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Who will be entitled to collect my group insurance proceeds when I pass away?
Death benefit coverage
With this coverage, your beneficiaries will be entitled to collect a certain amount of money if you pass away before the plan maturity date. To find out how much death benefit coverage you have, check your benefits statement or go to My Global Benefits.
Who are my beneficiaries?
Your pension plan regulations will specify who your beneficiaries are in the event of your death. The pension plan regulations apply a standard order of precedence.
If permitted in the pension plan regulations, you may deviate from the standard sequence of beneficiaries. To do so, you must send a written notification of your intentions.
To find out more about designating and changing your beneficiaries, read through our explanatory note. If you wish to make changes to your order of precedence, you can do so via this form.
What net amount will my beneficiaries collect if I pass away?
The death benefit will be taxed based on the beneficiary’s relationship to you.
If the beneficiary is the widow(er):
- Illness-Disability contribution (INAMI/RIZIV contribution): 3.55%
This is the percentage that will be deducted from the total gross proceeds (= employee contributions + employer contributions), including profit sharing.
- Solidarity contribution: 0-2%
The solidarity contribution is payable based on the total gross proceeds, profit sharing included. The percentage varies between 0% and 2%, depending on the total gross amount, including profit sharing. In practice, this means a deduction of 2% on lump-sum payments greater than or equal to EUR 74,368.06, and 1% on lump-sum payments between EUR 2,478.94 and EUR 74,368.06. No solidarity contribution is due on smaller amounts.
- Withholding tax: 10.09% or 16.66%
Withholding tax will be calculated based on the gross proceeds, excluding profit sharing, less the INAMI/RIZIV and solidarity contributions. A withholding tax of 16.66% (16.5% + municipal surcharge) will apply to employer contributions as well as individual contributions made by the deceased prior to 1 January 1993. Individual contributions made by the deceased as of 1 January 1993 will be subject to a withholding tax of 10.09% (10% + municipal surcharge).
If the beneficiary is someone other than widow(er):
- Withholding tax: 10.09% or 16.66%
Withholding tax will be calculated based on the gross proceeds, excluding profit sharing, less the INAMI/RIZIV and solidarity contributions.A withholding tax of 16.66% (16.5% + municipal surcharge) will apply to employer contributions as well as individual contributions made by the deceased prior to 1 January 1993. Individual contributions made by the deceased as of 1 January 1993 will be subject to a withholding tax of 10.09% (10% + municipal surcharge).
Note: In both cases, the amount payable to the beneficiary will be determined in accordance with the applicable tax legislation at the time of payout.
Do the death benefit proceeds have to be declared on the beneficiary’s tax return?
AG Employee Benefits will report the death benefit proceeds paid to the beneficiary(ies) to the Land Registration and Estates Department. The beneficiary(ies) and/or their civil law notary will receive a copy of this declaration.
Municipal taxes will be calculated based on this declaration. The municipal tax rate varies depending on where the beneficiaries have their permanent residence.
The year after the proceeds are paid, AG Employee Benefits will send out tax form 281.11 to all beneficiaries. They can use the information contained on this form to file their tax return.
Will my beneficiary(ies) have to pay estate tax on the death benefit proceeds?
If you have mandatory death-in-service coverage as part of your group insurance plan and your spouse and/or children under the age of 21 are the beneficiaries, there will be no estate tax to pay.
In all other cases, estate tax will be due on the plan proceeds. The tax will be determined in accordance with the rate applicable in the decedent’s place of residence.
Estate tax will also be due if your group insurance plan was pledged to obtain a mortgage loan.
Where can I check my death benefit amount?
You’ll find this amount on your benefits statement and on the My Global Benefits online platform (in the "Death" section).