Posted on 31 July 2023

Single Premium or Annual Premium for Life Insurance? What's the Best Choice?

๐Ÿ ๐Ÿ’ฐ๐Ÿ’ก Home loan and outstanding balance insurance: which option should you choose? ๐Ÿค”๐Ÿ”„
This insurance covers the risks of death and disability, protecting your loved ones from potential debts. ๐Ÿ’ผ๐Ÿ‘จโ€๐Ÿ‘ฉโ€๐Ÿ‘ฆ Banks often ask for it for home loans, but did you know it also offers tax benefits? ๐Ÿ“๐Ÿ’ธ
๐Ÿ’ก How do you deduct insurance premiums? Which type of premium is most advantageous?
โœ… Annual/monthly premium: You can deduct premiums of up to โ‚ฌ672/year/person, including all insurance and interest charges. ๐Ÿ“‰๐Ÿ”’ But if you have other deductions (e.g. health or car insurance) or interest on a personal loan, this ceiling can quickly be reached.
โœ… Single premium: opt for a one-off payment and increase the deduction limit for special expenses. ๐Ÿ“ˆ๐Ÿ”’ย 

The ceiling is increased as follows:
  • ย โ‚ฌ6,000 + โ‚ฌ1,200 per child in the household.
  • ย 8% for each year after the policyholder's 30th birthday.

๐Ÿ’ก Tip: Single premium insurance is deductible every 5 years, ideal for covering your home loan over the long term! ๐Ÿก๐Ÿ”’
๐Ÿ“ Simplify your tax return with! ๐Ÿ’ป๐Ÿ’ผ

ย #AssuranceSoldeRestantDรป #DรฉductionFiscale #PrรชtImmobilier #Luxembourg


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