R-Junior premiums are deductible up to the basic limit stipulated in article 111 L.I.R. (672 EUR/person). The minimum policy term is 10 years.
Capital paid out on maturity exempt from income tax.
|Situation||Maximum annual deductible amount|
|Single without children||672 EUR|
|Single with 1 child||1344 EUR|
|Couple without children||1344 EUR|
|Couple with 1 child||2016 EUR|
|Couple with 2 children||2688 EUR|
|Couple with 3 children||3360 EUR|
|Additional child||672 EUR per child|
N.B. the total deductible amount covers all deductible insurance premiums plus interest expense on personal loans.
The table below gives an indication of the overall tax impact, depending on the term of the R-Junior policy and the marginal tax rate.
|Years||Marginal tax rate|
|10 years||+/- 1.600 EUR||+/- 2.300 EUR||+/- 2.800 EUR|
|20 years||+/- 3.200 EUR||+/- 4.600 EUR||+/- 5.600 EUR|
|25 years||+/- 4.000 EUR||+/- 5.750 EUR||+/- 7.000 EUR|
N.B. Example calculation: Total tax impact of annual premiums of €672
Examples on the basis of the INCOME TAX BRACKETS applicable as from the 2017 tax year:
Marginal tax rate 22%
- Single person with annual income of +/- 30,000 EUR
- Married couple with annual income of +/- 60,000 EUR
Marginal tax rate 32%
- Single person with annual income of +/- 39,000 EUR
- Married couple with annual income of +/- 78,000 EUR
Marginal tax rate 39%
- Single person with annual income of +/- 48,000 EUR
- Married couple with annual income of +/- 96,000 EUR
Terms of the savings plan
R-Junior covers the key aspects of security and savings. The capital is paid out to the beneficiary on the agreed date, regardless of whether the insured party is still alive or not.
R-Junior is also the right choice if you want to insure your children’s future.
In the event of death of the insured party, Raiffeisen VIE:
- Pays out the insured capital to the beneficiary
- Pays the remaining premiums until the contract expires
Note: if the insured party dies, the capital is therefore paid out twice: once on the death of the insured party and again at the term of the policy.
To set up a savings scheme for your children and grandchildren while reducing your tax burden, get in touch with a Raiffeisen advisor.
Choose your beneficiary
The R-Junior policyholder is free to choose who will benefit at the policy term or in the event of death.
- R-Junior may be a single-life or joint policy. In a joint policy, the death payment is made on the first death of the two insured parties.
- The age at the start of the policy is set with reference to the closest birthday to the date on which the policy takes effect.
- Minimum subscription period: 10 years
- Maximum age at term:
- Primary cover: 75
- Additional cover: 65 (50 for disability due to illness)
- Minimum periodical premiums: €50 per month or €600 per year,
- Premiums payable on the dates set in the agreement
- Possibility of depositing an amount of your choice/single premium payment: no
- Minimum capital at term: €8,000
- Reset option: yes
Transactions during the life of the policy
Conversions, reductions, policy loans and cash surrender are always possible, subject to the conditions and limits set out in the policy’s general terms and conditions. In the event of a reduction in the policy, the additional cover is cancelled.
We are here to answer your questions and can put you in contact with the right people depending on your requirements.