> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://help.taxx.lu/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# How is the deductible limit for outstanding balance insurance (single premium) calculated?

The deductible limit for outstanding balance insurance (single premium) is calculated as follows:

* €6,000 + €1,200 per child in the household
* an additional 8% for each year after the policyholder reaches the age of 30.

Here's an example:

A family of 4:
* The mother, aged 38,
* Father, aged 40
* Two children

**They can deduct up to €24,960 in total.**

Explanation:

Increase for the father aged 40 :
* 6 000€ + 2 x 1 200 € = 8 400 €
* 8% x 10 x €8,400 = €6,720

Increase for the 38-year-old mother :
* 6 000 €
* 8% x 8 x €6,000 = €3,840

|| Good to know! Single-premium outstanding balance insurance is deductible every 5 years on your Luxembourg tax return for your main residence. This allows you to cover part of a mortgage today and another part in 5 years' time, while taking full advantage of the tax benefits.