Are you thinking about topping up your investment-type insurance plan? That's a great idea, as it allows you to combine several benefits. What's more, you can do it easily online using Touch or Mobile. That's why we're happy to lay out all of the benefits and costs for you.
What are the benefits of an investment-type insurance plan?
- You spread your investments by combining bank funds with an investment-type insurance plan.
- You save on inheritance tax if you divide your assets among different people. You can even make twice the savings with Generation Skipping.
- You can make changes to your investment-type insurance plan at any time without having to pay extra taxes.
An investment-type insurance plan also serves as a good alternative to a will. For example, you can designate a beneficiary for whom the money is immediately available after death. In addition, you can protect your family or partner with supplementary 'death' cover.
How much will an investment-type insurance plan cost you?
Most investment-type insurance plans require payment of entry charges, an annual management fee and a 2% insurance tax.
Unlike many other investments, under the current tax system you do not pay withholding tax on the income from your class-23 investment-type insurance plan with (partial) capital protection if you don't withdraw funds from the insurance contract for at least eight years.