Jonathan Benharrous is Director of External Network Development at INTENCIAL Patrimoine. INTENCIAL Patrimoine distributes through its entities life insurance contracts under French law and under Luxembourg supervision, as well as individual retirement contracts and a banking offer.
Within INTENCIAL Patrimoine, you offer life insurance under French law and life insurance under French law under Luxembourg supervision. Do these two offers not compete?
No, these two offers should be seen as an opportunity for additional diversification offering additional advantages and meeting the specific needs of savers. One cannot replace the other. Where French life insurance is generally considered as a system of transmission and tax optimization, a contract under Luxembourg supervision will bring greater financial security.
Where does this enhanced financial security come from?
Contracts under Luxembourg supervision allow investors to benefit from greater protection of invested capital.
First, the concept of great privilegei.e. the guarantee of first-ranking creditor status for the insured in the event of bankruptcy of the insurer (compared to the sixth rank in the case of French life insurance editor’s note). In addition, the ceiling of the security deposit is not subject to any limit, unlike the classic French contract limited to €70,000 per subscriber. Another major advantage is the non-application of the Sapin 2 law, that is to say the guarantee for the savers to keep access to their assets without the risk of having them frozen. Finally, the security triangle accentuates this asset protection.
A safety triangle?
Yes, because asset protection has three dimensions.
Assets representing clients’ assets are deposited with an independent bank approved by the Luxembourg “Commissariat Aux Assurances” which regularly checks the health of the insurance company.
These assets are separated from other liabilities and assets of the insurance company.
And finally, Luxembourg enjoys political and financial stability: it is one of the countries with the highest ratings by the major rating agencies.
Is the taxation applicable to the contract under Luxembourg supervision similar to the contract under French law c?
Yes, whether in terms of redemption or transmission, the taxation is the same as that in force for a classic French life insurance contract.
Which type of saver chooses to take out a contract governed by French law under Luxembourg supervision?
It is difficult to distinguish a precise typology. It is mainly Wealth Management advisors who make the difference through their knowledge of this type of solution and the security that characterizes them. This is often a strong argument in responding to their client’s concerns. And unfortunately, this argument remains strong these days.
Which Luxembourg contract to choose and why?
In addition to all the advantages already mentioned, the contracts offered by APICIL Life* (life insurance, capitalization, and deferred PB contract) offer great flexibility to savers by giving them access to a very wide financial offer and regularly enriched, particularly in terms of real estate funds (SCPI, OPCI), to innovative management methods and fully digitized routes.
These advantages in terms of agility, flexibility and diversification are particularly appreciated by our CGP partners.
What advice would you give to savers who are currently worried about the current geopolitical situation.
To support you in your choices, you need the help of a professional expert in these fields and totally independent; disconnected from any organization, in order to advise you as objectively as possible. The Wealth Management Advisor will be the only one able to provide you with the solution best suited to your situation, your risk profile and your wealth objectives by directing you towards the most appropriate organizations and investment vehicles.
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*APICIL Life is the name of the French branch of The OneLife Company SA, a life insurance company under Luxembourg law whose registered office is at 38, Parc d’Activités de Capellen in L-8308 Capellen, Grand Duchy of Luxembourg, registered in the Trade and Companies Register of Luxembourg section B n°34.402, with a share capital of €50,200,525. Branch for France: 51 rue de Londres, Paris 8th, registered in the Paris Trade and Companies Register under number RCS 878 395 169