Tax exemption: yes or no? You decide.
Though, from a legal point of view, all ABN AMRO Life Capital contracts are 'life insurance', the name 'long term saving' is sometimes used to refer to the type of life insurance for which you can enjoy a tax rebate of 30% to 40% on the contributions you pay.
This also applies to pension saving. The maximum amount for which you are entitled to a tax rebate depends on the operating income of the policyholder, with a ceiling of 2080,00 (*) Euro per year.
Return in 2007 : 4,34% (1)
The payouts are subject to 10% tax, provided that all conditions are fulfilled. The tax authority does require that the contributions be invested in fixed interest-bearing investments. However, ABN AMRO Life Capital offers a range of various types of fixed interest-bearing investments and the shared profits may be invested by the policyholder in a more dynamic way if so desired.
If you opt to forgo tax rebates on your life insurance contributions, payouts that occur in the event of death or after the expiry date will not be taxed.
Nor do you need to continue the compulsory investment formulas set by tax legislation. ABN AMRO Life Capital offers a very extensive range of investment formulas, from fixed interest-bearing investments to very dynamic investment funds.
In the situation that you do not have proper whole life insurance and you want to call in the reserves within 8 years of signing the contract, an advance collection on income is derived from securities that are 15% payable on the interest sum. (Note: only if you´ve opted for a fixed interest-bearing investment).
(*) Fiscal year 2010, revenue 2009
(1) Note that the results from the past offer no guarantee for the future.