Why take out a life insurance policy in luxembourg? 

Life insurance and capitalisation policies  

Life insurance and capitalisation policies are multi-purpose investments which address a range of objectives: 

  • Maximise your capital 

  • Diversify your portfolio  

  • Build medium- or long-term precautionary savings 

  • Prepare for your retirement 

  • Finance a project 

  • Pass on your capital and protect your loved ones 

Life insurance is a wealth management and estate planning solution that gives you the best options for managing, retaining or passing on your assets. These policies offer you the ability to choose a custom-made investment strategy tailored to your personal situation and suited to your investor profile. 

The Luxembourg financial centre 

Located at the heart of Europe and a member of the European Union, Luxembourg is internationally recognised for its political, economic and political stability and financial solidity, which for many years have earned it an AAA rating from the leading rating agencies (Standard & Poor’s, Moody’s and DBRS Morningstar).  



With its openness to the world and its international influence, Luxembourg ranks among the leading financial centres in Europe and the world. 

The advantages of Luxembourg life insurance  

The benefit of a “super privilege”  

Luxembourg life insurance offers the policyholder an asset protection system that is unique in Europe, thanks to its Security Triangle. 

The Security Triangle and the Super Privilege: strict regulation, a security for the Policyholder 

The insurer has a legal obligation to deposit the policyholder’s assets with a depositary bank with which it has signed a tripartite deposit agreement, approved by the Commissariat aux Assurances (the Luxembourg regulator). This protection is known as the “Safety Triangle”. 


Luxembourg regulations also requires that the insurer maintains a strict separation of the free assets – comprising the insurance company’s assets and own funds – and the regulated assets, comprising the assets representing the policyholders’ life insurance and capitalisation policies. 

Luxembourg life insurance policy law thus gives the policyholder the status of a “super-privileged” creditor for the regulated assets, which takes precedence over all other types of creditors, including the State. This privilege is common to all policyholders, and is not on an individual basis. 

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Diversification of investment vehicles and financial assets

Luxembourg life insurance and capitalisation policies open the door to a wide range of investments. Policyholders can invest in a variety of assets (equities, bond funds, UCITS, etc.) via different unit-linked investment vehicles (internal, dedicated or collective, specialised insurance funds, external funds) in various currencies (EUR, USD, GBP, CHF), or in secure investments (Euro vehicle, US Dollar vehicle). 

The Luxembourg policy also enables the policyholder to include an advisory service (specialised insurance fund) in their policy, addressed to customers seeking expert advice from their adviser while at the same time retaining decision-making power over their own investments, and/or a delegation service (dedicated internal fund) allowing them to delegate some or all of the management of their policy to a professional via a mandate. 

Each investment strategy is defined according to the policyholder’s profile. 

The stability of the financial centre  

Luxembourg is the eurozone leading private banking centre. Its political stability and economic solidity have earned it the highest ranking from the main ranking agencies (AAA: Standard & Poor’s, Moody’s and Fitch).