Residual debt insurance

How to protect your family in your plans.

Do you have a real estate project? Then do not forget the residual debt insurance!

A residual debt insurance covers the redemption of your loan in the event of death or incapacity, and therefore protects your family. Through our partner Lalux, we can offer you the residual debt insurance you need for your real estate plans.

The benefits of a residual debt insurance
Which residual debt insurance should you choose?
The tax benefits in detail
Luxembourgish version

The benefits of a residual debt insurance:

Protecting your family against financial worries in the event of death

  • Partial or total redemption of the outstanding balance of your real estate loan
  • Members of your family are not required to face important expenses
  • Avoids the potential need to sell the real estate

A tax-deductible insurance premium

  • Residual debt insurance premiums are income tax-deductible
  • The deduction level depends on your household composition

Which residual debt insurance scheme should you choose?

There are many schemes, designed to suit a range of personal and financial circumstances, and the premium is calculated case-by-case:

  • Selection of the insured parties
  • Choice of the insured amount
  • Choice of duration
  • Choice of frequency of insurance premium payments
  • Choice to add the "incapacity" option
See our blog article

We strongly recommend taking out a residual debt insurance to best protect your family and consequently secure an additional guarantee in your real estate loan process!

Your Housing Advisor will guide you towards the most appropriate solution for your personal situation.

The tax benefits in detail

Whether you opt for a single premium payment or payment in instalments, the premium you pay will be tax deductible if you submit a tax return in Luxembourg.

  • The deductible amount of a single premium payment varies depending on your age and the composition of your household (see table).
  • The annual premiums can be tax-deductible up to EUR 672 per person in your household.
  • A combination of one-off payment and annual premium payments often proves attractive in terms of taxation.
 
no children
1 child
2 children
3 children
per additional child
Up to age 30
EUR 6.000
EUR 7.200
EUR 8.400
EUR 9.600
+ EUR 1.200
Age 31
EUR 6.480
EUR 7.776
EUR 9.072
EUR 10.368
+ EUR 1.296
Age 32
EUR 6.960
EUR 8.352
EUR 9.744
EUR 11.136
+ EUR 1.392
Age 33
EUR 7.440
EUR 8.928
EUR 10.416
EUR 11.904
+ EUR 1.488
Age 34
EUR 7.920
EUR 9.504
EUR 11.088
EUR 12.672
+ EUR 1.584
Age 35
EUR 8.400
EUR 10.080
EUR 11.760
EUR 13.440
+ EUR 1.680
Age 36
EUR 8.880
EUR 10.656
EUR 12.432
EUR 14.208
+ EUR 1.776
Age 37
EUR 9.360
EUR 11.232
EUR 13.104
EUR 14.976
+ EUR 1.872
Age 38
EUR 9.840
EUR 11.808
EUR 13.776
EUR 15.744
+ EUR 1.968
Age 39
EUR 10.320
EUR 12.384
EUR 14.448
EUR 16.512
+ EUR 2.064
Age 40
EUR 10.800
EUR 12.960
EUR 15.120
EUR 17.280
+ EUR 2.160
Age 41
EUR 11.280
EUR 13.536
EUR 15.792
EUR 18.048
+ EUR 2.256
Age 42
EUR 11.760
EUR 14.112
EUR 16.464
EUR 18.816
+ EUR 2.352
Age 43
EUR 12.240
EUR 14.688
EUR 17.136
EUR 19.584
+ EUR 2.448
Age 44
EUR 12.720
EUR 15.264
EUR 17.808
EUR 20.352
+ EUR 2.544
Age 45
EUR 13.200
EUR 15.840
EUR 18.480
EUR 21.120
+ EUR 2.640
Age 46
EUR 13.680
EUR 16.416
EUR 19.152
EUR 21.888
+ EUR 2.736
Age 47
EUR 14.160
EUR 16.992
EUR 19.824
EUR 22.656
+ EUR 2.832
Age 48
EUR 14.640
EUR 17.568
EUR 20.496
EUR 23.424
+ EUR 2.928
Age 49
EUR 15.120
EUR 18.144
EUR 21.168
EUR 24.192
+ EUR 3.024
Over 50
EUR 15.600
EUR 18.720
EUR 21.840
EUR 24.960
+ EUR 3.120

Useful links about tax deductions

Circulaire du directeur des contributions - Dépenses spéciales : primes et cotisations d'assurances

Key-takeaways!

Remember to protect your family against financial worries in the event of death

There are many life-insurance schemes; the decision will depend on your personal situation

The younger you are, the less this insurance costs

Remember, it is tax deductible

For a residual debt insurance appropriate to your personal circumstances, contact your advisor!

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