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Saving through insurance for a child

Fund investing for a child is also possible with unit-linked insurance.

Saving through insurance for unit-linked insurance is a form of saving and investing, where you can select a child as a beneficiary for savings without the consent of their guardians. You only need the personal ID code of the child for the beneficiary clause.



Open an OP Unit-linked Insurance for yourself, select the child as the beneficiary, and start saving with, say, 100 euros per month or a one-off investment.



You can include various funds and investment baskets in a single insurance contract and change them in digital services at any time free of charge. This way, your choice can impact the amount of savings that your child accrues.



You can include various funds and investment baskets in a single insurance contract and change them in digital services at any time free of charge. This way, your choice can impact the amount of savings that your child accrues.


Why start saving through insurance for a child?

Saving through insurance with OP Unit-linked Insurance, i.e. endowment insurance, is a flexible way to save money for a child. Separate consent or authorisation is not needed from the child’s other guardian or the parents of a godchild or grandchildren, for example. 

After the end of the agreement, the savings will be transferred to the child selected as a beneficiary, so you can change investments freely while the agreement is in force, for example. You will not have to pay tax on your accumulated returns when changing investments, as returns are only taxed when the savings are withdrawn.

Teach financial skills to children and help them get started financially.

Avoid buying unnecessary consumer goods.

Save money with automatic transfers on the child’s significant days, for example.

Watch the video to see how endowment insurance works


How do I start saving through insurance for a child? How to get started

Take out OP Unit-linked Insurance and select a child as the beneficiary. If necessary, you can change the beneficiary on our digital services later. You can save a monthly sum or make a one-off investment. You can get started with 100 euros per month, for example. You can choose various investments for the unit-linked insurance, which you can also change in the digital services for free.  

A unit-linked insurance can end on the date signed on the agreement or upon the death of the insured person. If you want the child to receive the funds on reaching the age of 20 to pay for their first apartment, driving lessons or their education, you can select the desired date as the end date. The end date can be no sooner than 3 years from the start date. 

Unit-linked insurance also includes life insurance, which means that in the event of death, your savings will be paid to the beneficiary of your choice.

Good to know about the taxation of saving through insurance

Returns on an endowment policy are always considered taxable capital income. 

However, as an insurance saver, you can change the investments included in the insurance policy without any tax consequences. As the policyholder, you can withdraw the funds fully or partially during the policy’s period of validity, if you so wish. The returns are liable to tax only when you withdraw funds from your insurance. The taxation depends on how much of the amount withdrawn consists of returns.

Read more about the taxation of unit-linked insurance >

The taxation of the investment amount or the amount of death benefit depends on the person you choose as the beneficiary. If the agreement ends during your lifetime and the child selected as the beneficiary is your next of kin, the capital, i.e. the insurance premiums paid, are subject to gift tax. Gift tax is not payable if, combined with other gifts to the child, the capital amount paid from the insurance does not exceed 4,999 euros in any three-year period.

What kind of investment products to select for OP Unit-linked Insurance? 

Saving through insurance for a child is also possible through unit-linked insurance. Unit-linked insurance is an insurance contract, i.e. an investment wrapper, that allows you to choose the desired investment products. In OP Unit-linked Insurance, you can choose from almost all regular funds, responsible investment funds and actively managed investment baskets intended for insurance savers. By diversifying investments into various instruments, you can even out risk and develop a suitable portfolio for your savings target.

Take a look at our selection of investment products under saving through insurance >

How can a child start saving through insurance?

Unit-linked insurance can also be started in the name of the child. However, both guardians must give their consent for this. If a personal OP Unit-linked Insurance policy is taken out for a child, the child becomes an OP customer. 

Read more about saving and investing for young people >

How can the child claim the funds?

A child selected as the beneficiary receives the saved funds at the end of the agreement. It is a good idea to discuss how to utilise the savings with the child. We are also pleased to help young people to start saving and manage their savings on a long-term basis and in a responsible manner. A person aged 18 or over may also book an appointment for free-of-charge investment advice at their own OP cooperative bank.

The costs of OP Unit-linked Insurance consist of annual service fees, investment product expenses and any potential drawdown fees or surrender charges. Switching investment products online is free. When you want to withdraw your savings, you are also liable to pay the necessary taxes. The returns you withdraw are subject to capital gains tax.

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The insurance is issued by OP Life Assurance Company Ltd, with OP cooperative banks acting as its agents. Investment services are provided by OP cooperative banks. The funds are managed by OP Fund Management Company Ltd. The policyholder shall bear the risk of a fall in or loss of the amount of insurance assets. Past performance is no guarantee of future performance. The value of the investment may rise or fall, and therefore the policyholder may lose the capital they have invested partially or in full. Taxation is based on the legislation in force at the time and can change.