ING Life Star Plan

A Belgian resident between 18 and 64 years of age who is subject to personal tax in Belgium can subscribe to an ING Life Star Plan pension-related savings-based insurance policy.

The aim of a pension savings insurance policy is to build pension capital safely within the fiscal pension savings system.

The contract has a minimum term of ten years from the date it becomes effective and runs at least until the policyholder’s 65th birthday. 

 The end date is set in the insurance contract. 

The contract will automatically end prematurely if it is surrendered in full or in the event of death.

The yield consists of a guaranteed interest rate plus a potential profit share.

• A guaranteed interest rate

An individual fixed interest rate is assigned to every payment, after deduction of 3% in subscription fees. This rate applies until the end date of the contract.

At present, it is 0.50%. This may vary for future premiums. 

The financial information sheet gives the latest interest rate (the document can be found in the above section "Please read before you start saving"). 

Policyholders with an ING Life Star Plan receive an overview every year from NN Insurance Belgium nv showing the payments and the interest rates assigned.

• A potential profit share 

The profit share varies from year to year, and it may be that no profit share will be allocated.

The profit share relates to the past year and depends on the development of the economy and the results of NN Insurance Belgium nv.

• In the first year, there are no conditions for the potential profit share. 
• After that, a potential profit share is only allocated to contracts to which at least 300 euros has been paid in the past year and which have a reserve of at least 5,000 euros at the end of that year. 

The greatest risk for this product is for the insurance company to go bankrupt. However: 

• Life insurance contracts are special assets which are managed separately within the insurer’s assets. If the insurer goes bankrupt, those funds are reserved as a priority to meet commitments to the policyholders and/or beneficiaries. 
• The product is also protected by the financial services guarantee fund (Royal Decree of 14/11/2008). The protection is limited to the surrender value of the contracts and also to an amount of 100,000 euros for all protected contracts concluded by the same policyholder with NN Insurance Belgium nv.
• For any amount exceeding this limit, the policyholder assumes the risk.

• Subscription fees : 3% of every paid premium.
• Surrender fee* : 5%, decreasing daily over the last five years of the contract.

*: see the fiscal rules section

• The premium is a minimum of 25 euros per month or 300 euros per year.
• The maximum amount depends on your own choice for tax optimization. 

Since 2018, there have been two tax ceilings with different levels of tax deductibility:

• The basic ceiling is 990 euros (income year 2020, tax year 2021). Payments up to this ceiling lead to tax relief of 30% (+ municipal tax).
• The increased ceiling is 1,270 euros (income year 2020, tax year 2021). Payments up to this ceiling lead to tax relief of 25% (+ municipal tax).

ING Life Star Plan confers the right to potential tax relief on pension savings according to the conditions of the 1992 Income Tax Code and subsequent supplements.

This taxation is applicable for non-professional fiscal residents of Belgium (or of a member state of the European Economic Area) and is subject to future changes on fiscal regulations.

The tax treatment depends on the individual situation of every customer, including the need to have sufficient taxable income in order to receive tax relief.

The following general rules apply on the basis of the current tax legislation:

1. With regard to the payments:

The payments are exempt from premium tax 

The policyholder may enjoy tax relief on the premiums paid in the context of pension savings. The tax relief is calculated at a tax rate of 30% or 25% respectively (to which the municipal tax must be added).

• 30% for a payment up to the basic ceiling of 990 euros (income year 2020, tax year 2021). The maximum tax relief in that case amounts to 297 euros (+ municipal taxes).
• 25% for a payment up to the increased ceiling of 1,270 euros (income year 2020, tax year 2021). The maximum tax relief in that case amounts to 317.5 euros (+ municipal taxes).

Conditions for the increased tax ceiling of 1,270 euros in 2020:

• If you wish to contribute more than 990 euros/year, then you have to inform ING of your explicit choice.
• The choice is irrevocable and valid exclusively for the tax period specified. As a result, you will have to make the choice again each year.
• If a sum higher than 990 euros is paid in a year when no prior choice has been explicitly made, the amounts paid above 990 euros will be returned free of charge.

This potential tax relief applies to payments up to 31 December of the year in which you reach the age of 64. 

NN Insurance Belgium nv provides an annual tax certificate stating the premiums paid. 

2. With regard to outpayments from the policy:

On the policyholder’s 60th birthday or, in case the policy has been signed as from the age of 55 year, on the 10th anniversary of the policy, an anticipative levy on the pension savings of 8% is deducted in principle from the savings reserve. The earned profit share is free of taxes. 

This levy is by way of a discharge: the capital is exempt from tax at maturity.

Payments made after the anticipatory levy is applied will still be eligible for tax relief and will not be taxed when the policy matures.

• If the policy is surrendered before the anticipatory levy takes place, it is taxed as personal tax. The tax is then 33% percent plus the additional municipal tax. In the case of a bridging pension, this tax may be 8% if specific conditions are satisfied.
• In the event of death before the anticipatory levy takes place, the policy is taxed as personal tax. The tax is then 8% percent plus the additional municipal tax.

In the event of death, inheritance tax can be due.

A detailed overview of the fiscal rules is given in the financial infosheet on life insurances: ING Life Star Plan (pdf).

The tax treatment depends on the individual situation of each customer and may change later.

This can be done via ING Home’Bank or through the branches.

NN Insurance Belgium nv provides policyholders every year with an annual overview which also shows the value of the contract on 31 December of the past year.

Policyholders also receive an annual certificate (281.60) showing the payments they have made in the past year. This certificate must be kept for submission to the tax authorities if requested.

NN Insurance Belgium (formerly ING Life Belgium) is an insurance company within the NN Group, with a long history in Belgium. The NN Group is an insurance and investment management company that is listed on the stock exchange and has a strong European focus. Present in 18 countries, and with a total of around 12,000 employees, the group provides services relating to pensions, insurance, investments and also banking services (only in the Netherlands) to over 15 million customers.

• For complaints contact us online: www.ing.be/complaints, call us: +32 2 464 60 04 or send us a letter: ING Complaint Management, Cours Saint-Michel/Sint-Michielswarande 60, 1040 Brussels.
• Already been in touch with ING? Contact the Financial Disputes Ombudsman, rue Belliard 15-17, 1040 Brussels (www.ombudsfin.be) or the Insurance Ombudsman, Square de Meeûsplein 35, 1000 Brussels (www.ombudsman.as (FR)).

ING Life Star Plan is sold and offered to you (subject to acceptance by the insurer and mutual agreement) by:

• Insurer:

NN Insurance Belgium SA/NV, mortgage lender licensed by the FSMA and insurance company licensed by the NBB under the number 2550 for the Branches 1a, 2, 21, 22, 23, 25, 26. Registered office : Avenue Fonsny 38, B-1060 Brussels - RLP Brussels - VAT BE 0890.270.057 - BIC: BBRUBEBB - IBAN: BE28 3100 7627 4220

• Insurance intermediary:

ING Belgium SA/NV - Bank - Avenue Marnix/Marnixlaan 24, B-1000 Brussels - RPM/RPR Brussels - VAT: BE 0403.200.393 - BIC (SWIFT): BBRUBEBB - Account: 310-9156027-89 - IBAN: BE45 3109 1560 2789 – www.ing.be. Insurance broker registered with the FSMA under code number 0403.200.393.

ING Belgium SA/nv (article 107 Section 3 of the Special Regulations for Trading Financial Instruments and Insurance-linked Savings and Investment of ING, abbreviated to RSOI) and NN Insurance Belgium SA/nv do not provide any insurance distribution services for Insurance-linked Savings and Investment to US Persons.