- Secure Child Fund is a unit-linked life insurance service intended for those who wish to accumulate funds for their child‘s studies or the start of independent life, The service is provided by Swedbank Life Insurance SE Lithuania Branch through its representative Swedbank, AB.
- You may save a desired amount by making periodic payments until your child becomes 18 to 21 years of age.
- We recommend that you allot EUR 30 per month for your child‘s future. You can also make additional payments to increase the accumulated amount, or pay less if you have financial difficulties. In addition, there is an option of a 5% annual indexation of the periodic payment. This means that every year during the term of the Secure Child Fund Contract your payment will be increased 5%: having started from a minimum amount, you will save more with time.
- Making payments is convenient and easy: they can be debited every month on a date selected by you. The method of automatic payment against an e-invoice allows you to set the payment amount and to increase/reduce it depending on your financial situation or the amount you want to accumulate.
- The investment is covered by a guarantee. This means that, in case if the return on investment is negative upon expiry of the Contract, you will receive the guaranteed amount, i. e. the sum of your payments less the Secure Child Fund Contract fee. It is important to note that the guarantee does not apply in case of termination of the Contract prior to the end of the term (including the case of death of the child).
- Your child will be secured financially if you are no longer able to care for and look after them (including in the event of your death). In such a case the remaining amount will be paid for you by Swedbank Life Insurance SE Lithuania Branch. The sum of the remaining payments will be calculated as follows: the monthly insurance payment (maximum EUR 100) multiplied by the number of full months remaining until the end of the term.
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The State encourages this saving method and applies tax rebates for accumulative life insurance premiums. Therefore, every year you will be able to benefit from the rebate on the income tax of individuals, and recover up to 15 % of the total premiums paid.* The maximum amount of the tax premiums paid per year from which the tax payer can recover 15 % is EUR 2,000.
More information here.
* i.e. premiums according to accumulative life insurance contracts, to pension funds, associations of participants of occupational retirement funds, and/or analogous entities operating in a State of the European Economic Area.
Secure Child Fund is a unit-linked life insurance service where the investment risk is assumed by the policyholder.
Please note that the investment value of the contract may either increase or decrease depending on the actual yield of investments. The insurer does not provide guarantees of yield on investments and accumulated investment value.
The insurer will pay the guaranteed amount provided that the contract remains in effect until the end of the terms and the investment value of the contract is lower than the guaranteed amount as of the end of the term of the contract.
The information provided may not be treated as the insurer‘s recommendation to choose this service; you are responsible for your choice, therefore, prior to deciding on the entering into the unit-linked life insurance contract you should familiarise yourself with the detailed information contained in the insurance rules, descriptions of investment allocations and other information published on www.swedbank.lt.
Upon conclusion of the Secure Child Fund Contract, an investment strategy tailored to your needs and accumulation term will be selected. Normally, investment strategy at the beginning of accumulation is more risky to enable your fund to earn money. Afterwards the risk is gradually reduced to preserve the accumulated funds.
At the beginning of the Contract term more risk is assumed by investing into equities (shares). Then the investment risk is gradually reduced by transferring part of the investment to bonds. This provides more security for the accumulated amount at the end of the term.
Investment structure
Your payments will be allocated for the following investments:
- Allocation for global equities is a high-risk long-term investment. By allocating funds for this investment one may expect both higher return and greater value fluctuations. The majority of the investments are made in equities in the developed markets, with the remaining part going to equities in the developing markets. The results are more stable in the course of change of economic cycles based on the stability of developed regions and the growth potential of developing countries. Click here for more information.
- Allocation for medium-term bonds is a low-risk investment for the period of 5 to 7 years. Less fluctuation in value and lower return can be expected in case of this allocation. Investments are made in the euro area government bonds with a maturity of 5 to 7 years. This is an allocation with the unit value reflecting the average rate of return, i. e. the 5 to 7 year‘s term euro area bond index. Click here for more information.
- Allocation for short-term bonds is a low-risk investment for the period of 1 to 3 years. Less fluctuation in value and lower return can be expected in case of this allocation. Investments are made in the euro area government bonds with a maturity of 1 to 3 years. This is an allocation with the unit value reflecting the 1 to 3 year‘s term euro area bond index. Click here for more information.
The balanced lifecycle investment strategy is aimed at earning profit; in the event of loss the guaranteed amount will be paid at the end of the Contract.
Secure Child Fund is a unit-linked life insurance service where the investment risk is assumed by the policyholder.
Please note that the investment value of the contract may either increase or decrease depending on the actual yield of investments. The insurer does not provide guarantees of yield on investments and accumulated investment value.
The insurer will pay the guaranteed amount provided that the contract remains in effect until the end of the terms and the investment value of the contract is lower than the guaranteed amount as of the end of the term of the contract.
The information provided may not be treated as the insurer‘s recommendation to choose this service; you are responsible for your choice, therefore, prior to deciding on the entering into the unit-linked life insurance contract you should familiarise yourself with the detailed information contained in the insurance rules, descriptions of investment allocations and other information published on www.swedbank.lt.
Please read the following important information prior to concluding the Contract.
Secure Child Fund is a unit-linked life insurance service where the investment risk is assumed by the policyholder.
Please note that the investment value of the contract may either increase or decrease depending on the actual yield of investments. The insurer does not provide guarantees of yield on investments and accumulated investment value.
The insurer will pay the guaranteed amount provided that the contract remains in effect until the end of the terms and the investment value of the contract is lower than the guaranteed amount as of the end of the term of the contract.
The information provided may not be treated as the insurer‘s recommendation to choose this service; you are responsible for your choice, therefore, prior to deciding on the entering into the unit-linked life insurance contract you should familiarise yourself with the detailed information contained in the insurance rules, descriptions of investment allocations and other information published on www.swedbank.lt.
- Log in to your Swedbank online banking system.
- Fill in suitability questionnarie.
- Complete the application for the Secure Child Fund Contract.
- Check and confirm the data entered.
- At the time of concluding the Secure Child Fund Contract, a consent to automated payment of e-invoices will be provided. Upon selection of this payment method, monthly insurance payments will be deducted automatically.
If you have questions about concluding the Contract online, please call us on 1884. Our Consulting Centre‘s specialists will be happy to assist and advise you.
Secure Child Fund is a unit-linked life insurance service where the investment risk is assumed by the policyholder.
Please note that the investment value of the contract may either increase or decrease depending on the actual yield of investments. The insurer does not provide guarantees of yield on investments and accumulated investment value.
The insurer will pay the guaranteed amount provided that the contract remains in effect until the end of the terms and the investment value of the contract is lower than the guaranteed amount as of the end of the term of the contract.
The information provided may not be treated as the insurer‘s recommendation to choose this service; you are responsible for your choice, therefore, prior to deciding on the entering into the unit-linked life insurance contract you should familiarise yourself with the detailed information contained in the insurance rules, descriptions of investment allocations and other information published on www.swedbank.lt.
- The accumulated amount will be paid to your child upon expiry of the Secure Child Fund Contract. The child (unless the Contract states otherwise) will be paid the investment value of the Contract or the guaranteed amount, whichever is larger upon expiry of the Contract.
- Prior to expiry of the Secure Child Fund Contract, your child or you (depending on who is the beneficiary according to the Contract) will have to submit an application for the payment of the insurance indemnity. This can be done through the online banking system or by calling 1884 and agreeing on a visit to the preferred branch of Swedbank. In the latter case, please have your or your child‘s (depending on who is the beneficiary according to the Contract) personal ID document – a passport or a personal ID card.
If you have any questions or doubts concerning your insurance contract or payment of accumulated funds please call us on 1884, write to info@swedbank.lt, or visit the nearest Swedbank branch.
Please read our Procedures for the Consideration of Complaints and Responding to Applicants.
If you are not happy with our response, you can always approach the Supervision Service of the Bank of Lithuania. Address for correspondence: Žirmūnų g. 151, LT-09128 Vilnius. Detailed dispute settlement procedures are published on the website of the Bank of Lithuania.
Secure Child Fund is a unit-linked life insurance service where the investment risk is assumed by the policyholder.
Please note that the investment value of the contract may either increase or decrease depending on the actual yield of investments. The insurer does not provide guarantees of yield on investments and accumulated investment value.
The insurer will pay the guaranteed amount provided that the contract remains in effect until the end of the terms and the investment value of the contract is lower than the guaranteed amount as of the end of the term of the contract.
The information provided may not be treated as the insurer‘s recommendation to choose this service; you are responsible for your choice, therefore, prior to deciding on the entering into the unit-linked life insurance contract you should familiarise yourself with the detailed information contained in the insurance rules, descriptions of investment allocations and other information published on www.swedbank.lt.
