Flexible and Tailored Solutions
Unit-linked life insurance is an essential tool for wealth preservation and estate planning. It can be tailored to meet the specific needs of individuals and their families.
Recognised Wealth Management Benefits
- Freedom to designate and/or change beneficiaries at any time, even if they are not the legal heirs, and to allocate specific amounts to each beneficiary.
- Tax deferral on income capitalised within the life insurance contract as long as no withdrawal is made.
- Life insurance contracts taken out with a Luxembourg company may allow access to the impatriation regime.
- Death benefit is excluded from the policyholder’s estate.
- The life insurance contract is not subject to the “Exit Tax”.
- Simplified reporting obligations.
- In the event of partial or full withdrawal, returns on premiums paid since 27 September 2017 are subject to the “Flat Tax” at a rate of 30% (including 17.2% social contributions and 12.8% single flat-rate levy), or to the progressive income tax scale. Returns on premiums paid before 27 September 2017 are taxed, at the taxpayer’s choice, either via the flat-rate withholding tax (PFL) or the progressive income tax scale.
- Preferential inheritance tax regime under Article 990 I of the French General Tax Code (CGI) when premiums were invested before the insured’s 70th birthday: €152,500 exemption, then a fixed tax rate of 20% up to €700,000 and 31.25% beyond that.
- Changing financial manager or custodian bank does not affect the contract’s capitalisation benefits.
Unmatched Investment Universe
- Flexibility in selecting underlying assets within the framework of the Specialised Insurance Fund (per the rules of the Commissariat Aux Assurances – CAA).
- Ability to consolidate financial asset management within a single capitalising bond.
- Possibility of having multiple custodian banks and financial managers.
- Ability to use the contract as collateral for a loan.
- Multi-currency management options.
Portability
Contract portability requires tailored support for policyholders. We are equipped to handle the specific needs of international mobility:
- Active in over 20 markets with dedicated experts.
- More than 50 wealth structuring experts.
Asset Diversification
Unit-linked life insurance allows investment in private placements (non-traditional assets or “Private Equity”).
Private placements are alternative assets with higher intrinsic risk profiles than traditional assets, typically due to:
- Lack of valuation or listing on unregulated or OTC markets.
- Limited transferability.
- Reduced liquidity.
Why include Private Equity in a life insurance contract?
- Potential for higher long-term returns.
- Requires a capitalising wrapper (life insurance or capitalisation contract) to defer taxation and/or offset gains and losses over the Private Equity lifecycle (“J-curve”).
- Aims to increase the policyholder’s wealth, support future income needs, and reduce inheritance costs through life insurance tax benefits.
- Capital invested in unit-linked supports is not guaranteed and may fluctuate up or down depending on financial and/or property market trends. These supports carry a risk of partial or total capital loss.
Flexibility and Luxembourg Asset Protection Regime
- Ability to use the contract as loan collateral.
- Protection from seizure by third parties (excluding tax debts, etc.).
- Benefit from one of Europe’s strongest protection regimes, known as the Luxembourg “Triangle of Security”.
