In recent years life insurance contracts under Liechtenstein law have become an interesting alternative to traditional vehicles for asset protection and estate planning like foundations or trusts. Such life insurance contracts offer several advantages.
The policy holder is largely free to select the assets to cover the policy.
At the same time, he or she benefits from customized estate planning in combination with asset protection in the case of bankruptcy or enforcement proceedings. The contract may be terminated at any time; even a partial surrender in order to withdraw cash is possible. The flexibility and tax advantages of life insurance contracts allow for tailor-made solutions that satisfy policy holders’ various needs.
The success of the Liechtenstein life insurance is based to a significant extent on the framework conditions known widely as the princely privileges that are offered by Liechtenstein