Once a contract has been mortgaged, the policyholder can no longer freely manage his investments by changing or abandoning them. He must first seek the authorisation of the creditor (of the bank). If the policyholder does not meet his debt, the creditor has the right to request the surrender of the life insurance or capitalization contract up to the amount of the debt and up to the value of the policy on the date of his application. Article 181. Insurance policy rights may be mortgaged; they can only be mortgaged by the policyholder and not by his spouse or creditors. To qualify for a mortgage, the borrower generally needs investments that are worth more than the down payment. When a borrower promises guarantees and the value of the guarantee decreases, the bank may request additional funds from the borrower to compensate for the loss of value of the asset. The collateral is a mechanism by which the policyholder of the contract pledges his policy in favor of a creditor, z.B of the bank that grants the loan. The insurer is not a party to the agreement. It is only informed of the commitment, but has no obligations in accordance with the terms of the agreement. The deposit obligation is registered by the bank and registered in the policy or contract with the insurer.
If the beneficiary is accepted, any movement related to the policy or contract is subject to its acceptance. The use of mortgaged assets to guarantee a rating has several advantages for the borrower. However, the lender will require a certain nature and quality of investments before considering the resumption of the loan. In addition, the borrower is limited to the measures he can take with mortgaged securities. In bad situations, they lose if the borrower becomes insolvent, the securities mortgaged and the house they buy. Thanks to the security triangle, assets held under a Luxembourg foundation or savings policy are separated from the insurance company`s other assets. Under Article 3 of the tripartite deposit agreement between the insurer, the deposit bank and the insurance commission, neither the bank nor the insurer can accept any other privileges or pledges than a super lien on the underlying assets! > here! Is it possible to mortgage the underlying assets of the policy as collateral or, in the examples above, should people abandon their policies? Excerpt from Article 3 of the model of deposit guarantee agreements established by the Insurance Committee: Articles 116 and 117 of the Luxembourg Insurance Policy Act of 27 July 1997 stipulate that the right to guarantee an insurance policy is a personal and exclusive right of the policyholder.