Liechtenstein life insurance: Make sure you choose the right provider

20. October 2022

Life insurance policies under Liechtenstein law combine many advantages. However, savers should choose the insurance company carefully in order to secure the policy and the assets permanently.


The small Alpine country of Liechtenstein stands internationally for the highest financial and economic stability and solidity. Liechtenstein is a successful business location, has one of the highest industrial quotas in the world with around 41 percent of gross value added coming from industry and goods-producing trades, and generates a gross national product per inhabitant of around 165,000 US dollars, one of the highest values worldwide. The constitutional monarchy with a hereditary monarch at the head of state – Prince Hans-Adam II is represented by Hereditary Prince Alois of Liechtenstein – is a member of the United Nations (UN) and the European Economic Area (EEA), but, like Switzerland, is not a member of the European Union (EU). The country has a fiscal protected framework with AAA rating, no sovereign debt and bank liability risks under the European Stability Mechanism.


Especially for security-oriented investors, Liechtenstein is the ideal place to invest assets with a view to the future. Asset protection and far-reaching opportunities for continuous asset development go hand in hand. “This also applies to life insurance, for example. The activities of insurance companies in the Principality are subject to the Liechtenstein Insurance Supervision Act. Among other things, this law expressly provides that the assets covering the technical provision, the so-called cover pool, constitute a special estate under the Bankruptcy Code to satisfy insurance claims,” says Hannes Fahrnberger, CEO of the Insurance company Vienna-Life Lebensversicherung AG in Liechtenstein, which belongs to the international holding company Vienna Insurance Group in Vienna.


“It is important for savers to choose the insurance company carefully in order to secure the policy and the assets permanently. Due to the high attractiveness of Liechtenstein life insurance solutions and the location in general, the range of policies has grown strongly. However, this does not mean that all companies equally stand up to stringent checks in terms of seriousness and solidity,” emphasizes Hannes Fahrnberger and refers to some figures of Vienna-Life Lebensversicherung AG.


For example, the company has a minimum insolvency ratio of 422 percent. The ratio indicates whether an insurer has sufficient equity to meet its obligations to policyholders and other beneficiaries, even in model extreme scenarios. Hannes Fahrnberger: “We also see this high ratio as proof of many years of sustainable management out of responsibility to our customers, our partners and society. When we as a life insurance company manage more than one billion Swiss francs, we naturally feel committed to corporate sustainability in the interests of our customers, irrespective of current trends.”


Vienna Life also attaches great importance to top quality when it comes to its sales partners. “We only work with partners who share our philosophy and really want to provide our customers with long-term support and advice. We are not interested in quick deals. We stand for partnership-based support and management of the assets entrusted to us for decades to come. That’s what really counts in these fast-moving times,” emphasizes Hannes Fahrnberger.


Vienna-Life is one of the recognized and established specialist providers of flexible unit-linked and unit-linked life insurance and pension solutions issued in accordance with Liechtenstein insurance law. Vienna-Life’s solutions focus on preserving assets over the long term, especially in very dynamic and disruptive times, and on passing them on to the next generation in a structured and fiscally and strategically optimized manner. For many years, the Liechtenstein provider has focused on the “Wealth Creation Policy” and the “Private Wealth Policy”: Both products are protected by the Liechtenstein Insurance Supervision Act and, by intelligently structuring assets, aim to achieve sustainable success in personal wealth management, capital protection and retirement planning.

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