Savings for your children and grandchildren:
- tax-deductible premiums
- a capital in all circumstances (death and disability).
- controlled savings
Taking out a life insurance policy for your children means providing them with a secure financial future and opening the door to many opportunities right from the start of their life.
More attractive than a traditional savings account, Kid’s Plan life insurance enables you to start saving as soon as your children or grandchildren are born, and to support them from the age of 18 until they are 25.
Whether it’s to finance their studies or a project, Kid’s Plan life insurance is the promise of a secure future for your children, while offering a practical and secure solution.
The capital will eventually be paid to your children or grandchildren, even in the event of death or invalidity of the policyholders.
As the policyholder, you remain the owner and holder of your savings, even after the termination of the contract.
From 672 EUR tax deduction depending on your marital status*.
Thanks to the legal framework for life insurance in Luxembourg, you can benefit from tax relief while building up capital for your children.
Kid’s Plan, the savings and social security contract
You can deduct from EUR 672* per year on your tax return, depending on your marital status.
Premiums can be paid by:
- single premium;
- periodic premium (monthly or annual) - direct debits can be suspended at any time..
You can also make unrestricted payments at any time.
You can take out additional cover in the event of death or disability.
As of the child’s 18th birthday and from the 10th year of the contract, it is possible to make a surrender of a minimum amount of EUR 750, as long as savings of EUR 2,500 are available.
The term of the contract is a minimum of 10 years. Tax benefits are lost if the contract is terminated before this term.
At the end of the contract, the accumulated capital is paid out as a lump sum.
The capital and surrender value are tax-free.
The benefit received by the beneficiary in the event of death may be subject to inheritance tax.
The Kid’s Plan savings life insurance policy is available to:
- Luxembourg residents;
- non-resident frontier workers, for those who file a tax return in the Grand Duchy of Luxembourg.
The policyholder can choose between several types of investment funds depending on his or her profile and objectives:
- guaranteed rate;
- investment funds *;
- sustainable investment fund *.
* The return is linked to the performance of the chosen investment fund. No guarantee of return is provided by Baloise Vie Luxembourg. The financial risk is borne entirely by the policyholder.
* Tax deductions
Under article 111 of the Luxembourg Income Law, the premium is deductible from taxable income up to certain limits. For example, for a taxpayer without a spouse, the maximum deductible is EUR 672, while for a taxpayer with a spouse and two children, the maximum deductible is EUR 2,688.
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Life insurance allows you to keep control of your savings. Your child will obtain the capital whenever you wish.
What’s more, the Kid’s Plan will provide your child with a lump sum payment in all circumstances (death and disability) from the age of 18.
There is no limit to the number of contracts per child.
However, tax deductions* are limited for each taxpayer.
Anyone can take out a life insurance policy for a child. You can be a parent, grandparent or relative.
The sooner the better. The earlier you take out your policy, the more time you will have to save. If you start at birth, the savings will grow with your child. It also allows you to save smoothly.
You can choose to pay regular premiums of between EUR 50/month and EUR 500/year, or a single premium of EUR 2,500.
| KID | Product name | SFDR Category |
|---|---|---|
| KID | Kids Plan - Periodic premium | Article 8* |
| KID | Kids Plan - One-time premium | Article 8* |
| KID | Kids Plan - Guaranteed premium | Article 6 |
* Multi-option product with one or more investment options that qualify the product as a financial product promoting environmental or social features in the sense of Article 8 of the SFDR.
The product can only qualify as a financial product in the sense of Article 8, if (i) it invests in at least one investment option qualified as Article 8 or Article 9, and (ii) at least one of these investment options is retained during the holding period of the insurance product.
| Name | |||
|---|---|---|---|
| BFI Activ (EUR) | Factsheet | KID | Article 8 SFDR |
| BFI Systematic Balanced (EUR) | Factsheet | KID | Article 6 SFDR |
| BFI Systematic Conservative (EUR) | Factsheet | KID | Article 6 SFDR |
| BIF Eticx Conservative | Factsheet | KID | Article 8 SFDR |
| BIF Eticx Defensive | Factsheet | KID | Article 8 SFDR |
| BIF Eticx Balanced | Factsheet | KID | Article 8 SFDR |
| BIF Eticx Dynamic | Factsheet | KID | Article 8 SFDR |
| BIF Eticx Aggressive | Factsheet | KID | Article 8 SFDR |