Luxembourg life insurance fees in France
Updated on 5 August 2026
Luxembourg life insurance fees fall into four layers: entry (0% to 5%), wrapper management (0.5% to 1% per year), underlying investment options (1% to 2%) and custodian bank (0.1% to 0.3%). In 2026, the average cost under managed-portfolio service in Luxembourg reaches 0.90% per year, versus 1.35% at French private banks.
- Entry fees, capped between 4.5% and 5% on traditional policies, remain negotiable and are sometimes waived on policies such as Sogelife Personal Multisupports or Lombard International Liberté.
- High-end investment options such as FAS (Fonds d'Assurance Spécialisé, dedicated insurance funds), FID (Fonds Interne Dédié, dedicated internal funds) and FIC (Fonds Interne Collectif, collective internal funds) carry specific fees, generally higher than those of standard mutual funds (OPCVM).
- On €100,000 invested over 10 years, the gap between 1% and 3% in annual fees can exceed €20,000 in lost performance.
- Finary One supports investors with at least €500,000 in investable assets in selecting and negotiating a Luxembourg policy.
What is Luxembourg life insurance?
Luxembourg life insurance combines protection and growth potential for your savings. It stands out for its exceptional flexibility and unique regulatory framework, offering significant advantages compared with French life insurance.
The Luxembourg Security Triangle
At the heart of its appeal is the concept of a "financial vault," embodied by the well-known Luxembourg security triangle. This three-party mechanism involves:
- The insurer
- An authorised custodian bank
- The Commissariat aux Assurances (CAA)
This structure ensures a strict segregation of assets at the custodian, reinforcing the protection of your savings.
The Luxembourg Super-Privilege
The Luxembourg super-privilege is another pillar of security. If the insurer fails, the policyholder holds first-ranking creditor status.
This guarantees priority repayment ahead of the State, suppliers or employees. Unlike the FGAP guarantee, capped at €70,000 for French policies, this protection applies with no pre-set legal cap, within the limits of the ring-fenced assets.
The different types of fees on Luxembourg life insurance
Luxembourg life insurance offers protection and flexibility, but its fee structure is complex. These fees, often higher than those of French policies, are justified by the sophistication of the services and Luxembourg's strict regulatory framework.
Entry and contribution fees
Entry fees are the first financial hurdle for investors. Contrary to popular belief, these fees are not always zero on Luxembourg policies.
They can reach up to 5% of the amount invested, although many policies offer better rates for larger portfolios.
For example:
- Lombard Liberté: 0% entry fees, offset by degressive management fees (see #5)
- Vitis Life: maximum entry fees of 3.5%.
These fees are often negotiable, especially for larger investment amounts.
Annual management fees
Annual management fees are a recurring cost that can significantly affect long-term returns. They generally break down into two categories: fees for euro funds and fees for unit-linked funds.
For euro funds, fees generally range between 0.2% and 1% per year:
- Swiss Life Asset Portfolio: maximum management fees of 0.65% on its euro funds.
- Axa Lifinity Europe: 0.27% in fees.
For unit-linked funds, the range is wider. A few examples:
- Lombard International: degressive management fees, from around 0.77% at €250,000 down to less than 0.37% beyond €10 million.
- Swiss Life Asset Portfolio: up to 2% in annual fees on unit-linked funds.
Switching fees
Switching fees apply when you change how your investments are allocated. Pricing policies vary from insurer to insurer:
- Lombard Liberté: one or two free switches per year, then a 0.5% fee for additional ones.
- Swiss Life Asset Portfolio: a 1% fee on the amount switched, capped between €250 and €500 per transaction.
- Axa Lifinity Europe: one free switch per year, then a 0.5% fee, with a differentiated cap (€300 for switches from euro funds to unit-linked funds, and €1,000 the other way).
Exit and withdrawal fees
Contrary to popular belief, exit fees are not systematically absent from Luxembourg policies. While many modern insurers have removed them, some older policies may still apply them. A few examples:
- Lombard Liberté, Swiss Life Asset Portfolio: 0% exit fees
- Foyer Helios:
- During the first 10 contractual years: 10% of the amount withdrawn.
- This rate then decreases by 0.5% each year
The impact of hidden fees
Beyond the explicit fees, factor in hidden costs, particularly those tied to underlying investment options such as mutual funds (OPCVM) or open-ended investment companies (SICAV). These fees can range from 0.8% to 3%, significantly affecting your investment's real return.
The management fees on display can mask higher total costs. Over 10 years, on €100,000 invested, the difference between 1% and 3% in fees can cost more than €20,000 in performance.
How do Luxembourg life insurance fees compare with a French policy?
Luxembourg policies generally show higher entry and management fees than in France, but give access to broader investment options and greater wealth protection.
Entry fees
Entry fees are the first striking contrast. French online policies often offer 0% entry fees. Luxembourg policies, by contrast, generally apply higher fees. These can reach up to 5% of the amount invested.
- Boursorama Vie in France: zero entry fees.
- Wealins Life in Luxembourg: entry fees of up to 5%.
Annual management fees
Annual management fees on Luxembourg policies are generally higher than on French policies, reaching up to 2% for unit-linked funds.
Annual management fees also show notable gaps. In France, these fees typically range between 0.5% and 1% for euro funds, and can rise to 1.5% for unit-linked funds.
In Luxembourg, the range is higher:
- Fees of up to 1% for euro funds.
- Up to 2% for unit-linked funds, or more for certain more exotic products
Switching fees
Luxembourg policies tend to be more expensive in terms of switching fees. While many French policies offer unlimited free switches, Luxembourg policies generally limit free switches to one or two per year.
- Lombard International: charges 0.5% for each switch beyond the two free annual ones.
Luxembourg life insurance fees at Finary One
Finary One supports investors with €500,000 in investable assets in choosing and structuring their Luxembourg policy according to their wealth profile.
- Informed selection among 10 Luxembourg insurers (Lombard International, Wealins, Sogelife, Cardif Lux Vie, and others), with access to FIDs from €500,000 in assets.
- A dedicated private wealth manager who structures the policy to fit your overall wealth and objectives.
- Negotiating fees and banking margins through the volume Finary One transacts with its Luxembourg partners.
Learn more about Finary One → Reserved for investors with at least €500,000 in investable assets. Investing carries risks, including the risk of capital loss.
Factors affecting fees
Regulatory framework
Luxembourg's regulatory framework, known for its robustness, drives higher compliance costs. The well-known Luxembourg security triangle entails additional management and oversight fees.
Nature of the policies
Luxembourg policies, often more sophisticated and customisable, justify higher fees. The ability to invest across a wide range of assets requires additional expertise and resources from managers.
Target clientele
The high entry ticket for Luxembourg policies (generally a €250,000 minimum versus €500 in France) targets a wealthy clientele. This clientele is willing to pay for high-end services and bespoke wealth management.
Impact on long-term returns
The impact of these fees on long-term returns can be considerable.
A concrete example
Initial investment of €250,000 over 20 years, with a hypothetical 5% gross annual return (illustration, not guaranteed):
- French policy with annual management fees of 0.8%: final capital of around €569,000.
- Luxembourg policy with management fees of 1.5%: final capital of around €497,000.
This difference of more than €71,000 illustrates just how much fees matter over the long term.
You can use our compound interest calculator to simulate the impact of fees on your savings over the long term.
Investment opportunities
That said, this comparison deserves some nuance:
- Luxembourg policies often offer more diversified investment opportunities, whose returns remain subject to market risk.
- The added protection and flexibility justify these extra costs for certain investors. This is particularly relevant in a context of international wealth management.
Degressive fee structure
The degressive fee structure of many Luxembourg policies can reduce the impact for larger portfolios.
For example, a policy with fees of 1.5% up to €2.5 million, 1.2% between €2.5 million and €5 million, and 0.9% beyond that can prove competitive for very large portfolios.
How to optimise the fees on Luxembourg life insurance
Three levers can reduce the fees on Luxembourg life insurance: negotiating entry fees, choosing the right management mode, and selecting low-cost investment options. These policies remain generally more expensive than French ones, but each lever pulled brings the real total cost closer to the French level.
Negotiating entry fees
Negotiating entry fees is a first lever for savings. Contrary to popular belief, these fees are not fixed and can be negotiated, especially for larger investments.
A policy such as Wealins Life lists maximum entry fees of 5%. However, you can reduce them significantly, or even waive them entirely, for larger amounts.
Choosing a management mode
The choice between self-directed management and managed-portfolio service can significantly affect your policy's total fees.
Self-directed management
- Accessibility: available from €125,000 on some policies such as Vitis Life.
- Advantage: lets you choose your own unit-linked funds, potentially lowering management fees.
- Drawback: requires expertise and regular monitoring.
Managed-portfolio service
- Accessibility: generally available from €250,000.
- Advantage: cost-effective over the long term, especially if it helps avoid costly investment mistakes.
- Example: the Lifinity Europe policy from Axa Wealth Europe offers managed-portfolio service with maximum management fees of 1%, competitive given the expertise provided.
Selecting investment options
Sound understanding and diligence when subscribing help you maximise your investment in Luxembourg life insurance while minimising fees.
- Choose low-cost investment options (ETFs generally carry lower fees).
- Diversify across asset types to maximise returns while minimising costs.
How to choose the right Luxembourg life insurance policy?
The choice depends on three main criteria: the minimum investment required, the diversity of investment options on offer, and the financial strength of the insurance company.
Minimum investment amount
The minimum investment amount is a discriminating factor:
- Vitis Life - Wealth Executive Life: minimum initial payment of €50,000.
- Most other policies require €250,000 or more.
Diversity of investment options
The diversity of investment options on offer is crucial. Profolio from Bâloise Vie Luxembourg gives access to more than 6,000 unit-linked funds, allowing for extensive diversification.
Comparison of the leading Luxembourg life insurance policies
Five policies stand out for their features:
- Lombard International - Liberté:
- Degressive management fees (from around 0.77% at €250,000 to less than 0.37% beyond €10 million, see #5).
- Investment flexibility with more than 1,500 unit-linked funds available.
- Wealins SA - Wealins Life:
- Wide range of investments.
- Negotiable entry fees of up to 5% and unit-linked management fees capped at 1.5%.
- Vitis Life - Wealth Executive Life:
- Lowest entry ticket (€50,000).
- Maximum entry fees of 3.5% and unit-linked management fees capped at 1.20%.
- Axa Wealth Europe - Lifinity Europe:
- Favourable switching policy (one free switch per year, then capped fees).
- Bâloise Vie Luxembourg - Profolio:
- Exceptional diversification with more than 6,000 unit-linked funds.
- Unit-linked management fees of up to 1.2%.
To help you choose the best Luxembourg life insurance policy, see our detailed guide.
Financial strength
The choice of insurance company is crucial for the quality of the policy and the financial strength of the institution. You can find all the ratios on the CAA website. Here are a few examples:
- Foyer Vie: 215% in 2024 (versus 249% in 2023).
- BNP Paribas Cardif Lux Vie: 161% in 2024.
A trade-off between protection and cost
Luxembourg life insurance offers unique advantages in protection and flexibility. To optimise its returns, it's important to understand its fee structure and adapt your investment strategy to these sophisticated policies.
Although generally more expensive than their French counterparts, Luxembourg policies can be effective wealth management tools suited to certain experienced investor profiles.
Non-contractual document for promotional purposes. Finary One is Finary's private wealth management offer, reserved for investors with at least €500,000 in investable assets. Investing carries risks, including the risk of partial or total capital loss. Finary SAS - 58 rue de Monceau 75380 Paris 8 - ORIAS no. 21001279, under the supervision of the AMF and the ACPR.
To learn more about Luxembourg life insurance
To go beyond the detailed fee breakdown in this article, see our complete guide: Luxembourg Life Insurance in 2026: Benefits, Drawbacks and How to Choose. This pillar covers how it works in detail, the security triangle, FAS/FID/FIC investment options, taxation, the comparison with French life insurance, and how to choose based on your wealth profile.
Frequently asked questions
Are the fees on Luxembourg life insurance negotiable?
Entry fees are often negotiable, especially for larger amounts: several Luxembourg insurers such as Sogelife or Lombard International even offer policies with no entry fees for larger portfolios. Management fees can also fall through a degressive structure beyond certain asset thresholds.
What is the minimum amount to open a Luxembourg life insurance policy?
The entry ticket varies by insurer, from €50,000 for the most accessible policies to €250,000 or more for most high-end offers. Some dedicated internal funds (FID) require even higher minimums, sometimes above €500,000.
Why are Luxembourg life insurance fees higher than in France?
Luxembourg's stricter regulatory framework (security triangle, super-privilege) drives additional compliance and oversight costs. The policies are also more sophisticated, with access to wealth-oriented investment options (FAS, FID) reserved for a wealthy clientele.
Do hidden fees really exist in a Luxembourg policy?
Yes: beyond the displayed fees, underlying investment options such as OPCVM or SICAV funds charge internal fees of 0.8% to 3% per year. On €100,000 invested over 10 years, the gap between 1% and 3% in fees can exceed €20,000 in lost performance.
Do Luxembourg policies with no entry fees exist?
Yes, several insurers such as Sogelife (Personal Multisupports) or Lombard International (Liberté) offer zero entry fees on their main policies, replaced by degressive annual management fees that decrease as the invested amount grows.
Do you need a minimum level of wealth to access Finary One support for Luxembourg life insurance?
Yes, Finary One is reserved for investors with at least €500,000 in investable assets. A dedicated private wealth manager then helps select and structure the Luxembourg policy best suited to the client's wealth profile.
Sources
Commissariat aux Assurances (CAA): solvency reports for Luxembourg life insurers
Fonds de Garantie des Assurances de Personnes (FGAP): overview and guarantee cap
BNP Paribas Cardif, Cardif Lux Vie 2024 SFCR report: solvency ratio
Milliman, analysis of Luxembourg life insurers' 2024 SFCR reports
AXA Wealth Europe, key information document for the Lifinity Europe euro fund
Hagnéré Patrimoine, 2026 guide to Luxembourg life insurance fees
Prosper Conseil, comparison of the best Luxembourg life insurance policies 2026
Assurance Vie Luxembourg, Swiss Life Premium Lux product sheet
Regulatory disclaimers: Marketing communication. Investing carries a risk of partial or total capital loss. Past performance is not a reliable indicator of future performance. This article is provided for information and educational purposes only; it does not constitute personalised investment advice, a buy or sell recommendation, or tax advice. The capital guarantee on euro funds is provided by the insurer and depends on its financial strength. In a severe systemic crisis, the French "Sapin 2" law allows withdrawals to be temporarily restricted (liquidity), without affecting the guaranteed capital. Unit-linked funds are not guaranteed and carry a risk of capital loss. Before investing, read the Key Information Document (KID) and, where relevant, consult an authorised adviser. Finary SAS, an investment firm authorised by the ACPR (no. 19283), member of AMAFI. Insurance broker registered with ORIAS (no. 21001279), member of the CNCGP (association approved by the AMF). Crypto-Asset Service Provider (CASP) authorised by the AMF under the MiCA regime, references no. A2026-026 and no. N2026-008.
