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- Life insurance with savings for child's future
Life insurance with savings for child's future
- Capital for your child's education or any other important purpose
- Life insurance for parents
- Personal income tax incentives
- Benefits
- Security
- Savings
- Receipt of the savings
- Calculator
- Possibilities at internet bank
- Changes
- Price list
Why should I put aside savings for my child?
When your child will reach adulthood, he/she might need your support for starting an independent life, for example for:
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tuition fees -
buying home -
buying a car -
other expensive purchase
Be prepared to provide this support by starting to invest in the future of your child already now.
Advantages and opportunities of life insurance savings:
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Flexible contributions
Unlimited amount of contributions and a possibility to change it during the whole term of the contract. -
Control over the savings
The savings is the property of the saver for all contractual period. At the end of the term, it is possible to decide for what purpose to use it. -
Savings are invested
You have the opportunity to choose between several fund strategies to invest in, thus potentially increasing the amount of the savings in the long run. -
Tax relief**
Income tax relief of 20% for your contributions. This means, that for every 100 EUR paid in savings, you will regain 20 EUR from the state.
* The offer is valid from 01.04.2019 to 30.06.2019. Child’s amount of accident insurance is EUR 7000.
** Please note that the tax information provided herein is based on the currently applicable legislation, however, the tax legislation can change over time. The tax result may be different on a case-by-case basis.
Life insurance
Your life will be insured along with building up your savings, providing financial protection for your child. If the worst happens and the child's parent dies, the insurance amount and the savings are paid into the account of the child.
Personal accident insurance
You also have the option of choosing the accident insurance for yourself or your child. Insurance will be valid 24 hours every day, regardless of your or your child's location – at school, at work, at home, in your spare time.
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SAVINGS
Future capital of your child
- You will pay into your savings an amount of your choice on regular basis.
- You can choose the frequency of your contributions – monthly, quarterly, half-yearly or annually.
- Contributions in savings can also be paid by relatives and friends (you will not be entitled to the tax incentives for the contributions made by other persons).
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PROFITABILITY
Savings will earn interest
- You can build savings with guaranteed return – savings will have a fixed interest rate for the entire insurance period.
OR
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You can build savings into investment funds with the opportunity to earn more depending on fund performance and the acceptable risk.
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TAX BENEFITS
20 % of the contributions made
- If the contract is concluded for a period of at least 10 years, you can receive personal income tax incentives in amount of 20 % of the contributions, not exceeding 10 % of your annual gross salary or 4000 EUR per year.
- Your can calculate your tax incentive options in the tax calculator.
- Read more about tax benefits
At the end of the contract period
When concluding the contract, you will determine the term when you can access the accumulated capital. By submitting the Indemnity Application (LAT, PDF), the child will receive the actual savings.
Early termination of the contract
If any unexpected situation occurs, and you suddenly need the accumulated money before the term, you can also terminate the contract before its expiry, receiving the specified redemption amount. If you have received individual income tax incentives breaking the contract within the first 10 years, you will have to reimburse the individual income tax on the amount for which the tax incentives had been applied.
In case of death of the insured
If the worst happens and the child's parent dies, the insurance amount and the savings are paid into the account of the child on basis of the application of the child's lawful guardian.
Important! In accordance with the law "On personal income tax", income from savings with life insurance of a natural person is subject to tax. The tax to be paid is 20 % of the life insurance contract income, determined as the difference between the payable savings and all contributions paid during the agreement (instead of the amount of all savings). The tax is to be paid on the date of earning the income, namely, at the moment of payment of savings or redemption cost and the payer of the specific income is responsible for collection of the tax, i.e. SEB Dzīvības apdrošināšana. So you will not need to take any additional action on declaration and payment of the tax.
Calculate how much you need to save for your child’s future
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Monthly deposit in savings accountEURMonthly deposit must be between 35 and 999 EUR
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Savings termyearsSavings term must be between 10 and 18 years.1089 EUR(approx.)Amount saved at maturityThe final amount depends on deposited amount, chosen life insurance premiums and funds performance.
With 3% profit: 1489 EUR
With 0% profit: 1000 EUR
With -3% profit: 996 EUR
1000 EUR(100 EUR yearly)Tax refund amountTax refund amount depends on income and the amount you are already paying in other savings products. To receive tax refunds an application with income data once a year should be submitted in State Revenue Service.ApplyTotal returns: 2089 EUR(savings + tax refund)Return
Adding money to savings
The insurance contract provides a free choice of payments; however, it is recommended to make regular payments to build sufficient savings. For your convenience, Ibanka provides the possibility to create a regular payment order, which SEB banka will execute automatically with regularity and amount set by you.
It is also possible to make additional contributions into the savings through internet bank – at any time and with the amount of your choice.
Full details of the insurance contract and savings
Internet bank provides information on all your contracts, terms, insurance amounts, beneficiaries, and you can keep track of your savings.
Changes to the contract
You can make various amendments to the contract through internet bank – apply for the indemnity at the end of the period of the contract, change the selected funds where your existing savings are deployed, change the fund for further savings, as well as change the risk tolerance limits.
Unit-linked life insurance with savings
Terms and Conditions No. 101.060/101.061
| Consultation on the conclusion of the agreement, review of the application | Free of charge |
| Purchase or sales of investment units | Free of charge |
| Changes in allocation of further contributions or existing savings | Free of charge |
| Change of life insurance sum insured | Free of charge |
Limitations
| Minimum life insurance sum insured | 150.00 EUR |
| Minimum accident additional insurance sum insured | 1 500.00 EUR |
| Minimum surrender value | 0.00 EUR |
Terms of executing calculations, amendments and termination
| Purchase of investment units |
Within 5 working days after receipt of the insurance premium1 |
| Calculation of the accumulation in case of death of Insured |
Within 5 working days after the application submission date1 |
| Calculation of the accumulation in case of termination of the insurance agreement | The surrender value is calculated in accordance with the agreement within 5 working days after the application submission date1 |
| Calculation of accumulation in case of maturity of the insurance agreement |
Within 5 working days after the agreement end date1 |
| Changes in allocation of further contributions |
Within 5 working days after the application submission date |
| Changes in allocation of existing savings: | |
| • sale of investment units |
Within 5 working days after the application submission date1 |
| • purchase of investment units |
Within 5 working days after execution of the sale transaction1 |
| Change of the Life insurance sum insured (changes take effect starting with the next payment period indicated in the policy) |
Within 10 working days after the receipt of all required documents |
Currency exchange rate
| Currency exchange rate, if currency exchange is required | Currency at the exchange rates of the European Central Bank on the day of the calculations |
Guaranteed yield of savings
| Guaranteed savings in EUR | Standard interest rate EUR on Savings deposit of SEB bank |
| Guaranteed savings in USD | Standard interest rate USD on Savings deposit of SEB bank |
1 Except when a Management Company provides the performance of transactions according to a different schedule (for example, Funds may be closed for transactions and the value of their units is not calculated if there is a bank holiday in the country in which the fund is registered or/and managed).