Supplementary death benefit

A financial helping hand

What if you were to pass away tomorrow? Could your loved ones maintain a comfortable standard of living? And what about your business?

Additional cover can be useful to give your loved ones a financial helping hand in the event of your death. You can arrange this cover without taking out another insurance policy, simply by adding a supplementary benefit to the pension plan of your choice, such as:

• a PLCI, which is a branch 21 personal pension plan for self-employed individuals, whether or not they’re running a company
• a CPTI, which is a branch 21 pension plan for self-employed individuals who don’t run a company 
• an EIP, which is a branch 21 or 23 insurance-based company pension plan for self-employed individuals who run a company

A fixed minimum lump sum*

The beneficiary receives an amount that is at least equal to the fixed minimum death benefit.

Once the reserve built up in your pension has reached the minimum death benefit amount, you stop paying premiums. Only the difference between the reserve and the death benefit is insured.

For example: your loved ones receive either the defined death benefit of €30,000 or the reserve built up in your pension. So even if the reserve is only €10,000 at the time of your death, they will still receive €30,000. 

Decreasing minimum lump sum**

The supplementary benefit follows the same principle as an insurance policy covering the remaining balance of a loan: the lump sum benefit decreases over time. In the event of your death, the beneficiary receives either the remaining death benefit or the reserve you have built up in your pension, whichever is higher.

As soon as the built-up reserve is equal to the minimum lump sum, you stop paying premiums.

For example: at the time of your death, you owe €27,000 and you have a built-up reserve of €10,000. Your debt will be settled with the €10,000 from your reserve and an additional €17,000 covered by the death benefit lump sum.

Fixed supplementary lump sum***

In the event of your death, the beneficiary receives the pension reserve you have built up plus the death benefit specified in your policy.

The premium for this supplementary benefit is calculated based on the lump sum you select.

For example: your loved ones receive the €30,000 lump sum specified in your policy in addition to the €10,000 euros you had saved up to your death.

Decreasing supplementary lump sum**

The supplementary benefit follows the same principle as an insurance policy covering the remaining balance of a loan: the initially insured lump sum decreases over time. The balance of your loan is covered by the minimum death benefit, which decreases as you repay your loan. In the event of your death, the balance of the loan is fully repaid with the death benefit lump sum, and your beneficiary receives the pension reserve you have built up.

For example: at the time of your death, you owe €27,000 and you have a built-up reserve of €10,000. The total debt of €27,000 is covered by your death benefit lump sum. The reserve of €10,000 is paid out to your beneficiary.

Good to know

• This benefit is subject to certain medical formalities, unless you only opt for cover in the event of accidental death.
• The supplementary benefit ends automatically when your insurance-based pension plan expires.

Taxation

• A tax of 4.4% applies to premiums relating to supplementary death benefit in an EIP or CPTI plan. No tax is payable in a PLCI or INAMI plan.
• Inheritance tax applies to the death benefit lump sum.

More information

Please read the standard terms and conditions and information sheets of our insurance-based pension plans before taking out a policy.

• EIP branch 21 – Standard terms and conditions
• EIP branch 21 – Information sheet
• EIP branch 23 – Standard terms and conditions
• EIP branch 23 – Information sheet
• PLCI – Standard terms and conditions
• PLCI – Information sheet
• INAMI plan – Standard terms and conditions
• INAMI plan – Information sheet
• CPTI – Standard terms and conditions
• CPTI – Information sheet

Any concerns?

Complaints can be made to BNP Paribas Fortis SA, Complaints Department (JQABD), Montagne du Parc 3, 1000 Brussels (tel. 02 228 72 18, gestiondesplaintes@bnpparibasfortis.com), or via the online form available on www.bnpparibasfortis.be > Suggestions or complaints > online complaints form.

If you’re not happy with the proposed solution, you can send your complaint by post to the Insurance Ombudsman, Square de Meeûs 35, 1000 Brussels – BCE 884.072.054 – Tel: 02 547 58 71, www.ombudsman-insurance.be - info@ombudsmaninsurance.be

Legal information

Supplementary death benefit cover is an optional death benefit add-on that runs for the duration of the insurance policy to which it is added.

The PLCI personal pension plan for self-employed individuals is a Belgian-law branch 21 life insurance policy distributed by BNP Paribas Fortis. The policy runs for an agreed period.

The CPTI personal pension plan for self-employed individuals is a Belgian-law branch 21 life insurance policy distributed by BNP Paribas Fortis.

The EIP company pension plan is a Belgian-law branch 21 or 23 insurance product distributed by BNP Paribas Fortis. The policy runs for an agreed period.

AG Insurance SA/nv (abbreviated to AG) – 53 Boulevard Emile Jacqmain, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0404.494.849 – https://www.aginsurance.be - info@aginsurance.be. Accredited insurance company licenced under code number 0079, under the supervision of the National Bank of Belgium, 14 Boulevard de Berlaimont, B-1000 Brussels.

Intermediary: BNP Paribas Fortis SA/nv – 3 Montagne du Parc, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0403.199.702, registered with the FSMA, 12-14 Rue du Congrès, B-1000 Brussels, under code number 025879 and acting as a contractually appointed insurance agent on behalf of AG Insurance SA/nv. BNP Paribas Fortis SA/nv holds a stake of more than 10% in AG Insurance SA/nv.