For outstanding balance insurance, you can generally choose between a single premium and a recurring premium. Each option has its own logic.
The single premium
You pay once at inception. Frequent advantages: an often optimised overall cost and, for tax, a deduction ceiling increased according to age (in the year of payment). In return, it requires available cash.
The recurring premium
You spread the payment (monthly, yearly…). Advantage: no major cash effort at the outset. The deduction is then spread over time, within the annual limits.
- Your ability to mobilise capital upfront.
- Age and its effect on the deduction ceiling.
- Other special expenses already deducted the same year.
- The remaining term of the loan.
There is no universal answer: the right choice depends on your budget and your tax situation. We compare the scenarios with you, backed by figures, with no obligation.
General information, subject to legal and contractual conditions and your personal situation; to be confirmed with the ACD (Luxembourg tax authority) or a qualified professional.