If you’re looking for a secure way to save, life insurance (class 21) savings product  is a good option. It’s a flexible way to save, with each deposit earning a fixed rate of interest after any taxes and entry charges have been deducted. Depending on the economic situation and the insurer's operating results, a variable non-guaranteed profit share may also be paid.

Some guaranteed-interest life insurance products qualify for tax relief, which can give you a tax saving of up to 30% on the amounts saved.

Tax-efficient saving for later (under the tax-efficient long-term savings scheme) can even mount up to 2 350 euros per year, depending on the level of your earned income. You can still enjoy this tax benefit during your retirement, provided that you keep paying sufficient taxes.

The maximum amount of savings eligible for tax relief depends on your personal situation. If you have had tax relief on a certain saved amount, you will have to pay tax on the final capital sum. Depending on the system that gave you tax relief, you pay tax on your pension savings or long-term savings. You pay this tax on your 60th birthday, or 10 years after the start of the contract if you were over 55 when you took it out. It’s important to remember that the tax rules may change in the future. Learn more about maximum tax-deductible amounts for pension saving.

You can also combine pension saving and long-term saving.

Death cover can be added into any guaranteed-interest savings insurance plan, enabling you to offer your nearest and dearest protection for if you should die. This is worth thinking about if you have a home loan. The premiums for this additional cover are deducted monthly from the accumulated savings under the contract. 

You choose the beneficiary who receives the accumulated capital in the event of your death. When dealing with tax contracts, be sure to take into account the conditions for obtaining the tax benefit.

• Most guaranteed-interest life insurance products are subject to a one-off insurance tax of 2%. Pension saving is exempt from this tax.
• You pay an entry charge of 5% on the net premium (after deduction of insurance tax).
• KBC does not charge an annual management fee for guaranteed-interest life insurance products.
• You only pay withholding tax if you choose to withdraw capital within the first eight years of the term. Many other investment products require this withholding tax to be paid regardless.

KBC Home & Pension Plan
Interested in a long-term, tax-efficient way to build up a tidy supplementary pension? Learn more.

KBC Home & Long-Term Plan
The KBC Home & Long-Term Plan is a tax-efficient and beneficial way to save for your retirement. Check out what it has to offer.