Investment solution for businesses – saving through insurance for businesses

Build your company's wealth with a capital redemption contract
1

Easy-to-manage and comprehensive solution for your company’s investment needs

The investment solution for businesses is a form of saving through insurance for companies and institutions that allows funds to be invested easily and flexibly. It allows you to build your company's wealth and prepare for needs such as capital expenditures. The capital redemption contract for businesses provides flexibility in situations such as generational handovers, acquisitions and asset deals.

2

Diversify your company's investments extensively and cost-effectively

As an insurance saver, you decide the risk and investment horizon of your company's funds. You can choose from actively managed asset and wealth management solutions and fixed-income investments suitable for cash management, backed by leading portfolio management expertise by OP Asset Management.

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Switch investments without fees and pay capital gains tax only when withdrawing funds

You can switch between investments without paying fees during the term of the contract.. You only pay tax when you withdraw all or part of the funds. This means your investments benefit from the compound interest effect, and you have the best chance of good returns. In accounting, a single row is sufficient, regardless of the number of investment products. In other words, a capital redemption contract is also a convenient solution from an accounting perspective and does not require an LEI code.

What type of capital redemption contract is the investment solution for businesses?

Are you planning to invest your company's funds through the company? The investment solution for businesses is a unit-linked capital redemption contract for businesses that is intended primarily for long-term investment.

You can get started with 25,000 euros. Within the contract, you can choose from a range of investment products and switch between investments if necessary. You can withdraw all or part of the funds during the contract term. A decreasing withdrawal fee is applied for the first three years, after which withdrawing funds is free of charge. The contract is fixed-term and valid for up to 30 years. Capital gains are taxed only when withdrawing the funds.

The insurance-type investment solution for businesses is a comprehensive, cost-effective and flexible solution for small and medium-sized enterprises as well as investment firms, limited liability companies and large corporations. A capital redemption contract may be a suitable option for your company if

  • you wish to focus on your core business
  • you wish to pick the investments yourself or select investment solutions managed by professionals
  • you are seeking a moderate return on your company's funds with a lower risk or a higher return with a larger risk

What investment products are available for the investment solution for businesses?

The capital redemption contract for businesses offers a wide range of investment products for your company's asset management and the option to cost-effectively diversify your investments. The investment products are backed by OP Asset Management's best expertise in portfolio management. The range of investment products includes both actively managed asset management solutions and fixed-income investment alternatives ideal for cash management. You can also choose sustainable investment products.

You decide the risk of your company's investments and the estimated investment horizon. Based on these factors, your funds will be invested in ways that suit and support your objectives. 

Benefits of the capital redemption contract for businesses

  • withdraw funds at any time
  • offers investments with different levels of risk and switch between investments without fees
  • flexible and straightforward contract for seeking returns on investment
  • offers investment products that are only available when saving through insurance
  • allows investing in fixed income investments
  • a tax-effective way of saving – return on investment is only taxed when withdrawing funds
  • no LEI code required
  • transparency – comprehensive and easy-to-understand reports

Customer stories

”Allows me to build up savings easily”
Leena, hairdresser and business owner

”I don't need to actively keep track of my investments when I know that my funds are diversified effectively.”

“Keeps the balance sheet tidy”
Matti, finance director

”I can choose investment products and switch between products within the contract without the need for multiple balance sheet entries.”

”I can make adjustments based on how my business is doing”
Timo, plumber and business owner

”I can make additional investments when business is good and withdraw funds whenever necessary.”

Capital redemption contract in accounting

From an accounting perspective, the capital redemption contract is an easy and effortless solution for the company. The capital redemption contract is reported in accounting under fixed assets as an investment made by the company. If your company has a capital redemption contract, the balance sheet entry is made as a single row listing the purchase price, even if the funds are diversified in several investment products.

Taxation of the investment solution for businesses

How are investments made through the company handled in taxation in the case of the investment solution for businesses? A capital redemption contract made by the company is treated as income derived from business. The insurance assets consist of payments made to the contract and the potential returns generated from an increase in the value of the investment products In the taxation of the capital redemption contract, returns on investment are taxable income in the year of payout. You can change investments within the insurance wrapper without tax consequences. The investment solution for businesses is taxed when you withdraw savings. If part of the funds are withdrawn during the term of the contract, the relative proportion which at the time of payment corresponds to the proportion of returns of the insurance assets is considered taxable income. 

Deducting losses from the investment solution for businesses in the company's taxation

The value of investments can rise and fall, and the policyholder bears the risk for losing part or all of the invested capital. If the capital paid into the plan is greater than the amount paid out from the plan during the term of the contract, the difference is treated as a loss. As of 1 January 2020, any loss is deductible from taxation for the year in which the insurance is terminated. Any loss is deducted from the income of the source to whose funds the contract applies. In terms of taxation, deductible expenses arise either when the contract expires or when the policyholder withdraws all the insurance assets before the end of the contract period.

Learn more about options for saving through insurance for personal customers

You can also begin saving through insurance as a personal customer by opening a OP unit-linked insurance plan or OP Savings Agreement. You can get started even with a small sum and set up a regular savings plan or make one-off investments.

Start saving through insurance for a business

Book an appointment at an OP branch and start saving through insurance for your company. We will create an investor profile and investment plan for your company, covering goals and the investment horizon, among other things. We will then design a suitable investment solution for your company.

The information about taxation is based on tax legislation valid as of 1 January 2024. Taxation of insurance is subject to change and complies with the tax legislation in force at any given time.

The insurance is issued by OP Life Assurance Company Ltd, with OP cooperative banks acting as its agents.