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
Information about the investment product:
This product incorporates ESG factors that allow it to make a positive impact on the environment and/or society and to limit negative impacts on the environment and/or society, through an appropriate selection of investments. Information on these ESG factors is available here. To find out more about AG's approach to sustainable and responsible investing, go to ag.be/investing/sustainability.
At the bottom of this page, in the legally required and contractual information section, you'll find the Sustainability Fact Sheet for the various funds available for this product as well as the corresponding annual report.
Information on insurance advice:
How does AG incorporate sustainability risks?
What is sustainability risk? This is the risk that the value of the investment will decrease if an adverse ESG event or condition should occur. For example, global warming and its potential to trigger more natural disasters. Such events can have a major impact on certain companies, forcing them to make exceptional policy decisions. This can have an impact on investment performance.
AG has developed life insurance solutions that take sustainability risks into account. In addition, as part of our AG Ascento service, AG also provides insurance advice for AG products only. This means that sustainability risks are automatically incorporated in the insurance advice you receive. At the current time, sustainability risks have not been tested with regard to your personal investment situation. Due to a lack of data, we are unable to assess the likely impact of these sustainability risks on the performance of life insurance contracts offered via AG Ascento.
Sustainability risks are also incorporated as part of AG's remuneration policy. More information can be found here.
How does AG take adverse impacts on sustainability factors into account?
Statement on Principal Adverse Impacts of investment decisions on sustainability factors
For all of its products, AG's investment policy takes into account the most significant adverse impacts that its investment decisions may have on sustainability factors. When we give you advice on AG Ascento products, you have a minimum guarantee that these adverse effects have been taken into account in the products offered to you.
In addition, in order to provide you with individually-tailored advice, we enquire about your needs and your personal situation, including your preferences regarding adverse impacts on sustainability factors. Your answers will have a direct impact on the advice you get from AG.
This contract is covered by the Guarantee Fund on the basis of the protection regime applicable to Branch 21 products.
If AG Insurance becomes insolvent, this Fund will pay out a maximum of EUR 100,000 per policyholder and per insurance company. For higher
amounts, only the first EUR 100,000 will be covered. This means the saver risks losing the remaining balance, in part or in full.
Surrender of capital means that no surrender is possible during the term of the contract and that, in the event of the death of the annuitant, the contract terminates without any refund of premium.
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.
Please read the general terms and conditions before subscribing. This document is available upon request.
All of our insurance contracts are governed and construed in accordance with the laws of Belgium.