Moving abroad for professional reasons or to prepare for retirement requires more than pure logistical organisation. Managing your assets in the scope of such a mobility requires careful anticipation and a true understanding of local regulations. The Luxembourg life-insurance policy is a strategic tool here.

Luxembourg life-insurance stands out with its ability to adapt to the tax and legal specificities of many jurisdictions. Portability allows policyholders to keep their policy when moving their residence, while adjusting it, if necessary, to local requirements. Some countries (Spain, Italy) require the amendment of the contract’s features by adding a death cover, says Frédéric Sauvage, Sales Director France for Baloise Vie Luxembourg. This is not the case in Portugal, Belgium or France.

The major challenge lies in preparation. An in-depth analysis of local legislation and double tax treaties is essential before any expatriation in order to ensure the continuity of the contract and avoid any unpleasant surprises.

Getting a professional support

The complexity of tax rules and the differences between jurisdictions make it essential to have recourse to specialists. Luxembourg insurers, with their multi-jurisdictional expertise, support policyholders in their mobility project. Their understanding of the different markets and of local regulatory frameworks allows them to adapt the contract or to propose a new solution more in line with the policyholder’s new circumstances.

At Baloise Vie Luxembourg, this support goes beyond simple technical adjustments. It includes an analysis of the types of assets permitted in the host country and of tax treaties and a review of the conditions of a surrender or a transfer of the policy. Every aspect, such as the place of residence of the parties to the contract or its structural features, is taken into account to ensure a smooth and optimal transition.

Anticipating your retirement abroad

Many people are considering spending their retirement abroad, attracted by a milder climate, a different living environment or simply to be closer to their family. In this case also, Luxembourg life insurance is particularly advantageous. It makes it possible to optimise the management of retirement savings while respecting the tax specificities of the subscriber’s new country of residence.

With a careful due diligence, it is possible to anticipate the effects of such a change of residence and adapt the wealth strategy to maximize the efficiency of the contract while complying with the new requirements that apply to it.

While the portability of a life-insurance policy is therefore a feasible operation well-mastered by Luxembourg insurance players, it remains delicate and does not allow for a less than exact approach. There is no room for improvisation here. On the contrary, it is essential to prepare it carefully to avoid any future legal and fiscal headache.

Indeed, if well prepared, the portability can become an asset of your wealth planification.

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