Marie Daskalakis, Country manager France at WEALINS, a company specializing in life insurance based in Luxembourg, sheds light on the possibilities offered by this type of investment.
What advantages can investors expect from Luxembourg?
A Luxembourg life insurance contract can be taken out from any country.
It is entirely possible to contact a broker based in France, who will open a life insurance account in Luxembourg.
But before starting this process, it is important to understand the advantages offered by the Grand Duchy of Luxembourg.
Firstly, Luxembourg insurance companies operate under the freedom to provide services, and thus have a European passport allowing them to offer their solutions in all member countries of the European Union.
“
At Wealins, we are active in ten European markets and offer our solutions to tax residents of these countries or expatriates from these ten markets to different countries around the world.
Thanks to this free provision of services, French brokers also have access to our range of products
,” explains Marie.
Another advantage of Luxembourg is its maintenance of triple A, one of the few nations to retain it.
This gives the country considerable economic, political and social stability, in addition to providing the insurance sector with the strongest protection system in Europe.
In this regard, the “security triangle”, a tripartite agreement between the Insurance Commission (regulator), the insurance company and the custodian bank, is a key element.
This alliance guarantees subscribers that its assets are dissociated and separated from those of the insurance company.
They are thus outside the latter's balance sheet, unlike the French system, where they are included in the organization's assets.
As a result, in the event of the company's bankruptcy, the subscribers' assets are fully protected.
Added to this is the status of “first rank privileged creditor” that Luxembourg grants to subscribers: their interests are prioritized above those of all the company's other creditors, whether the State or the employees. .
This provision is particularly reassuring, especially in a sector that sometimes manages colossal assets.
In the event of failure of the insurance company, the subscriber can recover all his assets.
A significant advantage that Luxembourg has compared to France, where deposit guarantee is capped at 70,000 euros per depositor and per insurance company.
Luxembourg's strengths in life insurance: international openness and financial stability
What exactly can you find in a life insurance contract in Luxembourg?
What are the advantages of Luxembourg life insurance?
First of all, security, but also, diversification.
“
We often deal with high-net-worth clients who have already built up capital in France and have already invested in French real estate.
The objective is then to diversify assets by holding assets in Luxembourg, a country renowned for its stability.
In addition, in Luxembourg we have a much wider range of eligible assets than in French life insurance contracts.
This is particularly interesting for investors wishing to diversify their financial investments within a Luxembourg life insurance contract
,” explains Marie.
Another aspect highlighted by Marie is Wealins’ cross-border expertise.
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being present in several European markets, we are able to support our customers across Europe and even beyond European borders
”.
“
However, what investors will not find with us are tax advantages,
” specifies Marie.
The Luxembourg life insurance contract is adapted to the subscriber's residence tax system.
Thus, a customer residing in France will be subject to French legislation and taxation.
In the event of surrender of the life insurance contract, for example, French taxation will apply.
Despite this, the French are among the main customers of the Luxembourg life insurance contract.
So what attracts them?
“
It is important to note that the French greatly appreciate the life insurance contract,”
explains Marie
, “the Luxembourg contract simply complements what they already know and appreciate about insurance contracts.
What they are mainly looking for are solutions for expats.
For these profiles, Luxembourg offers tax neutrality, which means that in the event of relocation, for example to Portugal or Belgium, only Portuguese or Belgian taxation will affect their contract.
".
This fiscal neutrality is not present in French contracts, where there can even be double taxation.
This is therefore a major advantage for people considering relocation.
In addition, Luxembourg contracts are transferable and it is therefore possible, at any time, to transfer an old life insurance contract to a new, more recent and more attractive contract.
Multi-currency management and flexibility: The strong points of the life insurance contract in Luxembourg
One of the major advantages of the life insurance contract is its flexibility.
The latter can be truly adapted to the specific needs of each client.
For example, it is entirely possible to invest in financial investments denominated in euros or dollars.
“
Indeed,
one of the main advantages of the Luxembourg contract lies precisely in its multi-currency management.
Clients can invest in various currencies such as Dollar, Euro, British Pound, Canadian Dollar, and more without having to perform currency conversions.
This allows them to access investments in different currencies
,” explains Marie.
“
We focus exclusively on markets and unit-linked investments.
What is most appreciated is our personalized approach, where we collaborate with almost 500 financial managers based in France, Luxembourg, Switzerland, Monaco, and other countries.
Our clients can decide to work with one or more managers based on their goals and preferences.
As part of this personalized approach, we offer a diversity of assets available in Luxembourg, providing great investment freedom.
There is therefore no limit to what can be envisaged and achieved
.”
Wealins, an innovative vision for the future of life insurance in Luxembourg
Quite unexpectedly, Wealins stands out for its commitment to innovation within its services, an uncommon approach in the life insurance sector.
“Innovation is at the heart of our strategy.
There was a real cultural shift a few years ago, marked by a before and after COVID.
Today, thanks to our internal teams and our expertise, we seek to support our clients by proposing new projects focused on digitalization, while placing people at the center of innovation.
The objective is not to favor technology to the detriment of humans!
Thanks to these digital initiatives, we have become a reference in the Luxembourg life insurance market.
Our ambition is to consolidate our leading position in the field of digital offerings by continuing our transformation and always anticipating the future needs of our partners
,” concludes Marie.
The Luxembourg life insurance solution offers a synergy between flexibility, diversification and security, thus meeting the diverse expectations of the most demanding investors and savers.
Its adaptable and responsive character aligns perfectly with future developments in everyone's lives.
Nothing is fixed, everything is possible, thus offering a perspective focused on the future and innovation, where investment possibilities around the world and financial innovations are countless.