Long-term saving with a savings-linked insurance product
- Guaranteed rate of interest and a potential profit share
- Up to 30% in tax relief
- Starting from just 10 euros a month
What is the KBC Home & Long-Term Plan?
The KBC Home & Long-Term Plan is a savings-linked insurance product that enables you to set aside money for the long term. It’s a great way for you to build up a supplementary pension. Another plus point is that you can continue long-term saving even after you retire, meaning you’ll receive a fixed rate of interest for even longer and continue earning up to 30% in tax relief.
Learn more about long-term saving with the KBC Home & Long-Term Plan
What's the return on this product?
This savings-linked insurance product is very safe, because KBC Insurance guarantees that each net deposit you make will earn interest at a fixed rate until your contract ends. At present, the rate is 2.00%.
You could also receive an annual profit share. This is not guaranteed and can vary from year to year, as it depends on the results of KBC Insurance and the economic situation.
Tax efficient
You can claim tax relief of up to 30% on the amounts you save each year, depending on your personal situation and any future changes in the tax rules.
What’s more, you can combine long-term saving with pension saving. This is especially interesting if you don’t have a home loan, as it gives you the opportunity to get the most tax relief possible.
Save at your own pace
You decide when and how much to put in based on your personal financial situation. You can start investing from as little as 10 euros a month.
There is a limit on the amount you can save per year. That amount is calculated on the basis of your earned income or pension. Your personal maximum amount can, however, never exceed 2,450 euros, the absolute maximum figure for everyone.
When should you start long-term saving?
The sooner you start, the longer you can benefit from tax relief each year. Check below to see whether your home loan will have any impact and be sure to start long-term saving no later that just before you retire.
If you have a home loan, the date on which the loan started (along with your tax residence on 1 January) determines whether you can benefit from tax relief on a long-term savings plan.
In Flanders
If you’ve taken out a home loan in or after 2016 for your own property, you can fully combine long-term saving with the Flemish Housing Bonus. However, this housing bonus was abolished in 2020 and new home loans no longer impact tax relief on long-term savings plans anyway.
In Wallonia
It has been possible to combine both tax schemes (‘Chèque Habitat’ and long-term saving) in Wallonia for your one and only home since 2016.
In Brussels
You have been able to combine long-term saving with your home loan since 2017 because that type of loan no longer qualifies for tax relief.
It’s always possible to start long-term saving as long as you haven’t retired and if you will also have to pay taxes in retirement. This gives you the opportunity to enjoy a tidy bit of tax relief in the years to come.
Key characteristics of this insurance product
You decide how long you want to save for under the KBC Home & Long-Term Plan, though the contract must run for at least 10 years and cannot be terminated before your 65th birthday (unless the insured dies).
You are the policyholder and insured under the contract. You also choose a beneficiary who’ll receive the accrued benefit should you die before the end of the contract. However, that person must be your legal spouse, legally cohabiting partner or a blood relative to the first or second degree.
- There are no management fees.
- You pay an entry charge of 5% on each deposit.
- You pay a 2% insurance tax on each deposit.
- If the contract has been running for at least 10 years, you don't pay any exit charges when you take statutory retirement, early retirement or a bridging pension.
- There is a maximum exit charge of 5% on any amounts that are withdrawn early. This rate decreases by 1% per year during the last five years of the contract.
If you received tax relief on a deposit, you will have to pay an advance levy of 10% on the accrued benefit. You usually pay that levy on your 60th birthday (or on the 10th anniversary of the contract if you take out the policy after turning 55).
Any deposits you make after the advance levy has been deducted are not taxed and you continue to earn tax relief of up to 30%. So, it may be a good idea to keep saving.
This product promotes environmental and social characteristics that allow contributing to a positive impact on the environment or society, but does not have a sustainable investment as an objective. Moreover, we strive to limit any negative impact on the environment or society based on a responsible investment policy. More information can be found in your info sheet.
This product was awarded the ‘Towards Sustainability’ label for a period of one year. The label, which was developed by Febelfin (the Belgian banking federation), is re-evaluated every year. It is a quality standard under the supervision of the Central Labelling Agency of the Belgian SRI Label (CLA). The standard defines several minimum requirements that sustainable financial products must meet at product level and in the investment process. See www.towardssustainability.be/en/quality-standard for more details. Products that are awarded this label may not meet your own sustainability objectives and the label itself may not necessarily meet the requirements of future national or European regulations. Learn more at www.fsma.be/en/sustainable-finance.
More information
- The KBC Home & Long-Term Plan is a savings-linked insurance product in which the insurer bears the investment risk.
- The KBC Home & Long-Term Plan is governed by the laws of Belgium.
- The KBC Home & Long-Term Plan is covered by the Belgian deposit-protection scheme for guaranteed-rate life insurance. The scheme is triggered if it is established that KBC Insurance has defaulted. The protection currently amounts to 100 000 euros per policyholder for all reserves combined that are held with KBC Insurance under protected guaranteed-rate life insurance contracts.
- The guaranteed interest rate may change for future deposits. KBC Insurance determines the interest rate applying to your deposits during the term of the contract, based on the situation on the financial markets and/or changes to the legal requirements. If this interest rate changes, KBC Insurance will notify you accordingly.
- If you have a complaint, please contact Complaints Management, Brusselsesteenweg 100, 3000 Leuven, complaints@kbc.be, tel. 016 43 25 94. If you cannot find a suitable solution, you can contact the Belgian insurance industry’s ombudsman service: Ombudsman van de Verzekeringen, de Meeûssquare 35, 1000 Brussels, info@ombudsman-insurance.be. Alternatively, visit www.ombudsman-insurance.be. This does not affect your legal rights.
The KBC Home & Long-Term Plan is a product of KBC Insurance NV – Professor Roger Van Overstraetenplein 2 – 3000 Leuven – Belgium – VAT BE 0403.552.563 – RLP Leuven – IBAN BE43 7300 0420 0601 – BIC KREDBEBB
Company licensed by the National Bank of Belgium, de Berlaimontlaan 14, 1000 Brussels, Belgium, for all classes of insurance under code 0014 (Royal Decree of 4 July 1979, Belgian Official Gazette of 14 July 1979). Member of the KBC Group.
Documents
Be sure to read these documents before taking out the insurance.
