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Savings for Child's Future

Provide for your child’s future today!

Savings for Child’s Future is an investment-linked life insurance contract with the following benefits:

  • Profit opportunities and a guaranteed amount for your security
  • Life insurance for the contract holder
  • Possibility to receive a 20% refund on personal income tax

The sooner you start, the more you can save!

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Savings for Child's Future Calculator

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  • Savings for Child’s Future is an investment-linked life insurance contract for the contract holder. It provides a possibility to create meaningful savings for your child to get good education or start an independent life.
  • Long-term savings need to be protected against inflation, therefore the accumulated funds are invested in financial markets, but there is no need to worry – investments are made in accordance with the investment strategy, and the savings are also protected with a guaranteed amount.
  • You will be saving money for your child and we will handle investing it.
  • The savings are protected — there is a guaranteed amount at the end of the contract.
  • Life insurance for the contract holder. If the worst happens and the contract holder passes away, the unpaid part of the savings foreseen in the contract will be paid by Swedbank Life Insurance SE. This amount will be calculated as follows: your monthly contribution to the savings (max. EUR 100) times the number of full months remaining until the end of the contract term.
  • Additional income can be received for the contributions made to the savings in the form of a 20% personal income tax refund. The contract for Savings for Child’s Future gives you the opportunity to annually receive a 20% personal income tax refund on the contributions to the savings, not exceeding 10% of your gross annual salary, and no more than EUR 4,000 in total. However, if the term of the insurance contract is less than 10 years, then, as per the Law on Personal Income Tax, you cannot claim a personal income tax refund on contributions to the insurance contract.
  • Possibility to change the beneficiary.
  • Anyone can make an additional contribution under the agreement. This can be an idea for a useful present for the child’s birthday – relatives can contribute to the savings. Download the gift certificate to find out how to make the contribution.
  • Flexible contributions of your choice. The minimum monthly contribution is EUR 30.

Considering that this is long-term savings, and long-term savings need to be protected against inflation, the accumulated funds are invested in financial markets.

Investment strategy:

  • The contract offers an investment strategy, which takes into consideration the amount of time remaining until the end of the contract.
  • The longer the period until the end of the contract, the higher risk assets with higher potential returns are invested in. As the end of the contract term approaches, the investment strategy becomes more conservative with the goal of exposing the investment to less market fluctuations.
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Allocation for global equities is a high-risk long-term investment. By allocating funds for this investment one may expect both higher return and greater value fluctuations. The majority of the investments are made in equities in the developed markets, with the remaining part going to equities in the developing markets. The results are more stable in the course of change of economic cycles based on the stability of developed regions and the growth potential of developing countries.

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Allocation for medium-term bonds is a low-risk investment for the period of 5 to 7 years. Less fluctuation in value and lower return can be expected in case of this allocation. Investments are made in the euro area government bonds with a maturity of 5 to 7 years. This is an allocation with the unit value reflecting the average rate of return, i. e. the 5 to 7 year‘s term euro area bond index.

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Allocation for short-term bonds is a low-risk investment for the period of 1 to 3 years. Less fluctuation in value and lower return can be expected in case of this allocation. Investments are made in the euro area government bonds with a maturity of 1 to 3 years. This is an allocation with the unit value reflecting the 1 to 3 year‘s term euro area bond index.

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  1. Log in the internet bank and calculate what is the amount you would like to collect.
  2. Start concluding agreement.
  3. Fill in investment profile questionnaire.
  4. Verify and confirm the data entered.
  5. Monthly contributions will be made automatically, using e-invoices solution.

downloadDownload a certificate

If you have questions about concluding the agreement online, please call us on 67 444 444. Our Consultation Centre‘s specialists will be happy to assist and advise you.

Sign up for a consultation

Service Price, EUR
Applying
Contract conclusion Free of charge
Using
Insurance premium fee Free of charge
Contract handling fee (per year) The contract handling fee is not charged for insurance premiums for which investment units are not yet purchased.
The fee is withheld from the reserve once a month.
- Reserve <= 10 000 EUR 1,25% per annum of the Savings reserve
- Reserve > EUR 10 000 1,125% per annum of the Savings reserve
Guarantee fee 0,2 % per annum of Guaranteed Amount The Guarantee fee is deducted from the Savings Reserve.
Risk fee 2,5% monthly fee, shall be calculated from Monthly Risk Amount The Risk fee is deducted from the Savings Reserve.
Contract modifications Free of charge
Partial withdrawal of money:
if the outpayment is applied during the first five years from Сontract conclusion 1,0% of the withdrawal amount (minimal 20 EUR) The Service fee for the partial withdrawal of money is deducted from the withdrawal amount.
in other cases free of charge
Closing
Termination of the Contract:
if the outpayment is applied during the first five years from Сontract conclusion 1,0 % of the Savings reserve (minimal 20 EUR)
in other cases free of charge
Sum limits
Minimum monthly Insurance premium 30 EUR per month
Maximum Monthly Risk amount 100 EUR
The minumum Savings reserve after partial withdrawal 300 EUR

Effective from 18.12.2020

Related documents:

Manage your contract via Internet Banking:

Premature termination of the contract

If you wish to terminate the contract, you can do so at a branch office or by contacting the Call Centre beforehand — via Internet Banking. Before terminating the contract, please consider the following:

  • If the contract has been valid for less than five years, you will have to pay a termination fee as per the price list.
  • The guaranteed amount will be waived.
  • If you have received personal income tax refunds on the contributions to the savings, and the contract is terminated less than 10 years after it was signed (5 years if the contract was signed by 31.12.2017), you will have to repay the tax refunds you received.

Termination of the contract at maturity

When the child reaches the age until which the contract was in force, an application to receive payment must be submitted via Internet Banking or at a branch office.

The current demographic situation suggests that we have to reckon with the fact that our future pension could be even only half of what we earn today in salary.

Private Portfolio is for people who appreciate their time and convenience in making investments.

You will automatically top up your savings with a small amount every time you pay by card.

The insurance services are provided by Swedbank Life Insurance SE which is represented in Latvia by its branch and the tied insurance agent Swedbank AS.

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