Glossary
Endowment Insurance (KF)
An insurance-based savings wrapper with the same type of flat-rate taxation as an ISK. The difference lies in ownership and the option to name a beneficiary.
What it is
Savings through an insurance wrapper
An endowment insurance is technically an insurance policy, not a regular account. The assets are formally owned by the insurance company, usually a bank, but you decide how they are invested and can use the capital as your own. Like an ISK, holdings are taxed at a flat rate based on the account's value, regardless of whether you buy, sell or withdraw.
- Named beneficiary
- You can name who receives the assets on death, which makes an endowment insurance a common choice for estate planning.
- No trade reporting
- Just like an ISK, you do not need to report individual purchases, sales or dividends. The tax is flat-rate and pre-filled in your tax return.
- Available without a Swedish personal number
- An endowment insurance can in some cases be opened by people without a Swedish personal number, making it an alternative for those who cannot open an ISK.
In practice
Endowment insurance versus ISK
From a tax perspective, an endowment insurance works almost identically to an ISK. Both are taxed at a flat rate regardless of withdrawals. The main difference is ownership: you own an ISK directly, while an endowment insurance is technically owned by the insurance company. That makes it more flexible for inheritance and gifts, but also means you lack the direct ownership and voting rights that come with an ISK.
“The same simplicity as an ISK, with the option to decide who inherits the capital.”
Frequently asked questions about endowment insurance
Related concepts
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