Paid-up policy

Paid-up policy terms (PDF, Norwegian)

Terms of continuation insurance (pdf, Norwegian)

Terms and conditions of a paid-up policy with investment options (pdf, Norwegian)

For the vast majority of paid-up policies, a retirement pension is paid out from the age of 67. However, you can choose to start disbursements from as early as 62 years of age. You can also postpone disbursements until age 75 at the latest. If you wish to change the payment date, you must notify us. Some paid-up policies start payments from 77 years of age or later. As a rule, these cannot be changed to an earlier payment date.

If you start receiving payments from your retirement pension earlier than agreed, this will affect how much you will be paid because the money will be spread over several years.

If you are partially incapacitated for work, the sum of the paid disability pension and retirement pension can amount to a maximum of one hundred percent of the retirement pension benefit. Disbursements of a disability pension generally stop when you turn 67.

You can withdraw your retirement pension while receiving a salary.

You’ll get a guaranteed return on your paid-up policy. This is a minimum return that the pension provider must produce each year to secure your agreed pension disbursement.

In a paid-up policy with investment options, the growth in value of returns and costs associated with your investment choice are affected.

An ordinary paid-up policy costs you nothing. The employer has paid a lump sum to secure your annual pension disbursement. This lump sum is used to cover future costs.

For paid-up policies with investment options, you must cover the costs for management and platform fees. When transferring to a paid-up policy with investment options, all or part of the costs that the employer has prepaid will be transferred to a paid-up policy with investment options.

By choosing a paid-up policy with investment options, you can influence the return and your future pension disbursement. This gives you access to a wide range of pension profiles and competitive mutual funds.

If your paid-up policy has a dependant's pension, such as a spouse’s/cohabitant’s pension or child’s pension, these will be paid out in the event of death. The coverages cannot be changed or removed. You will find more information about this on your account statement in the inbox in DNB’s online bank.

No outstanding retirement pension will be paid to survivors in the event of death. The capital belonging to the retirement pension will be distributed to other customers with a paid-up policy in DNB Livsforsikring. This applies to both ordinary paid-up policies and paid-up policies with investment options.

If your paid-up policy has a disability pension, you may be entitled to disability disbursements. Information about ancillary benefits can be found in DNB’s online bank. You can also report being incapacitated for work here.

The paid-up policy with investment options only covers your retirement pension. If your regular paid-up policy has ancillary benefits for changes to a paid-up policy with investment options, the ancillary benefits will remain in the regular paid-up policy.

A paid-up policy cannot be moved to or from another pension provider.

If you have a paid-up policy with investment options, this can be moved to us.

Until the withdrawal of pension, there is no tax on the paid-up policy. When disbursements start, the disbursements are taxed as pension income.

A paid-up policy with investment options is best suited to anyone who wants the opportunity to influence their returns, and also has more than ten years left until retirement. When transitioning to a paid-up policy with investment options, you can give up the guaranteed return. We usually do not recommend switching to a paid-up policy with investment options if your regular paid-up policy has a guaranteed return of three per cent or higher.

Switching to a paid-up policy with investment options is not offered to clients who have started withdrawing retirement pensions from a regular paid-up policy.

The payment date and payment period agreed in the regular paid-up policy are continued when changing to a paid-up policy with investment options.

When disbursements start, you will be able to choose management again during the disbursement period. You can then choose a guaranteed return or investment options.

In order for the payment to be greater than agreed, the ordinary paid-up policy must receive a higher return than what is guaranteed. There is little likelihood that it will happen. In a paid-up policy with investment options, the growth in value of returns and costs associated with your investment choice are affected.

A recalculation is done before disbursements of the retirement pension start. This means increasing the annual pension disbursement in return for reducing the payment period. The capital is thus paid out faster than agreed.

For paid-up policies with low capital (below 30 per cent of G), the payment is automatically converted into an annual payment of approximately 30 per cent of G and the payment period is shortened.

In many cases, the payment period can also be reduced more by increasing the payment to 50 or 100 per cent of G. This is called voluntary recalculation. The minimum payment period is twelve months. If you choose to make voluntary conversions, it may be advisable to consider withdrawals from the paid-up policy before making withdrawals from the pension account. It is not possible to do a new recalculation for paid-up policies that are already being disbursed.

Feel free to talk to a pensions adviser about what suits you best.