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Luxembourg life insurance
Luxembourg life insurance is used by international investors, expatriates and French tax residents. Insurers are supervised by the Commissariat aux Assurances, Luxembourg’s insurance regulator. Investment options and management terms depend on the policy.
The insurer may appoint Necker Finance to manage the policy’s dedicated fund. Necker Finance provides this service from Mauritius, with specialised partners.
Who it is for
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Expatriates
You live abroad or are preparing to move. Whether you can keep the policy depends on your destination and the insurer’s conditions.
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International investors
You hold assets in several countries. The policy can bring some of your investments together.
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French tax residents
French life insurance tax rules apply. Luxembourg’s protection rules apply to the assets backing the policy.
The policy is taken out with the insurer, directly or through an insurance intermediary authorised in your country of residence. Necker Finance is neither an insurer nor an insurance intermediary. It does not offer insurance policies or accept applications.
Protection, mobility, investments and tax
Protection if the insurer fails
A custodian bank approved by Luxembourg’s insurance regulator, the Commissariat aux Assurances, holds the assets backing the policies. These assets are kept separate from the insurer’s own assets. The regulator approves the deposit agreement between the insurer and the bank.
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It receives an asset inventory every quarter and can freeze the assets. These arrangements are known as the “triangle of security”. If the insurer fails, policyholders have priority for payment from these assets. Payments are limited to the assets’ value. This priority is known as the “super-privilege”. It does not protect against market losses.
Two estates kept apart
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Moving to another country
Luxembourg does not tax non-resident policyholders, which is known as the policy’s tax neutrality. The policy’s tax treatment depends, among other factors, on their tax residence.
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Before moving, ask the insurer whether you can keep the policy; changes to it may be necessary. This possibility, known as portability, depends on the new country’s rules and the insurer’s conditions. On those conditions, a Luxembourg policy taken out while living in France can be kept after a move to Mauritius.
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Managing the investments
Investment options depend on the policy: external funds, an internal collective fund (FIC) shared by several policies, or a dedicated internal fund (FID) reserved for one policy. In a specialised insurance fund (FAS), the policyholder selects each investment directly.
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The insurer appoints the dedicated fund’s investment manager; the agreement sets out the objectives, risk level, investment period and currency. The insurer remains the owner of the assets and responsible for their management. It may appoint Necker Finance to this role.
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Tax and payments on death
The policy’s tax treatment depends on the policyholder’s tax residence and, for payments on death, on the beneficiaries’ circumstances. For a French tax resident, French life insurance tax rules apply to withdrawals and to payments on death.
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The policyholder must declare the policy each year. Your lawyer, notary or tax adviser assesses these matters for your circumstances; plans to pass on wealth are prepared with them.
What Necker Finance does
The insurer may appoint Necker Finance to manage a dedicated internal fund. Necker Finance works with specialised partners, within the authorisations required for its investment management activities. Our management rests on three principles.
- Spreading the investments. We spread the portfolio across several types of investment, according to the agreed objectives and risk level.
- Open architecture. We select funds and managers from different asset managers, within the insurer’s rules, tied neither to a bank nor to a product range.
- Regular monitoring. We monitor the portfolio and its risks regularly. We report at the agreed frequency.
Who does what
Risks, fees and conditions
A dedicated fund is intended for long-term investment.
- Value of the policy
- It depends on the fund’s investments and can fall. In a dedicated fund the capital is not guaranteed: the policyholder bears the market risk. If the fund is denominated in a currency other than yours, its value also moves with the exchange rate.
- Protection
- If the insurer fails, policyholders have priority for payment from the policy’s assets, up to their value. These rules do not protect against market losses.
- Fees
- The documents provided before you take out the policy set out the insurance, custody, investment management and fund fees.
- Investment period
- The policy is intended for long-term investment. Withdrawals are subject to its terms.
- Eligibility requirements
- Under Luxembourg’s 2026 rules, a dedicated fund requires an investment of at least €125,000, and the policyholder must declare financial wealth of at least €250,000. Insurers often require a minimum investment of €250,000.
- Tax
- Tax treatment depends partly on your tax residence. For payments on death, the beneficiaries’ circumstances also matter. Ask your tax adviser to review your position before deciding.
Your questions
Can I take out a Luxembourg policy while living in Mauritius?
Some Luxembourg insurers accept residents of Mauritius. Check your eligibility with the insurer or an authorised insurance intermediary.
What happens to my policy if I move country?
Before moving, ask the insurer whether you can keep the policy; changes to it may be necessary. Moving can change the policy’s tax treatment: your tax adviser should assess your full circumstances.
Can I transfer my French life insurance policy to Luxembourg?
No. You cannot transfer a French policy to another insurer. You would need to cash it in, which may trigger tax, and take out a new policy, which would not retain the original policy’s age for tax purposes. Your French policy can also be kept. Our guide on bank accounts and investments explains what changes for a non-resident.
Who holds the policy’s assets?
The insurer owns the assets. A custodian bank holds them separately from the insurer’s own assets. You have a claim against the insurer corresponding to the policy’s value. Necker Finance never holds those assets; it can manage the dedicated fund if appointed by the insurer.
How is Necker Finance paid?
Through management fees on the dedicated fund, agreed with the insurer and stated in the policy documents. Any remuneration from third parties would be disclosed before the mandate begins.
How is a French tax resident taxed?
French life insurance tax rules apply. Tax on withdrawn gains depends partly on the policy’s age and on when premiums were paid; particular rules apply after eight years. Articles 990 I or 757 B of the French tax code may apply to payments on death, depending on the circumstances. The policy must be declared annually using form 3916-3916 bis; the reporting and payment obligations for withdrawn gains are separate, and the policyholder may authorise an eligible paying institution to handle some of them. Ask your tax adviser which obligations apply to you.
And a resident of Mauritius?
Luxembourg does not tax a non-resident policyholder. Mauritius taxes foreign-source income when it is received in Mauritius; ask your tax adviser how a withdrawal from the policy would be treated. Mauritius has no inheritance tax, but the French rules may apply to sums paid to beneficiaries living in France.
Regulatory information
This page provides general information. It is not an offer to take out a policy or a personal recommendation. Policies are taken out with an insurer, directly or through an authorised insurance intermediary. The features, risks and tax treatment depend on the policy and on your circumstances. The insurer’s contractual documents take precedence over this summary. Information current in October 2026.
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