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Posted on 31 July 2023

Single Premium or Annual Premium for Life Insurance? What's the Best Choice?

πŸ πŸ’°πŸ’‘ Home loan and outstanding balance insurance: which option should you choose? πŸ€”πŸ”„
This insurance covers the risks of death and disability, protecting your loved ones from potential debts. πŸ’ΌπŸ‘¨β€πŸ‘©β€πŸ‘¦ Banks often ask for it for home loans, but did you know it also offers tax benefits? πŸ“πŸ’Έ
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πŸ’‘ How do you deduct insurance premiums? Which type of premium is most advantageous?
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βœ… Annual/monthly premium: You can deduct premiums of up to €672/year/person, including all insurance and interest charges. πŸ“‰πŸ”’ But if you have other deductions (e.g. health or car insurance) or interest on a personal loan, this ceiling can quickly be reached.
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βœ… Single premium: opt for a one-off payment and increase the deduction limit for special expenses. πŸ“ˆπŸ”’Β 

The ceiling is increased as follows:
  •  €6,000 + €1,200 per child in the household.
  • Β 8% for each year after the policyholder's 30th birthday.

πŸ’‘ Tip: Single premium insurance is deductible every 5 years, ideal for covering your home loan over the long term! πŸ‘πŸ”’
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πŸ“ Simplify your tax return with taxx.lu! πŸ’»πŸ’Ό

Β #AssuranceSoldeRestantDΓ» #DΓ©ductionFiscale #PrΓͺtImmobilier #Luxembourg
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