What do OP Unit-linked Insurance and OP Savings Agreement have in common?
OP Unit-linked Insurance and OP Savings Agreement allow you to save for the future. You can start saving through insurance with a small amount and continue with a monthly saving plan or occasional sums. Both types of insurance are intended for long-term saving and investing and are flexible if your plans or life situation change.
Unit-linked insurance and capital redemption contracts offer a similar range of investment options. You can change your selected investments in our digital services free of charge and withdraw all or part of your savings at any time. You only pay taxes when you withdraw savings.
What are the differences between OP Unit-linked Insurance and OP Savings Agreement?
A unit-linked insurance plan is valid until you turn 100. A capital redemption contract is valid for up to 30 years or until you turn 100. You can withdraw funds from a unit-linked insurance plan or capital redemption contract at any time.
The most important difference between the two products is that a unit-linked insurance plan includes a death benefit, while a capital redemption contract does not. In a unit-linked insurance plan, you choose the beneficiary who receives the funds after the end of the savings period, as well as the beneficiary to whom the funds are paid in the event of your death. In a capital redemption contract, on the other hand, the saved amount is paid to you after the saving period or becomes part of the estate's assets in the event of death. In the event of the policyholder's death, a capital redemption contract continues, while a unit-linked insurance plan ends.
Unit-linked insurance allows you to plan your inheritance with a beneficiary clause and transfer funds to your chosen beneficiaries without a will. The beneficiaries gain access to the insurance benefit quickly, usually before the estate inventory.
A capital redemption contract enables wealth planning across multiple generations.
Compare the features of OP Unit-linked Insurance and OP Savings Agreement
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|
OP Unit-linked Insurance |
OP Savings Agreement |
|---|---|---|
|
How long is the insurance period? |
Until the policyholder turns 100 |
Up to 30 years or until the policyholder turns 100 |
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What kind of death benefit is included? |
100% of the insurance assets |
No death benefit |
|
Does the insurance continue after my death? |
No |
Yes |
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What happens to the insurance assets in the event of the policyholder's death? |
The insurance assets are paid to the beneficiary named in the beneficiary clause of the death benefit |
The insurance becomes part of the death estate's assets |
|
What investments can I select for the insurance? |
OP funds, OP Life Assurance investment baskets and structured investment products |
OP funds, OP Life Assurance investment baskets and structured investment products |
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How can I make changes to my investments? |
Free of charge in the digital services |
Free of charge in the digital services |
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When can I withdraw savings from the insurance? |
At any time in part or in full |
At any time in part or in full |
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Does withdrawing savings cost something? |
No, after your plan has been valid for more than 3 years. For the first three years, the withdrawal fee is a percentage of the amount of savings you withdraw, and always at least €50: 1–12 months, 3% 13–24 months, 2% 25–36 months, 1% over 36 months, 0% |
No, after your plan has been valid for more than 3 years. For the first three years, the withdrawal fee is a percentage of the amount of savings you withdraw, and always at least €50: 1–12 months, 3% 13–24 months, 2% 25–36 months, 1% over 36 months, 0% |
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When are capital gains taxed? |
When the savings are withdrawn |
When the savings are withdrawn |
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How are the savings taxed? |
When savings are withdrawn: The invested capital is tax-free for the policyholder. Returns are taxed as capital income. When the policy matures: In unit-linked insurance, returns are always taxed as capital income, regardless of who receives the funds. The invested capital is tax-free for the policyholder. The capital is taxed as a gift if the beneficiary is a next of kin. If the funds are paid to a person other than the beneficiary or a next of kin, the entire amount is taxed as capital income. In the event of death: The insurance payout is taxed as inheritance if the beneficiary is a next of kin. The insurance payout is taxable capital income if the beneficiary is not a next of kin of the insured person. If the insurance assets are paid to the insured person's death estate, it becomes part of the estate's assets and is taxed as inheritance. |
When savings are withdrawn: The invested capital is tax-free for the policyholder. Returns are taxed as capital income. When the policy matures: The invested capital is tax-free for the policyholder. Returns are taxed as capital income. In the event of death: A capital redemption contract does not have a beneficiary and does not end upon the policyholder's death. In the event of death, the capital redemption contract is transferred to the estate, and the distributees can continue investing in the policy, withdraw part of the funds or terminate the policy entirely. |
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How much are the management fees? |
The management fee is 0.4% per year for insurance assets up to €82,500 and 0.2% per year for the amount exceeding €82,500. Starting from the fourth year of the policy, the management fee is at least €1.65 per month |
The management fee is 0.4% per year for insurance assets up to €82,500 and 0.2% per year for the amount exceeding €82,500. Starting from the fourth year of the policy, the management fee is at least €1.65 per month |
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Do I earn OP bonuses from the insurance? |
Yes |
Yes |
For whom are unit-linked insurance and capital redemption contract suitable?
OP Unit-linked insurance is suitable for you if you are looking to save long term and transfer wealth to selected beneficiaries without a will. If you are thinking about planning your inheritance, a unit-linked insurance plan may be a good option for you.
OP Savings Agreement is suitable for you if you are looking to build an investment portfolio and accrue savings for yourself.
The selected investment products, return target and risk appetite may affect your experience of the investment insurance. We recommend exploring different alternatives and choosing the solution that is right for your situation.
Learn more about unit-linked insurance and capital redemption contracts!