Mortgage insurance
Single premium or annual premium: Which one saves you the most tax?
Protect your family!
Outstanding balance insurance covers a debt against the risk of death or disability.
The insurance company guarantees to reimburse the remaining debt (full or partial) of the loan in the event of the borrower's death or disability, so that the family does not have to assume this debt in the event of tragedy.
Benefit from Tax Deduction
Deduct outstanding balance insurance and save on taxes!
The deductible amount depends on the type of premium payment, your age and household composition.
Single Premium or Annual Premium?
You have the choice!
2 options: Annual premium: You can deduct premiums up to €672/year/person, including all insurance and interests on personal loans. Single premium: Opt for a one-off payment and increase the deduction limit for special expenses.
Outstanding Balance Insurance
Calculate your tax deduction for your mortgage insurance.
Our simulator helps you choose the ideal insurance premium to protect your family and your assets.
Some deduction examples
Single at 45 years old
Single Premium:
13 200€
Annual Premium:
672€
Couple without children, ages 35 and 38
Single Premium:
18.240€
Annual Premium:
1.344
Couple, ages 35 and 38, with one child
Single Premium:
19.920€
Annual Premium:
2.016€
Couple, ages 40 and 45, with two children
Single Premium:
29.280€
Annual Premium:
2.688€
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What is an outstanding balance insurance ?
This insurance protects against the risks of death and disability, shielding your loved ones from potential debts. Banks often require it for home loans, but did you know that it also offers tax advantages?
How do you deduct insurance premiums? What type of premium is most advantageous?
Annual premium: You can deduct premiums up to €672/year/person, including all insurance and interests on personal loans. However, if you have other deductions (e.g. health or car insurance) or interest on a personal loan, this ceiling can be quickly reached.
Single premium: Opt for a lump-sum payment and increase the deduction limit for special expenses.
The ceiling is increased as follows:
- 6.000€ + 1.200€ per child in the household
- 8% extra 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!
Articles & tips
Find answers to all your questions about taxation in Luxembourg!
