Indices and thresholds
Taxes on insurance premiums
On every premium you pay into a life insurance policy, you must pay 2 % tax. This is the so-called subscription tax. Please note: you must take the term "life insurance" literally. It must concern insurance that either insures you of a payout if you are still alive on the end date, or insures your next of kin of a benefit if you die before the end date of the contract.
If you pay in a premium of 500 euros, 10 euros in tax is therefore charged (2 % of 500 euros).
However, there are exceptions to this regime:
- On premiums for a so-called "genuine debt balance insurance" you only need to pay 1,1 % tax.
- On a life insurance policy taken out under pension savings, no insurance tax is even due.
- If you withdraw and/or transfer the accumulated capital of a life insurance policy, "the reserve", to another branch 21 or branch 23 product with the same insurer, the insurance tax is likewise not due. But if you transfer it to another insurer, this constitutes a new contract. In that case, the insurance tax must be paid again after all.
If you take out supplementary benefits for disability or illness, the subscription tax is 9,60%.
The accompanying table shows the subscription tax that applies to the premium paid by the policyholder of the personal insurance contract.
Please note: this therefore does not concern the tax on payout of the benefit (capital, annuity, or reimbursement of costs).
| Life insurance<br>Pension & death* | Tax | RIZIV | Total |
|---|---|---|---|
| Individual life insurance policies<br>(except pension savings, RIZIV** and VAPZ**) | 2% | 2% | |
| Genuine debt balance insurance | 1,1% | 1,1% | |
| Second pillar insurance<br>Group insurance<br>IPT<br>POZ<br>Company director insurance | 4,40% | 4,40% | |
| Investment insurance policies, branch 26 | 0% | 0% | |
| Health insurance policies<br>Disability insurance***<br>Hospitalization insurance | Tax | RIZIV | Total |
| Disability insurance | 9,60% | 9,60% | |
| Hospitalization\*\*\*\* | 9,60% | 10,00% | 19,60% |
\* This also applies to pure death cover (death due to illness or accident).
\*\* This means that debt balance insurance policies drawn up under the pension savings tax regime are also exempt from the subscription tax.
\*\*\* This means that the premium for the supplementary benefit taken out alongside a pension or death benefit receives its own subscription tax of 9.60%. There are 2 tax regimes (4.4% on pension and 9,60% on supplementary benefits) that apply within the same contract.
\*\*\*\* At the start of this type of contract, a (lifelong) exemption from this tax (not from the RIZIV (the national health and disability insurance institute) contribution) may apply if this concerns an individual continuation of a group policy where there is continuity of cover, and no medical acceptance applies.
Last updated: 08/09/2021. Thresholds change every year. Always ask your advisor for the figure that applies to your situation and financial year.