Unit-linked insurance and insurance-based investment products

FAQ Insurance saving and unit-linked insurance policies

What is insurance saving and how does it differ from traditional savings?

Insurance saving is a type of investment intended for long-term investors. Insurance saving differs from traditional savings in that you can invest in several investment objects within one policy and switch investment objects within that policy without having to pay tax on any capital gains. This allows you to compound your investments, as the gains earned on your investment add to your investment total and can earn further gains, as with compound interest.

Would it be worthwhile to take out a unit-linked insurance policy?

Long-term investment is always worthwhile, as it secures your personal finances and can help you attain your dreams in the future. 

A unit-linked insurance policy may be suitable for you if: 

• you wish to invest for the long term and take advantage of the compound interest effect, or
• you only wish to invest in the investment baskets available for unit-linked insurance policies, or 
• you wish to be able to switch investment objects without immediate tax impact, or 
• you are interested in endowment insurance as a tool for inheritance planning.

If you only intend to invest in the short term or only in one investment fund, for instance, and you do not anticipate switching investment objects actively, or if arrangements for transferring assets to the next generation are not an issue for you, then unit-linked insurance is not necessarily for you.

What unit-linked insurance products does Nordea have?

We have two unit-linked insurance products to choose from:

1. Nordea VisionOpens new window endowment insurance is a flexible solution for long-term savings and investment. Endowment insurance is particularly well suited for inheritance planning and transfer of assets to your next of kin.
2. Nordea CapitalOpens new window is a unit-linked insurance product, but there is no insured person on the policy. Nordea Capital is suitable for long-term savings and investment, for instance with retirement or a large-scale dream project in mind. It is also well suited to saving on behalf of a child.

When you want a quick and easy start to investing and do not need investment advice, you can simply set up a Nordea Capital agreement yourself in Nordea Mobile or in Nordea Netbank. 

Is unit-linked insurance suitable for children?

Unit-linked insurance absolutely is suitable for children, because it is intended for long-term savings. By setting funds aside with regular inputs into a unit-linked insurance policy, you can build up a nice nest egg for your child’s future needs. It is easy to transfer funds to a unit-linked insurance policy, where they will be allocated to pre-selected investment objects; it is thus easy for grandparents or godparents, for instance, to contribute to a child’s savings in this way.

Children get a 50% discount on unit-linked insurance policy management fees for savings up to 100,000 euros. This discounted price is valid until you turn 30.

Read more about setting up savings for your child.Opens new window

What is an investment basket?

An investment basket is an investment portfolio determined by the insurance company. Investments in an investment basket can only be made within a unit-linked insurance policy. An investment basket is not an investment fund; it is a portfolio containing investments in a variety of instruments, such as investment funds, shares, government bonds and corporate bonds. Investment baskets are governed by their own rules.

Investment baskets offered by Nordea Life Insurance include the Global Baskets, the Granite Portfolio and the Equity Baskets. Read more about all our investment baskets in our online serviceOpens new window (only in Finnish).

Can I withdraw money from a unit-linked insurance policy?

A unit-linked insurance policy adapts itself readily and flexibly to your life situations. Change is inevitable, and at some point, it may become necessary to withdraw funds from your savings. 

You can withdraw funds easily in the Insurance serviceOpens new window. In this service, you can manage your insurance policies anywhere and at any time, with the online banking IDs of any bank. When you withdraw funds, the percentage of your withdrawal that is considered to be investment gains will be subject to capital gains tax, and we will withhold it on your behalf if you are a private customer. We may also charge a fee for the withdrawal, if so specified in the terms and conditions of your unit-linked insurance policy.

If you are considering a withdrawal because of market fluctuations, you can protect your assets by transferring them into a low-risk Insurance Account within your existing policy. Then you will not have to withdraw any funds, and you can continue investing without the tax liability that you will incur if you withdraw funds.