Savings for Child's Future

Do you know how much do studies cost?

The average cost of studying is roughly 7000 EUR a year*:

Higher education costs roughly 2000 EUR a year on the average
The average expenses of student life amount to roughly 420 EUR a month
60% of students see financial support from parents as the main source of income

Savings for Child’s Future will help taking the first steps in adult life easier.

Start saving today to be able to save more!

* The study “Financial Behaviour of Students” was carried out by the market research company Spinter Research between 4 and 20 August 2020.

If you have any further questions, don’t hesitate to sign up for a remote consultation at a time convenient for you.

Minimum contract period should be 5 years.

The contract period you have selected is less than 10 years. It means, that you will not be able to claim income tax refunds for contributions in this case. If it is important for you (and possible), please, consider to change child's age at contract end date.

Add single payment

You can always contribute with separate single payments, e. g. by transferring some savings into Safe child’s fund at the start of the agreement.

Remove single payment

You can always contribute with separate single payments, e. g. by transferring some savings into Safe child’s fund at the start of the agreement.

EUR

Check your predicted investment return calculation by clicking on each of the different market scenarios:

Positive scenario

Money will be invested into 3 asset classes (Global equity, Mid-term Bonds, Short-term Bonds) according to the Investment Structure.

This scenario reflects a moderately positive investment performance, one comparable to historic averages in the respective markets.

The calculations for this scenario are based on the level of the average historical returns of the indices representing similar assets:

for equity index MSCI World Index annual return of +5.93% (period from 19.09.2000 till 16.09.2020);
for medium-term bonds index EuroAgg Corporate 5-7 Year annual return of +5.51% (period from 19.09.2000 till 16.09.2020);
for short-term bonds index Eurozone government bonds 1-3 years annual return of +1.46% (period from 19.09.2000 till 16.09.2020).

Source: Bloomberg.

Please note that past performance is not a guarantee for future returns, the investments value may rise or fall in the future.

Zero rate scenario

This scenario reflects the value of savings in case there is zero return from all the investments in the contract throughout its lifetime.

Money will be invested into 3 asset classes (global equity, mid-term bonds, short-term bonds) according to the Investment Structure.

Please note that past performance is not a guarantee for future returns, the investments value may rise or fall in the future.

Negative scenario

Money will be invested into 3 asset classes (global equity, mid-term bonds, short-term bonds) according to the Investment Structure. Investment Structure.

This is a pessimistic scenario assuming steep falls in the markets concerned. However, in this contract your funds are protected from large market downturns, as the amount to be paid at the end of the contract cannot be less than the guaranteed amount.

The calculations for this scenario are based on the average historical returns of the indices representing similar assets:

The worst 5 year period return for the MSCI World Index was -6.09% annually, while the worst 10 year period return was -3.89% annually (period from 19.09.2000 till 16.09.2020).
The worst 5 year period return for the mid-term bond index EuroAgg Corporate 5-7 Year was -0.06% annually, while the worst 10 year period return was -2.01% annually (period from 19.09.2000 till 16.09.2020).
The worst 5 year period return for bonds index Eurozone government bonds 1-3 year was -0.08% annually, while the worst 10 year period return was –0.14% annually (period from 19.09.2000 till 16.09.2020).

Source: Bloomberg.

Please note that past performance is not a guarantee for future returns, the investments value may rise or fall in the future.

The calculations of this scenario are based on the worst 10-year-period returns.

Predicted pay-out Predicted amount that would be paid-out to you at the end of the contract. It is shown already net of contract fees.
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Sum of monthly payments Estimated total sum of monthly payments to be paid into the agreement during its term.
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Tax refund In addition to having an opportunity for investing your funds, the Savings for Child‘s future entitles you to annual personal income tax refund of 20% of the amount of contributions which have been made towards savings and do not exceed 10% of your annual gross salary and the aggregate limit of 4000 EUR. However, it should be noted that the personal income tax refunds are available only if the duration of the insurance contract is 10 or more years.
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Predicted guaranteed amount Guaranteed amount becomes important should investment yield be negative by the contract Maturity. This gives the protection that the pay-out at contract maturity will not be lower than the guaranteed amount, regardless of how investments perform. The guaranteed amount at contract maturity is equal to total amount of payments paid into contract minus contract fees. If the contract is cancelled prior to maturity, the guaranteed amount is no longer applicable.
0EUR

Schedule of payment & fees

All values generated by this calculator are not guaranteed and only serve as an illustrative example generated based on the values entered/selected in the calculator. The value of an investment unit may increase or decrease during the contract and also the value of the reserve may accordingly increase or decrease in line with the value of the investment unit. The average annual yield forecast used by the calculator does not guarantee an equivalent yield in the future.
This estimate calculator uses variables and methodology (for example, savings profitability forecasts and their scenarios) which substantially differ from the savings profitability forecast calculation methodology provided in the regulatory technical standards of the key information documents for packaged retail investment and insurance-based investment products (PRIIPs). In deciding on the choice of the product, please refer to the calculation forecast results indicated in the Table of Performance Scenarios under the section "What are the risks and what might I get back” of the Key Information Document of your selected product.
The insurer has a duty to pay out the guaranteed amount only at maturity of the contract if the amount of the savings is smaller than the guaranteed amount at maturity of the contract.

Positive scenario

Contract year	Total amount of payments	Tax refund Tax refund for payments made during contract year.	Risk fee Risk fee is the fee for insurance protection - insurer's promise to proceed saving instead of you, should you die - and it depends directly on agreed monthly premium amount. It is calculated according to pricelist.	Other fees Management fee is used for management of your contract's life cycle investment portfolio and guarantee fee to protect your contract against negative investment results. It is calculated according to pricelist.	Estimated amount of savings It's estimated (prognosed) value of savings calculated with estimated interest rates and payments you have defined above. Actual value of saving depends on actual investment performance of assets. Investment performance is not guaranteed as it depends on underlying assets earnings from financial markets during contract period. It is shown already net of contract fees.

• All values generated by this calculator are not guaranteed and only serve as an illustrative example generated based on the values entered/selected in the calculator. Please take into account that the value of an investment unit may increase or decrease during the contract and also the value of the reserve may accordingly increase or decrease in line with the value of the investment unit.
• Please note that this estimate calculator uses variables and methodology (planned contribution, saving period selected, savings profitability forecasts and their scenarios) which substantially differ from the savings profitability forecast calculation methodology provided in the regulatory technical standards of the key information documents for packaged retail investment and insurance-based investment products (PRIIPs).
• In deciding on the choice of the product, please refer to the calculation forecast results indicated in the Table of Performance Scenarios under the section "What are the risks and what might I get back” of the Key Information Document of your selected product.
• The average annual yield forecast used by the calculator does not guarantee an equivalent yield in the future.
• The insurer has a duty to pay out the guaranteed amount only at maturity of the contract if the amount of the savings is smaller than the guaranteed amount at maturity of the contract.
• Further information about this service is available at any Swedbank branch or by calling customer service at 67 444 444 or by sending your question to e-mail address: info@swedbank.lv.

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.

Find out more

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.

Find out more

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.

Find out more

Log in the internet bank and calculate what is the amount you would like to collect.
Start concluding agreement.
Fill in investment profile questionnaire.
Verify and confirm the data entered.
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.

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

Manage your contract via Internet Banking

Change your monthly contributions (increase, decrease, suspend, resume)
Make an additional contribution
Change the beneficiary

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.

Savings for Child's Future

Do you know how much do studies cost?

Check your predicted investment return calculation by clicking on each of the different market scenarios:

Positive scenario

Investment strategy:

Related documents:

Manage your contract via Internet Banking

Premature termination of the contract

Termination of the contract at maturity

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