Saving for my child’s future
You need to plan for your child’s future well before they take their first steps and begin their working life. Building up equity through regular saving will help them when the time comes to go out into the world.
Take out an insurance policy to protect your child
As a parent, you can help your child finance their future plans: studies, first home, trip abroad.
You can take out a life insurance policy until the child reaches the age of 25 and make payments at fixed intervals (monthly, quarterly, half-yearly or annual premiums).
A safe solution
When you take out a life insurance policy, your capital is guaranteed at maturity. In the event of the death of the policy holder, the cover ensures the continuation of the policy until it matures. As the insurer, we take care of paying the premiums and ensure that the beneficiary child receives the capital when the policy matures. In the event of invalidity, if you have taken out complementary cover, the payment of your premiums will be taken care of.
A safe, flexible solution
As the policyholder, you manage your savings until the policy matures. When the time comes, you choose the date on which the child can use the funds - by their 30th birthday at the latest.
A cost-effective solution
The return on a life insurance policy is much better than with a savings account. Your premiums are valued at the minimum guaranteed rate applicable when the policy was taken*. You also receive a supplementary payment (profit share), which is dependent upon the Insurance Company’s financial performance.
A life insurance policy as opposed to a children’s saving account
Emilie lives in Luxembourg and knows that Anaïs and Paul will need some capital to finance their studies or furnish their first home. Emilie has taken out two life insurance policies, one in each of her children’s names. This solution is more cost-effective and flexible than a savings account. She will also benefit from tax deductions, as her children are part of her tax household.
When you do your tax return every year, you deduct any premiums paid as “special expenditure” for a life insurance policy for a minimum term of 10 years, provided that the beneficiary is part of your tax household.
* Any increase in premium or flexible contributions will be capitalised at the new rate applicable on the date of investment.