Endowment insurance

Last updated: 2021-06-21

Endowment insurance is a form of investment made with a life insurance company.

It is possible to save with lump sums or with regular deposits. The savings period for endowment insurance is tied to a certain period of time, often five or longer, and withdrawals are often not allowed during the first few years. During the savings period, a fee is charged for withdrawals, so-called “repurchases”.

The main reason why endowment insurance is chosen is because of the more favorable taxation due to the fact that the taxation takes place according to the law on income tax on pension funds. This means that instead of being taxed with traditional capital gains taxation, capital insurance is taxed with a standard rate of return tax.

It is common for capital insurance to be used for pension savings.