Posted on 31 July 2023
Single Premium or Annual Premium for Life Insurance? What's the Best Choice?
๐ ๐ฐ๐ก Home loan and outstanding balance insurance: which option should you choose? ๐ค๐
This insurance covers the risks of death and disability, protecting your loved ones from potential debts. ๐ผ๐จโ๐ฉโ๐ฆ Banks often ask for it for home loans, but did you know it also offers tax benefits? ๐๐ธ
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๐ก How do you deduct insurance premiums? Which type of premium is most advantageous?
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Annual/monthly premium: You can deduct premiums of up to โฌ672/year/person, including all insurance and interest charges. ๐๐ But if you have other deductions (e.g. health or car insurance) or interest on a personal loan, this ceiling can quickly be reached.
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Single premium: opt for a one-off payment and increase the deduction limit for special expenses. ๐๐ย
The ceiling is increased as follows:
- ย โฌ6,000 + โฌ1,200 per child in the household.
- ย 8% for each year after the policyholder's 30th birthday.
๐ก Tip: Single premium insurance is deductible every 5 years, ideal for covering your home loan over the long term! ๐ก๐
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๐ Simplify your tax return with taxx.lu! ๐ป๐ผ
ย #AssuranceSoldeRestantDรป #DรฉductionFiscale #PrรชtImmobilier #Luxembourg
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