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Unit Linked in Luxembourg: the investment insurance for large estates
The Luxembourg Unit Linked is one of the most widely used tools in international wealth planning. It combines the legal protection of a life insurance policy with the flexibility of a tailor-made investment portfolio. This page is for information only and does not constitute tax or insurance advice: always consult a professional before taking out a policy.
What a Unit Linked is
A Unit Linked is a life insurance policy whose value is linked to the performance of a basket of assets (funds, bonds, equities) selected according to the policyholder's profile. The policyholder does not own the assets directly, but holds a policy whose value reflects that portfolio.
Luxembourg is the reference centre for these contracts thanks to its regulatory strength and the protection it offers the policyholder.
The triangle of security
Luxembourg's great advantage is the triangle of security: the assets underlying the policy are deposited with a separate custodian bank, segregated from the insurer's balance sheet and supervised by the Commissariat aux Assurances. If the insurer runs into difficulty, the policyholder benefits from a preferential claim over those assets.
Advantages in wealth planning
- Enhanced protection of the policyholder's wealth.
- Flexibility to design the underlying portfolio and adjust it over time.
- Portability if you change your country of residence.
- Designation of beneficiaries for estate planning.
- Potential tax deferral, depending on the applicable rules.
Who it makes sense for
The Unit Linked suits profiles who want to organise their succession, give their wealth international mobility or add an extra layer of protection. We always assess it in light of your personal tax situation.
Frequently asked questions
What is a Unit Linked in Luxembourg?
It is a life insurance policy whose investment is linked to a portfolio of assets chosen according to the policyholder's profile. It combines the legal wrapper of insurance with the flexibility of an investment portfolio.
What is the Luxembourg triangle of security?
It is the protection regime under which the policyholder's assets are segregated from the insurer's balance sheet and deposited with a supervised custodian bank. If the insurer becomes insolvent, the policyholder holds a preferential claim.
What is a Unit Linked used for?
For wealth and estate planning, international diversification, portability between countries of residence and tax deferral according to the rules of each jurisdiction. Its treatment depends on your country of tax residence.
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Book a no-obligation call and we will look together at whether investing in Luxembourg fits your wealth.
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