It is possible to insert a beneficiary (one or more) on your capital pension and/or premium capital pension, along with your group life insurance.
Unless you have agreed otherwise with us, your next-of-kin (see definition below) will receive the money from your schemes or group life insurance.
You have tax reduction for your pension contributions. As a result of this the Danish Pension Taxation Law restricts who you can insert as beneficiaries on your pension scheme. According to the law, you can insert the following people as beneficiaries; next-of-kin, spouse/recorded partner (hereunder also divorced spouses), a named cohabitant and/or children (hereunder also stepchildren, cohabitants children and the heirs of these), as you don't have tax deduction for your group life insurance, the restrictions don't apply for the group life insurance.
According to the Estate tax law, an Estate tax will be levied on the possessions left by the deceased, in this scenario a capital pension and/or premium capital pension, will be seen as a possession. The pension fund withholds the Estate tax before disbursement. The size of the Estate tax depends on who the recipient is, and varies from 0%, 15% and 36,25%. Spouses are exempt from the Estate tax.
In legal terms, your next-of-kin is defined as (in descending order of priority):
- Spouse or registered partner
- Cohabitant* – this applies only if, for at least two years, you and the deceased had a shared address, as recorded by the national registry office (folkeregisteret), or you and the deceased have, or had, or expected to have a child
- Heirs of the body (children)
- Beneficiaries under a will
- Beneficiaries under intestacy (Parents, siblings, nieces and nephews, grandparents, along with siblings of your parents)
If you wish others than next-of-kin to be a beneficiary, please contact the pension fund.
*You are a cohabitant from legal point of view, if 1) you lived together with the deceased at the time of death and are expecting/have/have had children by the deceased or 2) you lived together with the deceased at the time of death and lived in a marriage like relationship with the deceased at a shared address during the two years prior to the death.
The next-of-kin is automatically a beneficiary on your lump-sum coverage and a possible expiring-annuity pension.