Savings for Child’s Future

Do you know how much studies cost?

The average cost of studying is roughly 7500 EUR a year:

Higher education costs roughly 2500 EUR a year on the average
The average expenses of student life amount to roughly 500 EUR a month
64% of students see financial support from parents as the main source of income

The study "Financial Behavior of Students" was carried out in cooperation with the research company SKDS in March 2023.

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 Savings for child’s future at the start of the agreement.

Remove single payment

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

€

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

Positive scenario

The money will be invested in 3 asset classes (global equities, medium-term bonds, short-term bonds) according to the Investment Structure.

This scenario reflects a positive scenario for investment performance based on the historically observed returns of the indexes representing similar assets over the period between 01.01.2012 and 31.12.2021:

Global equities: MSCI All Country World Index annual return of +11%
Medium-term bonds: Bloomberg Euro-Aggregate Index annual return of +4.5%
Short-term bonds: Markit iBoxx EUR Eurozone (DE ES FR IT NL) 1-3 annual return of +1.4%

As the basis for calculating the investment performance, the historically observed returns of the above-mentioned period were grouped by 5 years.

Then the investment return used in this scenario was determined by selecting the one of the higher historically observed returns (data on the 90th percentile) over a 5-year holding period.

According to the statistics, this or higher return was historically observed in only 10% of cases.

Moderate scenario

The money will be invested in 3 asset classes (global equities, medium-term bonds, short-term bonds) according to the Investment Structure.

This scenario reflects a moderate scenario for investment performance based on the historically observed returns of the indexes representing similar assets over the period between 01.01.2012 and 31.12.2021:

Global equities: MSCI All Country World Index annual return of +9.1%
Medium-term bonds: Bloomberg Euro-Aggregate Index annual return of +3%
Short-term bonds: Markit iBoxx EUR Eurozone (DE ES FR IT NL) 1-3 annual return of +0.30%

As the basis for calculating the investment performance, the historically observed returns of the above-mentioned period were grouped by 5 years.

Then the investment return used in this scenario was determined by selecting the median of historically observed returns (data on the 50th percentile) over a 5-year holding period.

According to the statistics, this or higher return was historically observed in 50% of cases.

Negative scenario

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

This scenario reflects a negative scenario for investment performance based on the historically observed returns of the indexes representing similar assets over the period from 01.01.2012.- 31.12.2021:

Global Equities: MSCI All Country World Index annual return of -1.8%
Medium-term Bonds: Bloomberg Euro-Aggregate Index annual return of +1.1%
Short-term Bonds: Markit iBoxx EUR Eurozone (DE ES FR IT NL) 1-3 annual return of -0,20%

As the basis for calculating of the investment performance the historically observed returns of the mentioned period were grouped by 5 years.

Then investment return used in this scenario was determined by selecting the lowest of historically observed returns over the 5 years holding period.

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.
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Schedule of payment & fees

No values generated by this calculator are guaranteed and they only serve as an illustrative example generated based on the values entered into the calculator. Savings for Child’s Future is a unit-linked life insurance service which means that the accrual of savings depends on the value of its underlying assets, which in turn can increase or decrease over time.
In case the return on investment is negative upon expiry of the agreement, you will receive the guaranteed amount, i.e. the sum of your contributions less the agreement fees. Before entering into the contract, please review the key information document, the terms and conditions of the contract and the price list at the website www.swedbank.lv. The service provider is Swedbank Life Insurance SE, which is represented in the Republic of Latvia by Swedbank Life Insurance SE Latvian branch and the insurance intermediary service is provided by the insurance agent Swedbank AS.

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.

According to the suitability questionnaire report, this service is not recommended for you. Based on the evaluation of the data provided in the questionnaire, this product is not appropriate to you. We recommend to select advised product which you can check in Suitability report before proceeding with contract conclusion.

Let’s have a talk about what’s important for you

Book a consultation with our specialist.

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.

Learn more:

documentWhat is the cost of everyday life for students?

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.
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. The personal income tax refund may be claimed only if the payer of contributions and the contract holder are one and the same person.
Flexible contributions of your choice. The minimum monthly contribution is EUR 30.
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 beneficiary of the accrued savings is the child and not the contract holder upon the maturity of the contract or if the term of the insurance contract is less than 10 years, then, pursuant to the Law on Personal Income Tax, you will not be able to claim a personal income tax refund on contributions to the insurance contract. Learn more
Possibility to change the beneficiary. If the recipient of the accrual (the beneficiary upon the maturity) is the child and not the contract holder themselves, then it will not be possible to get the personal income tax refund for the contributions made to the contract. Learn more

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:

Results of funds in insurance contracts

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.

Allocation for medium-term bonds is a low-risk investment for the period up to 10 years. Less fluctuation in value and lower return can be expected in case of this allocation. Investments are made in the euro area government and global corporate bonds with avarage maturity up to 10 years.

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.

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)	0,79% per annum of the Savings reserve	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.
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	1,9% monthly fee, shall be calculated from Monthly Risk Amount	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 01.07.2022

Effective from 01.07.2023

Statement on principal adverse impacts of investment decisions on sustainability factors

For information on how Swedbank Life Insurance integrates principal adverse impacts of its investment decisions, please refer to the Statement on principal adverse impacts of investment decisions on sustainability factors.

Investors are actively directing money to sustainable investments.

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Source: World Federation of Exchanges

Support sustainable business with your child savings

When money is invested in sustainable companies, it contributes to social and environmental well-being and responsible business.

Source: International Institute for Sustainable Developments

CO₂ Emissions
Energy usage
Natural resource usage
Waste and pollution
Climate change mitigation

Employee health & well-being
Human rights
Gender equality
Non-Discrimination
Fair pay

Business ethics
Transparency
Anti-corruption
Reporting
Responsible suppliers

Relevant!

The future is unpredictable, but it can be taken care of - by starting to save with Swedbank’s 3rd pension pillar today.

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.

A convenient way of diversifying and sustainably investing spare money, starting from 1 EUR.

Savings for Child’s Future

Do you know how much studies cost?

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

Positive scenario

Let’s have a talk about what’s important for you

Learn more:

Investment strategy:

Related documents:

Statement on principal adverse impacts of investment decisions on sustainability factors

Support sustainable business with your child savings

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