Insurance-based investment with the Junior Future Plan

With this insurance-based investment plan for children, your money is in good hands. You can count on the many years of experience and great expertise of our insurance partner AG. This gives you peace of mind.

You decide how to pay the annual premium, either as a single payment or in instalments by standing order. You can start saving for your children or grandchildren from as little as €30 per month. You can also adjust your payments at any time, stop them for a while or make an additional payment.

Are you worried that your children or grandchildren won’t use this money as you might wish? You can also set up the insurance-based investment plan in your name and designate the child as the beneficiary. This way, you retain the ability to change the beneficiary.

Branch 21 insurance-based savings offer a guaranteed interest rate and capital protection. The interest on each payment remains valid for the entire term of the policy, and at maturity you receive the whole amount accumulated after the deduction of fees and taxes. In addition to the interest, you may receive an annual profit-sharing payment. This is the "Accumulation" part of the plan.

Branch 23 investments are linked to one or more funds that invest mainly in shares and bonds, but also in real estate and alternative investments. This gives you a chance of higher returns, but you don’t benefit from the guaranteed interest and capital protection as you do with branch 21. However, thanks to the "Life Cycle" system (see below), the risk of capital losses remains limited.

You decide how much you want to invest in each branch, taking into account your investor profile and risk tolerance. Do you want to invest 70% in branch 21 and 30% in branch 23? Or 50% in each branch? The choice is yours, and you can review the distribution between branch 21 and branch 23 at any point during the policy.

The table below gives an overview of the gross overall return (guaranteed interest rate + profit sharing)* for the "Accumulation" part of the Junior Future Plan in the last five years. For 2023, the return was 2.50% for net contributions and 2.00% for the rest of the accumulated savings.

The guaranteed interest rate in branch 21 is currently 2.00% (rate applicable since 1 April 2023) on net contributions.

Annual profit-sharing payments are not guaranteed, may vary from year to year and depend on AG’s results and on the economic situation. AG is not legally or contractually obliged to make a profit-sharing payment. If granted, it becomes an integral part of the accumulated savings and accrues interest at the applicable guaranteed rate.

* The gross overall return does not take into account fees and taxes. Past performance is no guarantee of future results. For plans with an interest rate higher than the gross overall return, the gross return is equal to the guaranteed interest rate.

The branch 23 part is based on two funds: a starter fund and a closing fund. As long as the remaining term of your plan is more than 10 years, you invest in the starter fund.

Ten years before the plan end date, your branch 23 investments are automatically transferred to the closing fund. This fund consists of more defensive investments, with the aim of protecting the capital accumulated so far. We call this the "Life Cycle" protection system: during the last 10 years of your branch 23 plan, you invest in the closing fund, in which the proportion of equities decreases and the proportion of bonds increases. This reduces the risk associated with your portfolio.

The beneficiary(ies) will receive the branch 21 accumulated savings – including any profit-sharing payments – and the value of all equities in branch 23. However, inheritance tax may be due on the amount paid out.

To ensure that its products are responsible, AG implements various strategies such as:

• factoring in environmental, social and governance matters (using ESG risk scores, among others)
• excluding controversial activities (tobacco, arms, coal, unconventional energy sources such as tar sands and shale gas and oil etc.)
• excluding companies that do not respect the principles of the United Nations Global Compact
• using a "best-in-class" approach
• taking an active ownership approach

This product has environmental and social responsibility characteristics but does not have a sustainable investment objective as such. You can find more information on AG's approach to investing sustainably and responsibly as applied to its branch 21 products.

• Front-end fees: 3.5% on each net premium paid. As soon as you have invested €25,000, you only pay a front-end fee of 3% on this payment and on all subsequent payments. In any case, in the fifth, fourth and third years before the end of the policy, front-end fees are reduced by 0.5 points per year. In the penultimate and final year, there are no longer any front-end fees to pay.
• Exit fees: none at maturity or in the event of the policyholder’s death.
• Management fees: none for the branch 21 "Accumulation" part. For the branch 23 "Capital Plus" part, management fees are automatically included in the unit values. You can find the applicable rate in the fund management regulations.

• Redemption fee: no redemption fees are levied during the month in which the beneficiary child turns 12 or once the child has turned 18. In the event of redemption at any other time, a fee of 5% of the redemption value is payable. In any event, in the last 5 years before the end of the plan, the redemption fee decreases by 1 point per year.
• Special redemption fee (only for branch 21): in the event of redemption during the first 8 years of the plan, a financial adjustment may be applied. The redemption value is then adjusted by a factor that reflects changes in market interest rates.
• Transfer fees from branch 21 to branch 23 or vice versa: free of charge twice per year, after which a fee of 1% of the transferred value is charged.

Insurance tax: 2% on premiums paid

Withholding tax: if capital is withdrawn during the first 8 years, you pay a 30% withholding tax for branch 21. For branch 23, there is no withholding tax.

If you have questions about taxation, contact your branch or advisor.

• Capital protection and interest: branch 21 insurance-based investments offer a guaranteed interest rate and capital protection. This means you know exactly what your investment will return at the end of the policy.
• Non-guaranteed profit sharing: if you receive little or no profit-sharing payments, the capital paid out after the deduction of fees and taxes may be lower than the total amount invested.
• Guarantee fund: branch 21 products are covered by the Belgian deposit protection system. The guarantee protects you in the event that AG becomes insolvent and currently amounts to a maximum of €100,000 per insured person and per insurance company. Above that limit, policyholders bear the risk themselves.
• Inflation risk: an increase in inflation leads to lower real returns for all savers and investors. The risk of a negative real interest rate (nominal interest rate adjusted for inflation) rises as inflation increases.

• Insurer's insolvency: the assets of the fund linked to your policy are managed independently of AG's assets. In the event that AG becomes insolvent, its assets will be used firstly to meet the commitments made to you, other policyholders and beneficiaries.
• Market risk: the unit value depends on the performance of the underlying assets and of the markets. You bear the financial risk yourself. When capital is paid out to the beneficiary, the unit value may be higher or lower than the value that was applicable when you paid the premium. You should therefore keep in mind that you may lose some or all of the capital invested.
• Liquidity risk: in exceptional circumstances, it may not be possible to trade fund units in the market for a while.
• Risks related to fund management: funds are exposed to different risks that vary depending on their investment objective and policy and those of any underlying funds. To achieve their investment objectives, the managers of each fund invest in various asset classes and types of assets. The ratio depends on market conditions and the fund's policy. Despite the expertise of the specialists concerned, there is a risk that the investments will not yield the expected results.

Read the following documents before setting up a plan.

• Junior Future Plan – Standard terms and conditions
• Key information document
• Information sheet – Environmental and/or social characteristics
• Junior Future Plan – Proposed investment funds

Other useful information

• Useful information about the Junior Future Plan
• Branch 21 savings insurance – Knowledge sheet
• Branch 23 investment insurance without capital protection – Knowledge sheet

Junior Future Plan is a Belgian-law branch 21 and 23 insurance-based investment plan from AG SA, distributed by BNP Paribas Fortis. This policy is taken out for an agreed term.

AG Insurance SA/nv – 53 Boulevard Emile Jacqmain, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0404.494.849 – http://www.aginsurance.be/. Accredited insurance company licenced under code number 0079, under the supervision of the National Bank of Belgium, 14 Boulevard de Berlaimont, B-1000 Brussels.

Intermediary: BNP Paribas Fortis SA/nv – 3 Montagne du Parc, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0403.199.702, registered with the FSMA, 12-14 Rue du Congrès, B-1000 Brussels, under code number 025879 and acting as a contractually appointed insurance agent on behalf of AG Insurance SA/nv. BNP Paribas Fortis SA/nv holds a stake of more than 10% in AG Insurance SA/nv.

If you have any questions, you can contact your advisor in the first instance or consult Article 21 of the standard banking terms and conditions.

Complaints can be sent to BNP Paribas Fortis SA, Complaints Department, Montagne du Parc 3, 1000 Brussels, or via the online form or to AG Insurance SA, Complaints Department, bd É. Jacqmain 53, 1000 Brussels, by phone on 02 664 02 00 or by email to customercomplaints@aginsurance.be.

If you’re not happy with the solution proposed by BNP Paribas Fortis or AG, you can send your complaint to the Insurance Ombudsman by email to info@ombudsman-insurance.be, by post to Square de Meeûs 35, 1000 Brussels, or via their website (www.ombudsman-insurance.be).