{"id":410,"date":"2016-11-10T10:18:13","date_gmt":"2016-11-10T09:18:13","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/kapitaalverzekering-eigen-woning-afkopen\/"},"modified":"2026-03-03T10:32:49","modified_gmt":"2026-03-03T09:32:49","slug":"surrendering-a-home-equity-insurance-policy","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/kapitaalverzekering-eigen-woning-afkopen\/","title":{"rendered":"Surrendering a home equity insurance policy"},"content":{"rendered":"

\"endowment<\/p>\n

Many mortgages taken out to finance a home also include a capital insurance policy. The intention is that the capital accumulated through this \u2018home ownership capital insurance\u2019 (KEW) policy will be used to repay the mortgage.<\/p>\n

Endowment insurance<\/h4>\n

With an endowment policy, you generally pay premiums monthly, quarterly or annually. The insurance company invests these premiums or pays interest on them. When the policy reaches the end of its term (upon expiry), the accumulated capital is paid out to you.<\/p>\n

Savings account<\/h4>\n

An alternative to the home ownership endowment insurance (KEW) is the home ownership savings account (SEW). In this case, you do not pay any premiums, but instead make regular deposits into a savings account with a bank each month, quarter or year. At the end of the SEW term, the balance in the savings account is paid out to you.<\/p>\n

Income<\/h4>\n

The income from a KEW or SEW is calculated as the difference between the premiums or contributions paid and the capital paid out.<\/p>\n

Example<\/em>
\nYou pay a monthly premium of \u20ac100 for 20 years. The total premium paid will then amount to: 240 * \u20ac100 = \u20ac24,000.<\/em>
\nUpon expiry, the insurance company will pay out the accumulated capital, amounting to \u20ac30,000, to you.<\/em>
\nYour income from the endowment policy will then be: \u20ac30,000 \u2013 \u20ac24,000 = \u20ac6,000.<\/em><\/p>\n

It should be noted that, in this example, the full premium of \u20ac100 is not actually invested. For example, the insurance company\u2019s fees, as well as the premiums for additional insurance policies, are paid out of the premium in advance.<\/p>\n

Exemptions<\/h4>\n

Income from a KEW or SEW is not subject to income tax if:<\/p>\n

    \n
  • the benefit does not exceed \u20ac 36.800<\/strong> and for at least 15 years<\/strong> has paid or contributed a premium;<\/li>\n
  • the benefit does not exceed \u20ac 162.000<\/strong> and for at least 20 years<\/strong> has paid or contributed a premium.<\/li>\n<\/ul>\n

    Other conditions for the application of the exemption are:<\/p>\n

      \n
    • the highest annual premium may not exceed 10 times the lowest annual premium;<\/li>\n
    • The exemption applies insofar as the payment is actually used to make repayments on the mortgage on the owner\u2019s own home.<\/li>\n<\/ul>\n

      Example<\/em>
      \nIn the previous example, the homeowner pays a premium of \u20ac10,000 in the first year. In subsequent years, they pay \u20ac100 per month.<\/em>
      \nThe highest annual premium is therefore \u20ac10,000. The lowest is 12 \u00d7 \u20ac100 = \u20ac1,200.<\/em>
      \n10 times the lowest annual premium comes to: 10 \u00d7 \u20ac1,200 = \u20ac12,000.
      \nConclusion: the highest annual premium was less than 10 times the lowest annual premium. The exemption applies.<\/em><\/p>\n

      Lump-sum settlement<\/h4>\n

      Homeowners facing financial difficulties may sometimes need to withdraw the capital from their KEW or the balance on their SEW before the end of the term. If premiums have not been paid or contributions made for 15 or 20 years, the payout is not exempt from income tax. Naturally, tax is only payable if the KEW or SEW has, on balance, generated a positive return.<\/p>\n

      Time limits do not apply<\/h4>\n

      The required periods of contribution payments described above are the time constraints<\/em> as mentioned. In the cases set out below, these time limits do not apply. This means that the benefit paid under the KEW or SEW is exempt, even though contributions have not been paid or accrued for at least 15 or 20 years.<\/p>\n

      These situations are:<\/p>\n

        \n
      • termination of a tax partnership (for example, in the event of divorce);<\/li>\n
      • if debt counselling is offered;<\/li>\n
      • the sale of one\u2019s own home, where a new home is immediately available (KEW or SEW to be paid within 6 months of the sale of the home);<\/li>\n
      • if the costs associated with the owner-occupied home can no longer be met (as assessed by a designated department of the Tax and Customs Administration in The Hague).<\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"

        Bij veel leningen voor de financiering van de eigen woning is ook een kapitaalverzekering afgesloten. De bedoeling is dat met het in deze kapitaalverzekering eigen woning (KEW) te sparen kapitaal de lening wordt afgelost. Kapitaalverzekering Voor een kapitaalverzekering betaalt u in het algemeen per maand, kwartaal of jaar premie. De verzekeringsmaatschappij belegt die premies of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-410","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/410","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=410"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/410\/revisions"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}