The contract can comprise various supplementary covers:

• Additional death benefit: the benefit in the event of death may be increased by a death benefit amount equal to a percentage of the total premiums paid on the day of death, or of the total premiums envisaged according to the payment plan established at the time of subscription, or a fixed amount.
• Accident and/or road traffic accident insurance: payment of an amount specified in the policy conditions, in the event of an accident or road traffic accident resulting in death and/or total and permanent disability.
• Hospitalisation insurance: payment of a daily allowance in the event of hospitalisation.
• Invalidity risk insurance: exemption from payment of premiums in proportion to the degree of invalidity and after a waiting period. Payment of a quarterly pension in the event of incapacity for work, in proportion to the degree of disability and after a waiting period.  
• Insurance against certain serious illnesses: payment of an amount specified in the policy conditions in the event of serious illness.

You may deduct from EUR 672 per year on your tax return, depending on your marital status.

Premiums can be paid as:

• single premium;
• periodic premium (monthly or annual) - direct debits may be suspended at any time.

You may also make unrestricted payments at any time.

Partial surrender: partial surrender is not possible during the first 10 years of the policy.

The policyholder may then withdraw a minimum amount of EUR 750, provided that a minimum capital of EUR 2,500 remains in the policy.

Total surrender: total surrender is possible at any time and terminates the agreement. If the surrender is made before the 10 years of the policy, the tax advantage will be lost and the policyholder shall submit a request for rectification to the tax authorities.

The term of the contract is a minimum of 10 years.

The policy terminates early in the event of surrender or the death of the insured.

The Life Plan contract is available to:

• Luxembourg residents;
• non-resident cross-border workers who file a tax return in the Grand Duchy of Luxembourg.

The policyholder may choose between several types of investment funds, depending on their profile and objectives:

• guaranteed rate;
• investment fund *;
• sustainable investment fund *.

* The return is linked to the performance of the chosen investment fund. Baloise Vie Luxembourg gives no guarantee as to return. The policyholder bears the entire financial risk.

Pension planning offers financial protection against unforeseen events that could affect your income. It enables the policyholder and their next of kin to continue to receive an amount in the event of unforeseen circumstances. More specifically, it comes into play in the event of death, disability or incapacity for work, offering additional savings. The sums saved may also be used for future projects, or to supplement income when you retire.

A supplementary pension scheme in Luxembourg allows you to build up additional capital for your retirement.

Retirement in Luxembourg is based on three pillars. The first concerns the statutory pension scheme, managed by the State. The second pillar concerns the occupational pension, generally set up by the employer. Finally, the third pillar concerns individual the pension provision, which may take the form of a life insurance or pension savings agreement. Supplementary pension scheme plans such as the Baloise Pension Plan are covered by Article 111bis [of the Luxemburg Law on Income Tax] and offer significant tax benefits, including an annual tax deduction of EUR 3,200.

A pension savings contract is designed to build up additional savings or to protect loved ones through a range of guarantees.

This type of contract is governed by article 111 of the Luxemburg Law on Income Tax and allows tax deductions from EUR 672 per year.

Therefore, these two types of life insurance contracts are complementary, depending on the reasons for which they are taken out.