Posted on 31 July 2023
Single Premium or Annual Premium for Life Insurance? What's the Best Choice?
🏠💰💡 Home loan and outstanding balance insurance: which option should you choose? 🤔🔄
This insurance covers the risks of death and disability, protecting your loved ones from potential debts. 💼👨👩👦 Banks often ask for it for home loans, but did you know it also offers tax benefits? 📝💸
💡 How do you deduct insurance premiums? Which type of premium is most advantageous?
✅ Annual/monthly premium: You can deduct premiums of up to €672/year/person, including all insurance and interest charges. 📉🔒 But if you have other deductions (e.g. health or car insurance) or interest on a personal loan, this ceiling can quickly be reached.
✅ Single premium: opt for a one-off payment and increase the deduction limit for special expenses. 📈🔒
The ceiling is increased as follows:
The ceiling is increased as follows:
- €6,000 + €1,200 per child in the household.
- 8% for each year after the policyholder's 30th birthday.
💡 Tip: Single premium insurance is deductible every 5 years, ideal for covering your home loan over the long term! 🏡🔒
📝 Simplify your tax return with taxx.lu! 💻💼
#AssuranceSoldeRestantDû #DéductionFiscale #PrêtImmobilier #Luxembourg
#AssuranceSoldeRestantDû #DéductionFiscale #PrêtImmobilier #Luxembourg
