KBC Insurance to raise interest rate on guaranteed-interest life insurance product, KBC¹ Life Experience 3Y and 8Y, on 3 February.
1 When reference is made to KBC Life Experience, it is also understood to mean CBC Life Experience.
KBC Insurance is set to raise the interest rate on KBC Life Experience on 3 February 2025:
Term | Int. rate as from 03/02 | Current interest rate |
3 years | 2.00% | 1.80% |
8 years | 2.50% | 2.20% |
KBC Insurance (still) does not charge any management fees for KBC Life Experience, regardless of its term.
KBC Life Experience is aimed at customers who can do without their money for eight years, even if they initially opt for a shorter term. They can choose from a number of different terms (1, 3, 5 or 8 years) and no limit applies to how much they can reinvest within the same contract. What’s more, the insurance tax of 2% has to be paid just once. Once class-21 reserves have been held for eight years, no withholding tax is payable when a withdrawal is made.
KBC Life Experience follows KBC's responsible investing policy and has been awarded the Towards Sustainability label.
What is KBC Life Experience?
KBC Life Experience is an insurance product that offers various investment options and a rate of interest1 that is guaranteed for a certain period.
KBC Insurance offers the following investment options:
- Life Class 21 1Y at 1.60% that is guaranteed for a period of one year.
- Life Class 21 3Y at 2.00% that is guaranteed for a period of three years.
- Life Class 21 5Y at 2.00% that is guaranteed for a period of five years.
- Life Class 21 8Y at 2.50% that is guaranteed for a period of eight years.
Potential to earn a profit share
If the economic situation and KBC Insurance’s earnings allow, the income from the class-21 investment options under KBC Life Experience may be supplemented annually with a variable profit share, as well as by a growth bonus2 in the first calendar year after a deposit has been made. No profit share or growth bonus will be allocated to the reserve of Life Class 21 1Y.
Tax treatment and rates
Insurance tax on new deposits | 2% |
Entry charges on net premium (after insurance tax) |
|
Management fees on reserve | None |
Exit charges if money withdrawn early | If money is withdrawn before an investment option ends, the reserve may be recalculated based on its lower market value at the time of withdrawal. This recalculation does not exceed 5% when withdrawals are made after eight years. |
Withholding tax | None after the contract has run for eight years None in the event the death benefit is paid 30% on a notional return of 4.75% if money is withdrawn within the first eight years of the contract |
Risks
You are exposed to the risk that the insurer might be unable to fulfil its obligations with respect to the product. You could lose all of the capital you invested. KBC Life Experience is covered by the Belgian deposit-protection scheme for guaranteed-interest life insurance. The scheme is triggered if it is established that KBC Insurance has defaulted. The protection currently amounts to 100 000 euros per policyholder for all reserves that are held with KBC Insurance under protected guaranteed-interest life insurance contracts. The assets that the insurance company sets aside in order to be in a position to honour the obligations directly arising from guaranteed-interest life insurance (class 21) products and capitalisation transactions (class 26) constitute separate funds in the insurance company's books. Should the insurer go bankrupt, these special funds are – as a matter of priority – reserved so that the commitments towards the policyholders and/or the beneficiaries can be fulfilled.
Additional information
More detailed information on this product, the relevant terms and conditions, and the attendant risks can be found in the product fact sheet and the key information document. The customer should read these documents carefully before signing up to this insurance product.
KBC Life Experience – Life Class 21 1Y
KBC Life Experience – Life Class 21 3Y
KBC Life Experience – Life Class 21 5Y
KBC Life Experience – Life Class 21 8Y
KBC Life Experience is a guaranteed-interest life insurance (class 21) product in which the insurer bears the investment risk.
This product is governed by the laws of Belgium.
The insurance is open-ended and the benefit is paid upon the death of the insured.
KBC Life Experience is a product of KBC Insurance NV – Professor Roger Van Overstraetenplein 2 – 3000 Leuven – Belgium. VAT BE 0403.552.563 – RLP Leuven – IBAN BE43 7300 0420 0601 – BIC KREDBEBB. Company licensed by the National Bank of Belgium, de Berlaimontlaan 14, 1000 Brussels, Belgium, for all classes of insurance under code 0014 (Royal Decree of 4 July 1979, Belgian Official Gazette of 14 July 1979). Member of the KBC group
Complaints
The intermediary is the first point of contact for any complaints. If no agreement can be reached, the customer can contact KBC Complaints Management by post at Brusselsesteenweg 100, 3000 Leuven, by e-mail at complaints@kbc.be, by telephone on 016 43 25 94 and by fax on 016 86 30 38. If the customer cannot find a suitable solution, they can contact the Belgian insurance industry’s ombudsman service: Ombudsman van de Verzekeringen, de Meeûssquare 35, 1000 Brussels, info@ombudsman-insurance.be, www.ombudsman-insurance.be. This does not affect the customer’s legal rights.
1 This interest is guaranteed on deposits (after the applicable charges and taxes have been deducted).
2 The growth bonus is an additional profit share in a certain calendar year and applies solely to new deposits made in that calendar year.