Luxembourg law has established a strict system to protect invested capital. It helps make Luxembourg life insurance a secure means of financial investment. The matching contribution in the contract can be made by a single initial payment when taking out the policy and also by additional payments thereafter. Contribution in securities is also possible (listed or unlisted securities). This advantage is specific to the Luxembourg law policy and very popular with the policyholders. It is a “tailor-made” policy with features that can be adapted according to the policyholder’s country of origin or their host country if they are an expatriate. The duration of the policy is most often unlimited, meaning a lifetime.
However, a fixed term may be mentioned in the policy. The currency is your choice. It is possible to take out a policy in a foreign currency, the one that will be used for purchases, transfers, and transmissions to beneficiaries. It is a great advantage for expatriates who do not want to be exposed to currency risk. The most represented currencies are the euro, dollar, Swiss franc, and British pound.