Bâloise Vie Luxembourg
What is Bâloise Vie Luxembourg S.A?
The Bâloise Group has provided insurance services in the Grand Duchy of Luxembourg since 1890 and is deeply rooted in the economic and social fabric of the country. Quality, transparency, respect and honesty are the values that guide its approach and enable the development of stable partnerships, based on trust.
Since the introduction of the Third Life Insurance Directive which defines and describes the Freedom to Provide Services (FPS) regime for insurance within the European Union, Bâloise Vie Luxembourg SA, as a Luxembourg sited and regulated life insurance company, has specialised in selling Life Insurance Contracts across the European Union since 1996. Find out more.
Does the Bâloise Group have a subsidiary or branch in another country than Luxembourg?
The Bâloise Group does not have a subsidiary or a branch in another country than Luxembourg but Baloise Vie Luxembourg S.A., as an EU based entity, is authorised to carry out its activities there under the Free Provision of Services regime of the EU. The Bâloise Group has operations in Switzerland (parent company), Germany, Belgium and Liechtenstein.
Life insurance policy
What is the role of the subscriber?
The subscriber can be natural or legal persons (depending on legislation). The subscriber undertakes to pay the policy premium(s) and designates the insured party/parties. The subscriber may also be the insured party.
What is the role of the insured party?
The insured party is the person on whose life the policy is written and whose death triggers the payment of the death benefit. Where more than one life is insured the insured event (termination of contract) can be on the first or last death.
Is there a minimum age for the insured party?
Each life insured must have reached the minimum age as legally required by the law chosen at the moment of subscription. The life insured is either the policyholder and/or one or several other persons
What is the role of the beneficiary/beneficiaries?
The payment of the death benefit is to be made to the policyholder(s) or policyholder’s personal representatives, or an assignee if notice of assignment has been given to and accepted by Bâloise Vie Luxembourg S:A: or to the trustees if a trust has been created.
Can a minor be a subscriber to a life insurance policy?
Each subscriber must have reached the minimum age as legally required by the law of the country of residence at the moment of subscription.
When does the insurance policy end?
The policy is written on a whole-of-life basis meaning it continues until the insured event occurs. The policy ends when the death benefit is paid on the insured event, or it is surrendered at a time of the policy owners choosing.
Which tax system applies to my life insurance policy?
The tax system applicable to the policy will be that of the place of residence of the policy owner(s) when a taxable event occurs, or the place of residence of a beneficiary if a death benefit is paid to them.
Please see the tax sheets of your country of residence for more information.
Information about your contract
What information will I receive about my policy?
At the beginning of each calendar year, , you will receive, free of charge, a valuation statement featuring relevant information including the following:
- the surrender value of your policy;
- any surrenders from your policy;
- premiums paid over the previous year;
- the overall percentage performance of the policy, the names of investment funds linked to your policy, their unit value, and their investment performance over the period in question.
We can provide this information to you at any time upon request. An administrative fee of 25 euros will be levied for this service. The fee will be levied by cancellation of units proportionally across the funds that you have chosen.
Where can I register a complaint?
Investments underlying my policy
What is an external fund?
An external fund is a fund which may be an equity fund (focusing on particular sector and/or geographical region), fixed income bond fund, money market fund, mixed fund, fund of funds, fund of alternative funds, or other specialist fund, offered by a 3rd party fund manager.
How is an external fund evaluated and what are the costs?
The Net Asset Value (NAV) is calculated by the external fund manager. The specific costs associated with each external fund are found in the prospectus and Key Information Document supplied for each external fund.
What is a CIF?
An internal collective investment fund offered by Bâloise and limited to the set of assets attributed to it by Bâloise, with or without a guaranteed return and open to other policyholders of the Insurance Company. Units of internal funds such as a CIF can only be purchased by subscribing to an insurance policy issued by the company.
How is a CIF evaluated and what are the costs?
The price of fund units (Net Asset Value) is calculated once per week.
The costs associated with a CIF are the fees for financial management, the fees for administration, custody bank fees and marketing costs. These fees are specified in the Key Information Document for each CIF.
What is a Targeted Investment Strategy?
A Targeted Investment Strategy is an internal fund with its own segregated account, limited to a set of assets determined by the insurer, with or without a guaranteed return, and, in principle, dedicated to a single policy. The assets of a Targeted Investment Strategy are deposited with a custodian bank and the management is delegated, under a discretionary mandate, to a specialist fund manager.
How is a Targeted Investment Strategy evaluated and what are the costs?
The value of a Targeted Investment Strategy depends directly upon the value of those assets held on the segregated account. The total value will include the value of the underlying assets enhanced by uninvested cash, accrued interest not yet due, and reduced by expenses, taxes and other charges associated with day-to-day management of the account.
The costs associated with a Targeted Investment Strategy are detailed in its KID. Those costs include the management fees, custody charges and any transaction fees applied by the custodian bank or by the Asset Manager appointed.
What is the triangle of security?
The triangle of security is the colloquial name for the mechanism of investor protection, operated by the Commissariat aux Assurance, for policyholders of Luxembourg regulated insurers. The Triangle of Security ensures the legal and physical separation between policyholder assets, on the one hand, and the assets of shareholders and other creditors of an insurance company, on the other.
What is PRIIPS?
PRIIPs (Packaged Retail Insurance and Investment Products) is a European Regulation which, from 31st December 2017, regulates the provision of Key Information Documents (KIDs). The regulations are aimed at improving the transparency of financial products and the ease of their comparison with other products by a retail investor.
The products particularly affected by this regulation are as follows: UCITS (open-ended collective investment schemes), unit-linked insurance policies, alternative funds, convertible bonds, securitisation products, deposits and structured deposits.
To improve understanding of these products, rules have been introduced in relation to the provision of a basic key information document provided to subscribers: the PRIIP KID:
- The key information document must comprise a maximum of 3 A4 pages for each product and present, in a clear, succinct and comprehensive manner, the key information for the investment product for the prospective investor;
- The KID must be sent to the subscriber before purchase and commitment;
Therefore, promoters of these investment products (including, from now on, unit-linked life insurance policies) will be subject to the same obligations as issuers of open-ended collective investment schemes in terms of the information provided to subscribers via the KID.
What is IDD 2?
The European Directive on insurance distribution, passed in 2015, is part of a process initiated in the 1990s focused upon harmonising the insurance market across the EU.
What is Solvency II?
Solvency II is a European Directive which entered into force on 1st January 2016, the objective of which is to harmonise and support the European insurance market in guaranteeing the solvency of insurers, i.e. their capacity to fulfil their commitments to insured parties.
These prudential regulations frame operational risk and requirements in terms of insurance companies’ own funds. They will also entail increased regulatory powers over insurance companies.
Under Solvency II, Bâloise Luxembourg has a ratio of 206.4%.
What is FATCA?
The Foreign Account Tax Compliance Act is legislation of the USA. It was adopted on 18th March 2010 and entered into force on 1st January 2013. It imposes the disclosure of information on American account holders to the IRS (USA Internal Revenue Service). In brief, it demands that financial institutions and other non-American entities are obliged to disclose information about their American account holders to the agency, Internal Revenue Service (IRS), with a risk of tax withholding of 30% for those who fail to do so.
What are subscriber obligations in the context of FATCA?
Each subscriber being a natural person is obliged to complete a form identifying their tax residence and American status for the purposes of automatic information exchange under FATCA - “Tax Identification Form” and to do so to enable the Company to determine whether a subscriber should be considered as an American tax resident. Further, during the life of the policy, the subscriber must immediately inform the Company of any change of tax residence. In this case, he or she is required to complete a new tax identification form which will be provided by the company.
What is the CRS - Common Reporting Standard?
The standard for the automatic exchange of information developed by the OECD/the G20 was adopted on 20 October 2014 by all the OECD and G20 countries for tax purposes. It provides for the automatic exchange of all necessary client financial information (natural and legal persons) where the client resides in a country foreign to the service provider. Information is reported on an annual basis. Most jurisdictions undertook to implement this standard via reciprocal exchanges with all the reportable jurisdictions. In 2017, within the framework of the Common Reporting Standard, Luxembourg commenced reporting to the tax authorities of the reportable countries.
What are the obligations for subscribers under CRS?
Each subscriber and beneficiary (upon payment of a benefit) is required to complete a Tax Residence and US Status Form for the Automatic Exchange of Information and FATCA - "Tax Identification Form "to certify his or her tax residence.
With regards life assurance; during the life of the contract, the policyholder must immediately notify the insurance company of any change in tax residence. In this case, they will have to fill in a new tax identification form provided by the company.
On what date has the first reporting been carried out in Luxembourg?
The first reporting has been carried out on 30th June 2017 by banking establishments and insurance companies to the Luxembourg tax authorities which will forward the data in September 2017 to the concerned domestic revenues of the relevant jurisdictions. The reporting must be carried out annually at the same deadline.
What type of contracts are included within the CRS reporting?
Life assurance and capitalisation contracts are included within the reporting process.
To which contracts has this first reporting be applied?
This first reporting concerned all new subscriptions during the year 2016 as well as the existing book of contracts of value more than one million dollars (USD) concluded by natural persons on 31 December 2015. In 2018, the reporting of the 30th June will also concern the residual book of contracts (private persons and legal entities, regardless of the amount involved) to cover all contracts.
What data will be transmitted in the context of the CRS reporting?
All personal and financial data of the relevant contracts in scope. That is to say the data allowing the identification of the person: forename, surname, address, date and country of birth, person in charge, TIN – tax identification number, tax residence as well as the financial data of the contract (being the value of the contract as at 31st December of the relevant year and reporting the gross outgoing payments made (surrenders, payments to beneficiaries, payments of taxes, …)).
Why has a letter been sent in June 2017, to alert all concerned about the country of tax residence selected?
With regard to data protection, prior to sending clients' personal data to a 3rd party, it has been decided to alert all affected persons about the exchange of personal data to the domestic authorities of the registered state of tax residence: The latter has been determined on the basis of a self-certification provided by the policyholder themselves or on the basis of indicators of residence from existing information.
If the country mentioned in this letter is not correct, what must be done?
Upon receipt of this correspondence, any comments or errors regarding the stated country of tax residence, must be qualified and a claim of another tax residence supported by acceptable documentation. Bâloise always reserves the right to identify the appropriate tax residence having regard to the information and documents in its possession.