · BMI > 35: +50% or possible refusal · Blood tests often required |
| Hypertension | +15 to +40% | Mild controlled HBP: +15–20% · Moderate or severe HBP: +30–40% or cardiovascular exclusion |
| Type 2 diabetes | +20 to +60% | Well-controlled diabetes (HbA1c < 7%): +20–30% · Poorly controlled or with complications: +40–60% or refusal |
| Cardiovascular history | +40 to +100% or refusal | Heart attack, stroke, angina, bypass surgery: high loading or refusal depending on history and after-effects · Waiting period may apply after the event |
| Cancer in remission | Variable or 0% (right to be forgotten) | Right to be forgotten: convention signed 29 October 2019 (in force since 1 January 2020) with 8 Luxembourg insurers including Foyer, Baloise, AXA and LALUX. After a relapse-free period (generally 10 years, 5 years for cancers diagnosed before age 18), certain cancer conditions no longer need to be declared. |
| Psychological conditions | +20 to +50% or exclusion | Treated mild depression: +20–30% · Severe depression, bipolar disorder: +40–50% or exclusion from TPD cover |
| Back conditions | +15 to +40% or exclusion | Disc hernias, chronic lower back pain, recurring sciatica: often excluded from TPD cover or loading of 25–40% |
| Hazardous occupation | +20 to +80% | Working at height, seafarers, pilots, firefighters, handling explosives (non-exhaustive list) · AXA Domia explicitly lists these occupations in its conditions, with coverage available subject to a loading |
| Hazardous activities / sport | +20 to +60% or exclusion | Paid or professional sports · Acrobatic performances · Loading or exclusion possible depending on each insurer’s conditions |
Sources: general conditions and IPID documents from Baloise Vie Luxembourg, AXA Assurances Vie Luxembourg (Domia), LALUX, Foyer.
Beware of cumulative loadings: if you combine several risk factors (smoker + overweight + hypertension), loadings are added together or multiplied depending on the insurer. The final premium can exceed double the base rate. In such cases, it is particularly important to compare several insurers — their underwriting policies differ, and some are more willing to accept complex profiles.
If you have a medical history, see our medical questionnaire guide to prepare your application.
True cost of mortgage protection insurance after tax relief
The headline price of a mortgage protection policy is never the final cost you will bear. In Luxembourg, premiums are deductible from taxable income under Article 111 of the LIR (Luxembourg Income Tax Act), which significantly reduces your effective cost. Here are the deductible ceilings confirmed by official insurer documents.
Tax relief — Periodic premiums (Art. 111 LIR)
| Family situation | Single | With spouse |
|---|---|---|
| No children | €672/year | €1,344/year |
| 1 dependent child | €1,344/year | €2,016/year |
| 2 dependent children | €2,016/year | €2,688/year |
| 3 dependent children | €2,688/year | €3,360/year |
| 4 dependent children | €3,360/year | €4,032/year |
| Each additional child | +€672/year | +€672/year |
Tax relief — Single premium (Art. 111 LIR)
| Age at inception | No children | 1 dependent child | 2 dependent children |
|---|---|---|---|
| ≤ 30 | €6,000 | €7,200 | €8,400 |
| 35 | €8,400 | €10,080 | €11,760 |
| 40 | €10,800 | €12,960 | €15,120 |
| 45 | €13,200 | €15,840 | €18,480 |
| ≥ 50 (maximum ceiling) | €15,600 | €18,720 | €21,840 |
Legal formula (Art. 111 LIR, LIR Circular No. 111/1 of 2 November 2017): base ceiling = €6,000 + €1,200 per dependent child. Above age 30: the base ceiling is increased by 8% for each completed year above 30, up to a maximum of 160% (i.e. 20 years maximum). Each policyholder spouse has their own ceiling. Applicable to the primary or business residence only, renewable every 5 years.
Worked example — true cost after tax: Single premium: €18,000 · Age at inception: 38 · Couple, no children · Deductible ceiling (per policyholder): 6,000 × (1 + 8% × 8) = 6,000 × 1.64 = €9,840 · Marginal tax rate: 38% · Tax saving: 9,840 × 38% = €3,739 · True cost: €14,261. Formula: True cost = Premium paid − (Deductible ceiling × Marginal tax rate).
The annual €672/person ceiling for periodic premiums is shared across all deductible special expenses (car liability, home insurance, supplementary health, etc.). If you already reach this ceiling through your other insurance, the mortgage protection deduction will be nil or partial. In that case, the single premium is particularly advantageous — its ceiling is separate and considerably higher. To calculate your exact saving, visit the ACD website or read our full mortgage protection tax deduction guide.
Frequently asked questions about mortgage protection insurance costs
How much does mortgage protection insurance cost in Luxembourg?
The price ranges from 0.10% to 1.50% of the insured capital per year depending on your profile. For a €500,000 loan over 25 years, expect to pay between €15,000 and €70,000 in total, depending on age, smoker status and the cover chosen. A non-smoking 30-year-old in good health will fall towards the lower end of this range. Compare multiple offers using our comparison tool to find the precise rate for your profile.
What is the price difference between smokers and non-smokers?
The loading for smokers is +30 to +60% in Luxembourg. On a €500,000 loan, that adds up to several thousand euros in additional total cost. To qualify for the non-smoker rate, you generally need to have given up tobacco for at least 24 months. If you have already taken out a policy as a smoker, ask your insurer whether a rate review is possible after 2 years of complete abstinence.
Is a single premium cheaper than periodic premiums?
Generally, yes. A single premium is 10–20% cheaper than the sum of periodic premiums over the loan term. It also benefits from a considerably higher tax relief ceiling (up to €15,600 depending on age, vs €672 per person per year for periodic premiums). The trade-off is that it ties up significant capital upfront. See our single vs periodic premium guide for a detailed breakdown.
Can I choose a different insurer from my bank?
Yes, you are legally entitled to. You are not required to take the insurance offered by the bank granting your mortgage. The bank can require cover, but you are free to choose your insurer, provided the level of cover is deemed equivalent by the bank. Bank-tied policies are often 20–40% more expensive because banks receive sizeable distribution commissions. Always compare 3 to 5 offers via an independent comparison tool before deciding.
What is the true cost after tax relief?
The true cost depends on your marginal tax rate (MTR). Example: single premium of €18,000, deductible ceiling of €9,840 (couple, age 38, no children), MTR of 38% → tax saving of €3,739 → true cost of €14,261. The higher your income, the greater the tax benefit. For senior managers (MTR 40–42%), the State effectively covers a significant share of the cost. Read our tax deduction guide for full details.
How do insurers calculate the premium?
Insurers use certified mortality tables and apply risk coefficients based on your profile (age, smoker status, health, occupation, cover chosen). The calculation accounts for the decreasing capital (which falls with the loan) and a discount rate. For a single premium, the insurer aggregates risk over the entire loan term. For periodic premiums, the agreed rate is applied each year to the outstanding balance. The Commissariat aux Assurances oversees these methodologies.
What loadings apply if I have health issues?
Loadings vary by condition: mild hypertension: +15–20% · controlled diabetes: +20–30% · obesity (BMI > 30): +25–40% · cardiovascular history: +40–100% or refusal · cancer in remission: variable, or 0% via the right to be forgotten (ACA convention signed by Foyer, Baloise, AXA, LALUX and others, in force since 1 January 2020). If you combine several factors, loadings accumulate. Compare multiple insurers — their underwriting policies differ considerably.
Can my premium increase during the policy term?
It depends on the premium type. With a guaranteed rate, the premium is contractually fixed and cannot be revised. With a non-guaranteed rate, the insurer can revise rates in line with changes in mortality statistics. Ask about this point when taking out the policy. In practice, upward revisions are rare in Luxembourg given the long-term trend towards increasing life expectancy.
Can I amend my policy during the term?
Yes, in many cases. LALUX explicitly states in its documentation that it is possible to increase or decrease cover, change the duration or switch payment method during the policy term, subject to the conditions set out in the contract. Some policies also allow premium holidays (with a reduction in cover) or policy surrender. Baloise requires policyholders to notify any change of occupation, residence outside the EU or sporting activities that may increase the risk.
How can I reduce the cost of my mortgage protection insurance?
Five ways to save: compare 3–5 quotes via an independent comparison tool (saving: 20–40%) · stop smoking 24 months before applying (saving: 30–60%) · optimise cover shares based on your respective incomes as joint borrowers (saving: 10–30%) · tailor cover to your actual needs — death only vs death + TPD (saving: 20–40%) · act early and take out cover as soon as possible (saving: 30–60%). See the 5 ways to cut your costs section for details.