An overview of the main life insurance and pension savings providers in Luxembourg - protection, investment, and retirement options.
Comparison last updated: August 2026, from the insurers’ public documentation. Our method: we review each insurer’s public offer documents, compare guarantees, options and exclusions, and summarise the differences that actually matter. We are independent and are not an insurer.
Luxembourg life insurance is built around three pillars: protection (death, disability), savings/investment, and retirement (third-pillar pension).
Retirement savings plan premiums are tax-deductible up to €4,500/year (Article 111bis L.I.R.). Luxembourg’s unique “triangle de sécurité” provides enhanced investor protection: assets backing life insurance contracts are segregated and held by an independent custodian bank under CAA supervision.
Since 1 January 2026, the deductible ceiling for pension savings (article 111bis L.I.R.) has risen from €3,200 to €4,500 per year per taxpayer, a 40% increase that changes the maths for every saver. The conditions are unchanged: a contract of at least 10 years, subscription before age 65, payout between 60 and 75, early surrender prohibited except for serious illness or invalidity. At maturity, capital is taxed at half the global rate and a life annuity is 50% tax-exempt.
The four main contracts on the market differ first by their financial engine. easyLIFE Pension (LALUX) offers two regimes: Security, with a guaranteed minimum rate plus profit sharing, and Performance, in investment units with a death floor equal to premiums paid, from €25/month. MySmartPension (AXA) combines a guaranteed base at 1.25% with profit sharing and unit-linked funds under lifecycle management (risk automatically decreases as retirement approaches). Pension Plan (Baloise) focuses on management flexibility, piloted, profiled or free, with access to ETFs and ESG options. horizon (Foyer) is a unit-linked contract whose funds are managed by CapitalatWork, with ESG vehicles and a partial capital-protection option.
The choice usually comes down to one trade-off: the safety of a guaranteed rate (LALUX Security, AXA’s base) versus the potential of investment units (Baloise in free management, Foyer horizon), knowing that all allow flexible payments and that the tax advantage is identical everywhere. For the details of the new ceiling and exit taxation, see our 2026 111bis ceiling guide.
The deduction is not reserved for residents. A cross-border worker treated as a tax resident (article 157ter L.I.R., in principle when at least 90% of total income is taxable in Luxembourg; for Belgian residents, the treaty test is more than 50% of the household’s professional income under the tax treaty) can deduct up to €4,500 per year in their Luxembourg tax return; under joint taxation, each spouse can hold their own contract. One point of caution: taxation of the payout (capital or annuity) follows the rules of your country of residence, have the setup validated by a tax adviser before signing.
Since 1 January 2026, €4,500 per year per taxpayer (versus €3,200 until 2025), regardless of your age. In a jointly taxed couple, each spouse can subscribe their own contract and deduct their own ceiling.
No, that is the counterpart of the tax advantage. Early surrender is only allowed in case of serious illness or invalidity. The contract must run at least 10 years and the payout must occur between ages 60 and 75.
Both, or a mix, are possible. For tax purposes, capital is taxed at half the global rate in the year of payment, while a life annuity is 50% exempt. The right choice depends on your tax rate in retirement and your need for liquidity, worth simulating before maturity.
Yes, provided you are treated as a tax resident (article 157ter L.I.R.): in principle at least 90% of your total income taxable in Luxembourg; for Belgian residents, more than 50% of the household’s professional income. You can then deduct up to €4,500/year under article 111bis, plus €672/year per household member under article 111. Taxation of the payout depends on your country of residence: clarify it before subscribing.
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