Holders of Luxembourg life insurance policies enjoy triple protection thanks to Luxembourg’s specific regulatory framework:

• Segregation of underlying movable assets. Underlying movable assets are deposited in an approved custodian bank under the conditions set by the CAA, who may, at any time, block the accounts in order to protect the rights of policyholders. The Luxembourg life insurance contract is tax-neutral for non-residents. Its asset deposits are segregated from the assets of the insurance company.
• The CAA verifies the balance between the technical provisions and the underlying assets every quarter.
• Super-privilege in the event of company default. A holder of the Luxembourg policy is a first- ranking lien creditor (a “super-privileged creditor”). It is important to note that this super- privileged creditor has priority over the distribution pool of assets underlying each type of claim concerned (depending on whether the investment risk is borne by the policyholder). The contract is tailored to the subscriber’s country of residence, thus reducing the risk of taxation.
  This is the so-called triangle of security, which provides protective legal provisions in favour of the subscriber. Luxembourg Life Insurance contracts are the most reliable vehicles for wealth transfer and management.
  Luxembourg’s high degree of flexibility in contract design and asset management makes it one of the most suitable for Alma Europe’s clientele when seeking the most tax efficient structure for their assets, especially because of its tax neutral regime (premiums and capital gains are not taxed in Luxembourg and policyholders are benefitting from tax advantages from their tax authority country of residence). In addition, since it is a tax neutral vehicle, it is the perfect vehicle for succession planning; the beneficiary clause allows the insurer to choose the beneficiaries according to the policyholder’s personal circumstances.
  The benefits of a life insurance contract are clear: the insured clients can increase their savings by making additional deposits to their policies. If he or she dies, his or her spouse can claim the benefit on behalf of the remaining family.