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Repayment cover

You can add repayment cover to your ITP 1 Retirement pension, or to your ITPK if you have ITP 2. 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 start drawing your retirement pension, the repayment cover is paid to your survivors for 5 years. It´s also possible to choose a payment term of between 5 and 20 years. 

If you do not remove the repayment cover, this will apply if you die after you have started drawing your retirement pension:

  • The repayment cover is valid for the remaining payment period, but for a maximum of 20 years, if you have chosen to draw your pension over a certain period.
  • The repayment cover is valid for a maximum of 20 years if you take out your retirement pension for life and start your payment before you turn 67.
  • The maximum duration of the repayment cover is until you reach/would have reached the age of 87, if you draw your retirement pension for life and start receiving it when you are 67 or older. 

The amount paid out depends on how much you have saved in ITP 1 Retirement Pension or ITPK.

You can add a repayment cover to your ITP 1 retirement Pension from the age of 25, and to your ITPK from the age of 28. The repayment cover is paid out by the company in which you have placed your ITP 1 retirement pension or ITPK. 

How to add or remove repayment cover

Contact Avtalat 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.

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.

En illustration av en miniräknare

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.
Två yngre kvinnor som håller om varandra och ser glada ut

EXAMPLE – AMANDA WANTS TO REMOVE HER REPAYMENT COVER

Amanda, 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.

Who receives the money

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

You may write a special beneficiary clause if you wish and decide who will benefit from your repayment cover yourself. 

 

 

 

En illustration som visar två personer krama om varandra bredvid en hund. I bakgrunden finns en buske och fjärilar.

All choices are made by you at Avtalats website avtalat.se.

Further information

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