With AG Ascento Life, you can convert all or a portion of the group insurance proceeds from your AG Employee Benefits plan into a lifetime annuity.
In other words, you'll get a guaranteed stream of income payable for life, regardless of how long you live. How does it work? You simply hand over your lump-sum group insurance proceeds and in exchange, the insurance company pays you a regular annuity.
Right from the start, you'll know the size of the minimum annuity you'll collect for the rest of your life.
When you take out the contract, you'll have the option to index the annuity or transfer it to a beneficiary in the event of your death (reversionary annuity), but keep in mind that once you've selected these options, no further changes will be allowed.
It's up to you to determine the payment frequency: monthly, quarterly, semi-annually or annually.
The tax basis will be a flat rate of 3% of the relinquished lump sum.
On this page:
How is AG Ascento Life taxed?
- Premium tax
The premium to purchase a lifetime annuity will be subject to a one-time tax of 2%. However, if the annuity contract is purchased by immediately transferring the lump-sum supplementary pension proceeds, the premium will be exempt from this tax. - Income tax
If you decide to convert your group insurance proceeds into an annuity:
Lifetime annuities do not have to be declared as such. The tax basis will be a flat rate of 3% of the relinquished lump sum. This amount will be considered as investment income, subject to separate annual tax at the current rate of 30% plus municipal taxes.
What about your tax return?
Every year, AG Employee Benefits will send you Tax Statement 281.40 to help you fill out your tax return. This Statement will contain the figures to report as well as the corresponding tax codes. You can then enter these figures according to their tax codes.
To see an example of a tax statement 281.40 for pension plan proceeds: French - Dutch.
What fees do I need to take into account?
As is the case with any investment, you should factor in the following fees:
- Front-end load: none
- Exit fees: none
- Management fees: none
Legally required and contractual information
Check the legally required information for our insurance contracts!
- How does AG handle potential conflicts of interest? Visit our website in French or Dutch.
- What segmentation criteria does AG apply for acceptance, coverage extent, and premium calculation? Read the information in French or Dutch.
- Who should I contact if I want to file a complaint? Visit our website in French or Dutch.
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All of our insurance contracts are governed and construed in accordance with the laws of Belgium.