Repayment cover

You can add repayment cover to your ITP 1 Retirement pension, or to your ITPK if you have ITP2. If you have repayment cover, your family will receive part of the pension capital remaining in your pension when you die.

How repayment cover works

  • If you die before you have begun to draw your retirement pension, repayment cover is paid to your survivors for 5 years. It is also possible to choose a payment term of between 5 and 20 years.
  • If you die once you have started drawing your pension, your survivors receive the payments you would otherwise have received, until the pension has been paid for 20 years in total, as a maximum.
  • The amount paid out depends on how much you have saved in your ITP 1 Retirement pension or ITPK.

You can add repayment cover to your ITP 1 Retirement pension from age 25 onwards, and to your ITPK from age 28 onwards. Repayment cover is paid out by the company where you have your ITP 1 Retirement pension or ITPK.

How to add or remove repayment cover

Contact Collectum if you would like to add or remove repayment cover. If you would like to remove repayment cover after you have started drawing your pension, please contact us instead.

Who receives the money

  • Firstly, your spouse or registered partner, or cohabitant.
  • Secondly your children, irrespective of their age.

YOU CAN CHOOSE YOUR DESIGNATED BENEFICIARIES

You may write a special beneficiary clause if you wish and decide who will benefit from your repayment cover yourself. You can find the necessary form on Collectum.se.

How much does repayment cover cost?

Repayment cover doesn't cost anything, but your own ITP 1 Retirement pension and ITPK will be lower. This is because you do not receive what is known as inheritance gains, when you have repayment cover.

Inheritance gains are when that the remaining funds left in a pension insurance are shared between all the people who are still alive and who have the same type of insurance, when a person dies.

If you do not have repayment cover, you receive inheritance gains which means that your own pension is higher.

Pension difference — with and without repayment cover

If you are between 55 and 65 and have a pension where you will receive payments for the rest of your life:

  • Your monthly pension will increase by approximately 10 per cent if you remove the repayment cover.
  • Your monthly pension will decrease by approximately 10 per cent if you add a repayment cover.

EXAMPLE — AMANDA WANTS TO REMOVE HER REPAYMENT COVER

expers4.svgAmanda, age 64, feels that her family will manage without her ITPK if she dies. As a result, she wants to remove the repayment cover. Her ITPK is SEK 900 per month for the rest of her life. Her ITPK without repayment cover would be:
SEK 900 x 1.10 = SEK 990 per month for the rest of her life.

READ MORE

Repayment cover is just one of the survivor´s protection benefits, that is part of the ITP occupational pension.
Read more about coverage for survivors