January 19, 2022
Flexibility is a major aspect of OneLife solutions. It is inherent to all levels of the solution, in the contract’s features, the variety of investment vehicles, and in its open architecture.
Many features can be tailored at the application stage, and in some instances throughout the life of the contract. Some aspects may appear insignificant but prove to be decisive for your client. The choice of the option as to when the policy is to be terminated (on the death of the assured or at a specified date during the assured’s lifetime) may be an important factor in regards to the tax benefits in certain regions of Spain. The appointment of beneficiary(ies) can also be adapted to the evolving context of your client during the contract’s lifetime.
Investment-wise, the solution also offers significant flexibility with four options available:
- External Funds
- Internal Collective Funds
- Internal Dedicated Funds (discretionary mandate by default)
- Specialised Insurance Funds (advisory or buy & hold, only available in some countries such as France or Portugal)
As your client’s needs may change over time, (s)he doesn’t need necessarily to choose only one investment vehicle. It is possible to combine different vehicles within the same contract and switch between them without surrendering the contract (according to his/her tax residence).
The external fund and the internal collective fund solutions allow for collective asset management and are available with an initial premium of EUR 100,000.
The two other solutions allow for individual asset management. Each fund is tailored to the specific needs of a single client and is available with a minimum initial premium of EUR 125,000 and a net investable wealth of EUR 250,000.
Appointment of custodian bank
For each of these bespoke solutions, your client can appoint the custodian bank of his/her choice and change at any time. It can be one of the 90+ OneLife partner banks, or a new one, provided it is authorised by the Commissariat Aux Assurances.
A custodian bank is often referred to somewhat irreverently as just a holder of the funds, but in reality, this choice has a substantial impact on the overall investment servicing proposition. Quintet Private Bank (Quintet) is one of OneLife’s partner banks offering, for example, many advantages due to the long-standing relationship between the two parties.
Quintet Private Bank & OneLife
Quintet’s story started in Luxembourg 70+ years ago. First named Kredietbank, it expanded over Europe and consolidated under Quintet Private Bank in December 2020. As a Luxembourg-based bank, it is supervised by the Commission de Surveillance du Secteur Financier (CSSF).
In addition, as custodian of underlying assets of OneLife contracts, it is also regulated by the Commissariat Aux Assurances, Luxembourg insurance regulator keeping a close eye on the bond holdings, according to the Luxembourg Triangle of Security. Its role is to protect the policyholder by separating the assets held within a life assurance vehicle from those of the insurance company and the custodian bank, providing the policyholder with a guarantee against insolvency of the insurer or bank.
With these two prudential authorities, the assets deposited at Quintet and held within a life assurance contract benefit therefore from a very high level of protection.
In addition, Quintet delivers a balance between automation of activities and human contact.
Quintet has a partner-centric approach. A Client Relationship Manager (CRM), dedicated to each IFA/life assurance company, liaises with the various experts in-house and manages holistic responses for a tailor-made service.
What is more, many services are available 24/7 thanks to direct access to Quintet’s platform, “MyQuintet Pro”. Fund manager/advisor can easily manage their client’s assets. They can view each portfolio and upload financial reporting as well as manage real-time transactions.
And last but not least, the account opening is a furiously fast service! It takes around 30 minutes to 1 hour thanks to the strong connections between OneLife and Quintet and account duplication is fully automated.
The same applies to the fund offering with 42 000+ funds available and a fast service for on boarding new ones.
At OneLife the standard currency for a contract is Euro, but contracts can also be opened in Sterling, Dollar, Swiss Franc, Danish krona and Swedish krona, all currencies that Quintet is familiar with.
For clients looking for a credit facility, the life assurance portfolio value can be collateralised. Quintet proposes 2 types of credit: the classic mortgage loan and the Lombard loan.
The Lombard loan enables the client to leverage their portfolio or make investments outside the bank – financial or real estate – with their insurance contract as collateral for credit repayment. Quintet proposes 2 possibilities: bullet repayment (the capital is due at maturity of maximum 10 years) and amortisation repayment (constant capital or constant capital and interests due no later than 15 years after the Lombard loan is granted).
For further information on Luxembourg life assurance or what OneLife can do for you, please contact our teams.
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- Our comprehensive white paper on Luxembourg life assurance featuring client case studies
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- OneLife Luxembourg life assurance contracts for UK partners and clients – What impacts following Brexit?
- Luxembourg: your safe haven! – Solid, innovative and transparent