Mortgage Loan Insurance Plans at Foyer Assurances S.A. – Full Details You Should Know
Buying a home is one of the biggest financial decisions most of us make, and along with it often comes a mortgage that stretches over 15 to 30 years. While we focus on interest rates and EMI amounts, there's one thing many people forget to plan for—what happens if something unexpected happens during the loan period?
That’s where loan protection insurance, or what Foyer calls “Outstanding Balance Life Insurance”, comes in. It’s designed to cover your mortgage in the event of death or disability—so your family won’t be burdened with debt if life takes an unexpected turn.
Foyer Assurances S.A. offers this coverage through a smart and simple plan called Focus.
🔹 Focus – Outstanding Balance Life Insurance (Temporary Decreasing Term Plan)
Foyer’s Focus plan is built specifically to protect home loans and other long-term personal loans. What makes it special is that the coverage decreases over time, just like your outstanding loan balance.
🏡 What It Covers:
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Death of the policyholder during the loan term: The insurer repays the remaining mortgage balance to the bank.
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Optional:
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Disability: If you become permanently disabled and can’t work, Foyer can repay the rest of your loan.
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Critical illness: In some versions, there’s coverage if you’re diagnosed with a major illness like cancer or a stroke.
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This ensures that your family keeps the house—without ever worrying about the unpaid loan.
🔍 Key Features:
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Coverage Decreases Over Time: The insured capital matches your remaining loan balance each year.
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Flexible Terms: You choose the same term as your mortgage—e.g., 15, 20, or 25 years.
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Currency Options: Can be set up in EUR or other currencies depending on your mortgage.
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Can Cover One or Two Borrowers: For joint loans, both partners can be insured (50/50 or 100/100 model).
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Medical Underwriting: Yes. Health declarations or medical tests may be required depending on the insured amount and your age.
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One-Time or Monthly Premiums: You can pay either in one go (single premium) or in periodic instalments.
💰 Tax Benefits (Luxembourg):
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Under Article 111 LIR of Luxembourg’s income tax law, premiums paid for this type of life insurance are tax-deductible.
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The maximum deductible amount depends on your age and family situation.
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Also: If you go with the one-time premium option, you might be able to include it in your notary fees or loan disbursement process—making it more convenient.
👤 Who Should Consider This?
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Anyone taking out a mortgage or housing loan
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Couples buying a property together (especially if only one income supports the loan)
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Families with children who want to secure their home no matter what happens
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Self-employed individuals or freelancers with longer loan terms and no employer-based protection
✅ Summary Table – Foyer Focus Loan Insurance
| Feature | Details |
|---|---|
| Type | Decreasing term life insurance (loan coverage) |
| Designed For | Mortgage or long-term personal loans |
| Coverage | Outstanding loan balance in case of death/disability |
| Optional Riders | Disability, critical illness |
| Premium Options | Monthly / annual / single lump sum |
| Term | Matches loan duration (e.g., 10, 15, 20, 30 years) |
| Tax Benefit | Yes – Article 111 LIR (deductible under income tax) |
| Joint Coverage | Available for both borrowers |
| Medical Requirement | Yes (depends on age & insured amount) |
🧠 Why I Think Focus Is Worth It
Let’s face it—a mortgage is a 20- or 30-year commitment. And while we all hope to be around to see it through, life doesn’t always go as planned. What I like about Foyer’s Focus plan is that it gives you a clear and cost-effective way to protect your family from the burden of repaying a home loan in the event of tragedy.
Plus, the decreasing nature of the policy means you’re not paying for more coverage than you actually need—you only pay for the risk that still exists.
If you’re taking out a mortgage in Luxembourg (or anywhere really), I strongly recommend asking your advisor or banker to include Focus in the loan planning process. It might just be the smartest thing you do for your family’s future.
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