You have just started to work as a self-employed person in a (para)medical profession. It is not easy to save, but you still want your savings to yield a nice return. This will not be possible with a savings account, because in most cases there is not even an interest rate. More than ever, a branch 23 solution is an interesting way to invest part of your savings. Let us explain why.
- Branch 23 insurance is life insurance whose return depends on the performance of one or more underlying funds. As equities always pay more in the long term than savings accounts or guaranteed return products (branch 21), branch 23 is an interesting option.
- Your insurance broker will work with you to establish your investor profile. Then he or she will propose a branch 23 solution which corresponds to your profile and the risk you are willing to take. Branch 23 insurance does not offer a capital guarantee, which means that as an investor, you are taking a certain risk. For some funds this risk is limited, and for others it is greater. This is expressed by the risk category of the fund, which ranges from 1 to 7. For category 1 the risk is very low, while category 7 represents the highest risk. The fact that a fund is already a diversified investment in itself limits the investment risk somewhat. Mixed funds (where you invest in different asset categories such as equities, bonds, cash, etc.) certainly involve a lower risk. Here you will find even more tips on how to invest safely in branch 23.
- Branch 23 insurance is not subject to tax on securities accounts.
- Another important advantage of branch 23 products is that you do not pay withholding tax on the yield (unless the product provides a guaranteed yield, in which case withholding tax is due under certain conditions).
- A branch 23 insurance policy is useful in estate planning.
Discover the branch 23 options at NN. You will also find more information on our website regarding the strategies of the funds which you may invest in, their risk categories, asset allocation, past results, etc. You will also find the management regulations, where more explanations are given on fund fees, projected returns, minimum recommended duration, investment policy, etc. You can also ask your broker for more information. He or she will be happy to answer any questions you may have.