FAQ - Liechtenstein Life Insurance

How does a Liechtenstein Life Insurance work?

  1. Clients purchase a policy with a foreign insurance company in Liechtenstein
  2. The insurance company opens an account with a custodian bank
  3. The funds are managed in the name of the insurer, according to the agreed strategy
  4. In the event of death, the pay out will be made according to policy holder’s instructions
  5. In the event of bankruptcy, ownership of the policy automatically transfers to the nominated beneficiary (if spouse or descendant) or to irrevocably nominated beneficiary (such as family trust)

Is there a minimum investment required?

Yes, 10,000 EUR

Can I make additional contributions at any time?

Yes, but the minimum is 1,000 EUR

Is there a limit as to how much I can invest?

No, there is no upper limit.

How liquid is my investment?

Upon cancellation of the policy or withdrawal funds are normally received within a few business days of lodging the request (30 days pre-notice). However, the underlying investments within a policy may cause delays (such as if the policy holds a property which will take time to liquidate).

Do I need to go to Liechtenstein or Switzerland to set up my policy?

In most cases, no. MyLifePlan is able to arrange everything for you. However a face to face meeting is required with us. For some investments an initial meeting with the custodian bank will be required to determine appropriate strategies.

Can I borrow against the value of my investment/policy?

In most cases, yes. Only with some very specialized investments this is not possible but such concerns will be discussed at the time of your initial investment.

Can my family trust purchase an annuity policy?

Yes it can.

Can a company purchase an annuity policy?

Yes it can.

Can I make irregular withdrawals should I need access to my investment?

Yes, withdrawals can be made at any time onwards from the 13th month of the life insurance contract. It should be noted that there might be tax implications should a withdrawal be made. In these instances it might be more practical to arrange a loan using the policy as security.

What happens upon my death?

The value of your investment will be paid to the beneficiaries of the policy in accordance with your wishes in a lump sum, regular payments or a mixture of both. All that is required is the presentation of a death certificate.

What happens if I become bankrupt?

You will no longer be the owner of the policy because ownership will automatically revert to your spouse or descendants if they are nominated as beneficiaries or to whomever you have nominated irrevocably (such as your family trust). The value of your policy/investment is not included in your estate for bankruptcy. (There are certain fraudulent conveyance requirements that need to be met before this is possible, which are discussed at the time of purchasing the policy). Please also refer to Asset Protection.

What happens if I move to another country – is my policy affected?

You life insurance policy will remain in force regardless of where you live.

How private is my investment?

Liechtenstein and Swiss laws prohibit the disclosure of policy holder details to any third party.

How soon are my assets protected?

Assuming you were solvent at the time of purchasing the policy and were not deliberately attempting to defraud creditors, full protection will be available after one year.