FAQ
Frequently asked questions
Short answers to the most common questions, even before the first meeting.
Security · Taxation · Fees · Structures · Life of the policy · The broker · First contact
Security and solidity
Is my capital guaranteed?
It depends on the investment vehicle chosen. A unit-linked vehicle remains exposed to market fluctuations; the security triangle protects ownership of your assets if the insurer or the depositary bank fails, it does not guarantee their value. The two notions are often confused, wrongly.
What is the security triangle, in practice?
A mechanism that keeps your holdings separate from the insurance company’s balance sheet: they are held with a distinct depositary bank, under the quarterly supervision of the Commissariat aux Assurances. Unlike a conventional guarantee fund with a cap, the protection covers the entirety of the assets held with the depositary bank, up to their actual value.
What happens if the insurance company becomes insolvent?
The super-privilege mechanism gives policyholders priority ranking for repayment, ahead of the Luxembourg State, the tax authorities, the company’s employees and ordinary creditors, under the conditions set out in the applicable regulation.
Is the broker themselves covered against errors?
Yes. The activity is covered by professional indemnity insurance with a minimum amount of €1,564,610 per claim and €2,315,610 in aggregate per year, in line with the European regulation in force since 2024.
Taxation and international mobility
Does Luxembourg let you escape tax?
No, and any presentation suggesting otherwise would be misleading. Luxembourg’s tax neutrality means the Grand Duchy levies no local tax on a policy taken out by a non-resident; it is the tax regime of your country of residence that applies, with no advantage or penalty attached to the mere fact of holding the policy in Luxembourg.
Why do some clients choose Luxembourg over a national policy?
Most often for portability (the policy follows a change of tax residence without a break), wealth mobility and a more open financial architecture, not for a tax reason, which for a given resident remains strictly identical to that of their own country.
What is the Sapin 2 law, and why is it mentioned so often?
It is a French law that allows, in the event of a serious threat to financial stability, the temporary suspension of surrenders on French policies. A policy governed by Luxembourg law is not subject to it, which explains its growing appeal for French residents seeking guaranteed liquidity.
I am moving to another country: what happens to my policy?
It continues, with no closure and no loss of seniority, and simply takes on the tax regime of your new country of residence.
Fees, remuneration and selection method
What are the real costs of a Luxembourg policy?
Four layers add up: entry fees (0 to 5%), management of the wrapper (0.5 to 1% per year), underlying investments (0.5 to 1.5% per year), depositary bank (0.1 to 0.3% per year). Full detail is on the Verified page.
How is the broker paid?
Exclusively through commissions paid by partner companies, with no fee charged to the client. This is the dominant model in the sector, made explicit rather than concealed.
If the broker is paid by the companies, how can I be sure they are choosing in my interest?
This is precisely the question the public selection methodology exists to answer, built on four verifiable criteria (solvency, depositary bank, specialisation, track record) that are independent of the level of commission.
Policy structures and access
What is the minimum amount to subscribe?
Generally between €100,000 and €125,000 for a standard policy on an Internal Collective Fund; from €250,000 for an individually managed Internal Dedicated Fund. These thresholds vary by company and are always checked before any proposal.
What is the difference between FIC, FID and FAS?
Full detail is on the Solutions page. In short: the FIC pools management across several policyholders, the FID individualises management from a higher threshold, the FAS opens access to unlisted assets for the largest estates.
Can I invest in a foreign currency?
Yes, a Luxembourg policy can be denominated in dollars, Swiss francs or pounds sterling, without going through a separate national policy for each currency.
What is Lombard credit, and what is it for?
A mechanism for obtaining liquidity, generally 50% to 70% of the portfolio’s value, depending on the lending institution’s policy and the nature of the assets pledged as collateral, without a surrender, and therefore without triggering taxation or interrupting the investment strategy under way.
Life of the policy
Can I withdraw my money at any time?
Yes, a partial or total surrender remains possible at any time, subject to each company’s own conditions. The policy’s liquidity is, in fact, one of its strengths when set against a mechanism such as the Sapin 2 law.
What happens to the policy on death?
The capital is passed to the beneficiary named in the beneficiary clause, whose drafting flexibility allows for finely organised transmission, including in complex family situations.
The detail of the drafting options for this clause is on the Family Structuring page.
Can I change company after subscribing?
Changing company generally involves surrendering the existing policy and taking out a new one, with the tax and fee consequences that implies. This is a decision to weigh case by case, never a routine step.
An independent review of your current policy, before any decision, remains available at no obligation.
The broker, their status, professional collaboration
How can I verify that the broker is genuinely licensed?
The licence number (2020CP007) can be checked directly on the public register of the Commissariat aux Assurances, in one click from any page on the site.
What difference does independence actually make?
No capital ties to any insurance company, bank or asset manager. The full legal detail of this status is on the Status & Remuneration page.
I am a wealth manager or tax lawyer: how do we work together?
A dedicated space exists, with the way of working together specified according to your profile (family office, wealth adviser, lawyer or tax adviser, private bank) to clarify roles before any conversation. See the Partners page.
First contact
Does the first meeting commit me to anything?
No. It is a 20-minute conversation to understand your needs, with no commitment on your part, and no product recommendation at this stage.
Do I need to prepare documents before the meeting?
No preparation is necessary. If you already have an idea of the amount you have in mind, it speeds up the conversation, though it is not essential.
This FAQ will grow with the questions actually asked in meetings, rather than staying fixed on anticipated ones. A question not answered here? Book a consultation →