By Olivier Grenon-Andrieu, Chairman of the Equance Group
Tailored financial management
Luxembourg contracts respond to fairly advanced asset strategies with an entry ticket of around 100,000 euros. These are contracts that show a very wide range of financial solutions. In addition to funds in euros or units of account, you can ask us for internal collective (or dedicated) funds under mandate management. Eg. funds invested in infrastructure (mostly unlisted), which constitute a diversified asset class and inherently meet environmental, social and governance (ESG) criteria.
Your savings can also be invested and managed in a foreign currency (in dollars for example). This peculiarity may appeal to those who want to diversify their investments in life insurance, but also to people who hold foreign currency assets that are directly reinvested in the contract without currency risk.
Reassuring capital protection
In Luxembourg, the money paid into life insurance is not held in the accounts of the insurance company, but is held by an independent custodian authorized by the Commissariat aux Assurances. We are talking about” safety triangle “.
The subscriber benefits from a super-privilege which gives him the status of first-rank creditor. In the event of the insurance company’s bankruptcy or of systemic risk, the insured is privileged over other creditors (even the state) to recover the funds from his life insurance contract as a priority.
Another shield, the guarantee from the Luxembourg State, represents 100% of the value of each contract against 70,000 euros per person and per insurance company for life insurance in France.
Joining a Luxembourg life insurance does not provide any specific tax advantage. But don’t get any either. It is actually the taxation in the subscriber’s country of residence that applies, in this case the one that applied in France for French taxpayers. For this purpose, we talk about a tax neutrality.
Investing in a contract in Luxembourg is therefore a perfectly legal operation, since any saver living on French territory can invest their savings in any country in the EU. Find out more.
EQUANCE INTERNATIONAL PRIVATE WEALTH is a Wealth Management consultancy founded in 2005. Its role is to support families (French residents and non-residents) in the management and improvement of their inheritance. Equance offers financial or real estate investments according to investors’ needs, expectations, situation and profile. These activities are controlled by the Financial Markets Authority (AMF) and the Prudential Control and Resolution Authority (ACPR). Equance’s independent consultants are present throughout France and in more than 50 countries.
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