Beneficiary of unit-linked insurance (OP Sijoitusvakuutus)

Unit-linked insurance allows you to save for the future. When you take out a unit-linked insurance policy, you can choose the beneficiary for the due date and in the event of death. You can change the beneficiary clause on our digital services free of charge. You can also withdraw savings either partly or entirely before the end of the savings period.

The beneficiary of unit-linked insurance at the end of the savings period

When the savings period for a unit-linked insurance policy ends, the amount saved, i.e. the insurance benefit, is paid to the specified beneficiary. The beneficiary of unit-linked insurance can be a natural person or an association, for example. As the policyholder, you are yourself the most common choice of beneficiary at the end of the agreement. However, if you wish the funds included in the unit-linked insurance to be transferred to a friend or family member during your lifetime, you can select your children, next of kin or spouse as the beneficiaries, for example.

The beneficiary of endowment insurance in the event of death – endowment insurance in estate distribution

However, if you die while the agreement is in force, the insurance assets will be paid to the beneficiary of your choice in the event of your death. The beneficiary of endowment insurance in the event of your death can be a person, the death estate or, for example, an association that is significant to you, which will receive a sum corresponding to the amount of insurance assets as death benefit if you die.

With endowment insurance, you can plan your inheritance and prepare for future inheritance tax, for example. If you have endowment insurance, estate distribution does not involve processing funds saved for the insurance policy. The endowment insurance benefit is not included in the death estate’s wealth unless the beneficiary is the death estate. The beneficiaries often already receive the insurance benefit before the distribution of the estate.

In the event of your death, you can choose the same beneficiaries as at the end of the savings period with the addition of your next of kin and the death estate. Naturally, the policyholder cannot select themselves as the beneficiary in the event of their death.

Beneficiary clauses in endowment insurance

  • Policyholder: The assets in the insurance are paid to the policyholder when the policy expires. It is possible to select the policyholder as the beneficiary only at the end of the savings period. Insurance assets are always paid to the policyholder even when you withdraw assets from the unit-linked insurance policy.
  • Children: The amount saved is divided equally between the policyholder’s children. Children refers to biological and officially adopted children. If a child of the insured person dies, the child’s offspring become substitute beneficiaries. If you wish the beneficiary to be a foster child, they must be added as a named beneficiary.
  • Grandchildren: Grandchildren refers to biological and officially adopted grandchildren. When you choose grandchildren as beneficiaries, the saved amount will be distributed among the grandchildren. The heirs of a dead grandchild have no right of substitution, and assets will instead be distributed among the other grandchildren.
  • Next of kin: The spouse receives half of the insurance benefit, and the children receive the other half. If there is no spouse, the children receive the insurance benefit in its entirety and vice versa. If there is no spouse or children, the benefit will be paid to the heirs, as dictated by the Code of Inheritance. It is possible to select the next of kin as the beneficiaries only in the event of death.
  • Spouse: The amount saved is paid to the person with whom the policyholder is, at the end of the savings period, or was, at the time of their death, married or in a registered partnership. If you wish the beneficiary to be a common-law spouse, they must be added as the named beneficiary.
  • Spouse and children: Half the saved amount is paid to the policyholder’s spouse or registered partner, and the other half is divided equally between the policyholder’s children. If a child of the insured person dies, the child’s offspring become substitute beneficiaries. If you wish the beneficiary to be a common-law spouse, they must be added as the named beneficiary. 
  • Named beneficiary / Named beneficiaries: You can add a person, multiple persons, or an association or foundation as a beneficiary to which the saved amount will be paid. If you name several beneficiaries, the saved amount will be divided equally between the beneficiaries unless otherwise dictated.
  • Death estate: When the death estate is the beneficiary, compensation in the case of death is paid to the insured death estate. The death benefit paid to the death estate is part of the estate's assets, and it is distributed as part of the decedent's inheritance, either to the legal heirs in accordance with the Finnish Code of Inheritance or to the beneficiaries under a will.

Changing the beneficiary of unit-linked insurance 

Life situations can change, and the beneficiary of unit-linked insurance may require changing. The beneficiary can only be changed with a written notification. Changing the beneficiary in our digital services is free of charge.

It is important to periodically check that the beneficiary choice is correct, and that the beneficiary’s details are up to date. You may wish to change the beneficiaries when you marry or divorce, or when a child is born in your family, for example.

You can change the beneficiary:

  • on op.fi: Login - Investments - Saving through insurance - Policy covers and beneficiaries - Compensation in the event of death or Amount saved - Change beneficiaries - Continue - Confirm with a key code list or mobile key - Confirm
  • on OP-mobile: Login - Investments - Saving through insurance - Policy covers and beneficiaries - Compensation in case of death or Amount saved - Change beneficiaries - Continue - Confirm with a key code list or mobile key - Confirm

How does the beneficiary choice affect the taxation of the amount compensated?

The beneficiary clause affects the taxation of the amount compensated under unit-linked insurance.

If you select yourself as the beneficiary, the capital is not taxed, but returns are taxed as capital income. At the agreed time of expiry of the agreement, if the beneficiaries are next of kin referred to in the Income Tax Act, capital is taxed as gift tax, and returns are taxed as capital income tax. For others, the compensation is taxed entirely as capital income. For next of kin, compensation in the event of death is taxed as inheritance tax and as capital income for others. If the insurance benefit is paid through a death estate, it is subject to inheritance tax for its recipients.

What is the difference between the beneficiary in endowment insurance and in life insurance?

The amount compensated under endowment insurance, i.e. unit-linked insurance, can be paid to the beneficiary either at the expiry of the agreement or in the event of death. For unit-linked insurance, the beneficiaries are selected for both events. In life insurance, the beneficiary receives the life insurance payout only in the event of the insured person's death.

Attachments required to claim the death benefit

If the policyholder dies during the contract, the death benefit is paid to the beneficiaries. The insurance company is notified of the policyholder's death automatically by the Population Information System, after which we will send you instructions on how to claim the death benefit for the address of the policyholder's death estate. 

Before  the benefit can be paid, the beneficiaries must confirm their identity.  The easiest way to do this is with your online banking user identifiers at op.fi. To identify yourself, you will need the policy code of the insurance. The code is included in the letter we have sent you.

Depending on their situation, beneficiaries are required to submit the following attachments:

  • Report on family relationships of the insured person if the beneficiaries are the next of kin or children.
  • Report on family relationships of the insured person and their children if the beneficiaries are the grandchildren.
  • Last will and testament if one is available, certificates of the service and acceptance of the last will and testament, and  the estate inventory deed. If the beneficiary is a death estate, the report on family relationships must be appended to the estate inventory deed.
  • Extract from the population register proving the family relationship if the beneficiary is a next of kin.
  • If the beneficiary is a corporation or association, an extract from the trade register, register associations, register of foundations, or their equivalent.

The easiest way to deliver attachments is by messaging us through the op.fi service. Select Insurance message, followed by Saving through insurance, life and pension insurance policies as the subject.

You can also deliver the attachments by mail to the mailing address indicated in the cover letter or to the nearest OP cooperative bank. 

The estimated processing time is 2–4 weeks.

OP Unit-linked Insurance (OP Sijoitusvakuutus)

The insurance is issued by OP Life Assurance Company Ltd, with OP cooperative banks acting as its agents.

The information about taxation is based on tax legislation valid as of 1 January 2023. Taxation of insurance is subject to change and complies with the tax legislation in force at any given time.