Life insurance and default of the insurance company

Asset protection – Luxembourg life insurance policy

Operation of the special privilege in the event of default by the insurance company

October 1, 2025

"In the event of default by the insurance company, the super privilege allows the policyholder of a Luxembourg life insurance policy to recover his assets before any other creditor of the company. At the time of liquidation, the policyholder of a unit-linked contract will be able to recover the value of the liquidated assets in proportion to the number of units of account linked to his contract."

The special privilege, following the entry into force of the Luxembourg Law of 10 August 2018 transposing EU Directive 2016/97 of the European Parliament and Council of 20 January 2016 on the distribution of insurance, amending the amended law of 7 December 2015 on the insurance sector: