For many years, unit-linked life insurance policies issued by Liechtenstein insurance companies were popular products among investors for investing their assets. In many cases, it became apparent over time that the performance targets promised by brokers and insurance companies were far from being achieved. Instead, high losses, even total losses, became extremely common. However, investors do not have to accept these losses by all means.
Based on the latest established case law of the Liechtenstein civil courts, it is often possible to withdraw from the initial contract. This applies both to active insurance contracts and to contracts that have been terminated due to expiry or cancellation.
In the case of active insurance contracts, the investor is entitled to payment of the difference between the capital paid in and the current value of the policy assets, as well as statutory interest on the difference for the last three years. In the case of terminated insurance contracts, the investor receives the difference between the capital paid in and the repayment received, plus statutory interest for the last three years on the difference, if they subsequently withdraw.
In both cases, according to case law, the investor is placed in the same position as if he had not concluded the insurance contract at the time.
The Liechtenstein civil courts grant investors a right of withdrawal if the insurance company did not comply with the comprehensive statutory information and instruction obligations to the extent required by case law when the contract was concluded.
Investors can exercise this right of withdrawal within a period of up to 30 years from the conclusion of the contract, as the claims are claims for unjust enrichment.
This statutory period is soon to be reduced to ten years from the conclusion of the contract by a planned amendment to the law, which will significantly restrict the rights of investors.
Although a transitional period is to be expected, policyholders of Liechtenstein unit-linked life insurance policies are strongly advised to check whether, based on current case law, the conditions for withdrawal from an active or terminated insurance contract are met. If a right of withdrawal exists, there is a good chance of full compensation for the loss of the capital paid into the unit-linked life insurance policy.
Experience shows that in such cases there is also a high probability that litigation financiers will finance the assertion and enforcement of claims, thereby minimising the risk of legal costs.
Niedermüller Rechtsanwälte has an experienced team of litigation solicitors who have already conducted well over 100 proceedings relating to unit-linked life insurance policies and brought them to a successful conclusion. We work together with professional international litigation funders who finance such proceedings.
We would be happy to review your contract documents and advise you on whether claims against the insurance company in question should be pursued, and assist you in finding a potential litigation funder.
If you have any questions or are interested, please contact Fabian Rischka or Matthias Niedermüller.
1|2026