Investing for a child

If you play an important role in someone's young life – as a parent, grandparent, aunt or godfather, for instance – you’re only too happy to ensure a bright future for that child. Going to college, buying a house and other dreams and aspirations come with a price tag. By starting to invest (from early on), however, you can make sure that little one has a tidy capital sum at their disposal when they’re older. The investment-linked insurance product, KBC-Life Solutions4, is a readily accessible way to build up a capital sum for another person, such as a child who’s close to you.

• You choose your beneficiary, i.e. a child or other loved one who’ll ultimately receive the money.
• You choose the end date, which you can change at any time. Should you die prematurely, we’ll pay out the amount invested. If you don't want that amount to go straight to your beneficiary, get in touch with your branch. You also have the option of withdrawing all or part of the amount before the end date, should you need to. 
• You decide how much you invest. You can start an investment plan from as little as 10 euros a month, or you can opt for a lump-sum investment.

If you take out the unit-linkedKBC-Life Solutions4 product online, you invest in KBC Life S4 Dynamic Responsible Investing, an investment fund developed in-house by KBC Insurance and whose assets are managed by KBC Asset Management.  
 
By choosing KBC Life S4 Dynamic Responsible Investing, you are putting your money into a responsible investment fund that invests in companies and countries that embrace the ESG themes of ‘Environment’, ‘Social’ and ‘Governance’. The fund comprises a mix of shares and bonds and is managed for you by professional fund managers.  Other funds are also available under the KBC-Life Solutions4 range of products.    

The value of a fund can go up as well as down over time. The associated financial risk is borne by you in your capacity as the policyholder. 

We recommend retaining the product for at least five years in order to mitigate the chances of getting back less than originally invested. Examples illustrating a number of scenarios can be found in the key information fact sheet. 

• Market risk: this product doesn’t offer capital protection 
• Inflation risk: the bond component doesn’t provide any protection against inflation  
• Foreign exchange risk: the product also invests in securities denominated in foreign currencies 
• Credit risk: doubts about the creditworthiness of the bond issuers can reduce the value of their bonds 

You payentry charges of 2.5% and a 2% insurance tax on each deposit. The management fees, which have already been factored into the fund's net asset value, are estimated at 1.35%. These costs depend on the composition of the fund. There are no exit charges.

If you’d rather find out a bit more first or would like more information on the other funds in the range of KBC-Life Solutions4 products, feel free to get in touch with your KBC Brussels branch or KBC Brussels Live.