Posted on 31 July 2023
Single Premium or Annual Premium for Life Insurance? What's the Best Choice?
Learn about the single or annual premium for outstanding balance insurance. Compare the benefits and make the best choice for your financial security.
Home loan and outstanding balance insurance: which option should you choose?
This insurance covers the risks of death and disability, protecting your loved ones from potential debts. Banks often ask for it for home loans, but did you know it also offers tax benefits?
How do you deduct insurance premiums? Which type of premium is most advantageous?
Annual/monthly premium:
You can deduct premiums of up to €672/year/person, including all insurance and interest charges. But if you have other deductions (e.g. health or car insurance) or interest on a personal loan, this ceiling can quickly be reached.
You can deduct premiums of up to €672/year/person, including all insurance and interest charges. But if you have other deductions (e.g. health or car insurance) or interest on a personal loan, this ceiling can quickly be reached.
Single premium:
Opt for a one-off payment and increase the deduction limit for special expenses. 📈🔒
The deductible limit is increased as follows:
Opt for a one-off payment and increase the deduction limit for special expenses. 📈🔒
The deductible limit is increased as follows:
- €6,000 + €1,200 per child in the household.
- 8% 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!
Simplify your tax return with taxx.lu!
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