Paid-up policy with unit-linked products

A paid-up policy with unit-linked products gives you the opportunity to decide for yourself how your retirement pension funds are invested.

Accrued pension entitlement
Wide range of pension profiles and funds
Potential for higher rate of return

There is no guaranteed interest rate in a paid-up policy with unit-linked products. The value development is determined by the price development of the funds you have chosen at any given time. The expected rate of return is affected by the costs of the funds you choose.

You can invest the money where you believe you can achieve the best rate of return, relative to the risk you are willing to take. A paid-up policy with unit-linked products is best suited for you if you have several years remaining until retirement age. The longer the savings horizon, the better.

Pension Profiles and Funds for Paid-Up Policy with Unit-Linked Products

Many consider a paid-up policy with unit-linked products because it offers the potential for a higher rate of return and therefore a higher pension.

See Which Funds You Can Choose

Different characteristics

Rate of return/risk	Paid-up policy with guarantee	Paid-up policy with unit-linked products
Annual rate of return guaranteed by DNB Liv	Yes DNB Liv guarantees that the paid-up policy receives a guaranteed minimum return each year	No Value development depends on the return of the funds you have chosen
Can you choose how the funds are invested?	No	Yes
Who bears the risk for the value development of the agreement?	DNB Liv	You assume the risk
The size of the payout?	Guaranteed annual payout	Annual payout depends on the return of the funds you have selected

Do you have a paid-up policy with guarantee in DNB?

If you wish to switch to a paid-up policy with unit-linked products, you can book a telephone call with an adviser here.

If you would like advice or more information about paid-up policies with unit-linked products, you can complete the form below. One of our advisers will then contact you to find a solution that suits your situation. The call takes approximately 30 minutes.

Contact me for advisory services

Do you have a paid-up policy with unit-linked products with another company?

You can transfer your pension capital from one pension provider to another.
Transfer your paid-up policy with unit-linked products to us.

Go to transfer form

Payout of retirement pension

The main rule is that payout of retirement pension can start from the age of 62 at the earliest. Some occupational groups have a lower retirement age – check what is stated in your insurance certificate

Frequently asked questions about paid-up policies with unit-linked products

What rate of return will I receive on a paid-up policy with unit-linked products?

What happens if I become incapacitated for work?

If your paid-up policy has disability pension, you may be entitled to a payout in the event of disability. Information about additional cover can be found in DNB's online bank. Here you can also report disability.

A paid-up policy with unit-linked products only has cover for retirement pension. If your ordinary paid-up policy has additional cover when converting to a paid-up policy with unit-linked products, the additional cover will remain in the ordinary paid-up policy.

How is the payout from a paid-up policy with unit-linked products taxed?

How is the payout affected when converting to a paid-up policy with unit-linked products?

What does recalculation of pension payout mean?

It means increasing the annual pension payout in exchange for reducing the payout period. The capital is therefore paid out more quickly than originally agreed.

For paid-up policies with a low annual pension (below 30 per cent of G), the payout will automatically be recalculated to an annual payout of approximately 30 per cent of G and the payout period will be shortened.

In many cases, the payout period can also be shortened further by increasing the payout to 50 or 100 per cent of G. This is called voluntary recalculation. The minimum payout period is twelve months. You must decide whether you wish to have a voluntary recalculation from the time you start drawing your retirement pension. It is not possible to make a new recalculation for paid-up policies that are already in payout.

Please speak with a pensions adviser about what suits you best.

When can I receive payout from my paid-up policy?

For the vast majority of paid-up policies, retirement pension is paid out from age 67. However, you can choose to start the payout from age 62 at the earliest. You can also defer the payout, starting no later than age 75. If you wish to change the payout date, you must notify us.

If you start payout of retirement pension earlier than agreed, this will affect how much you receive annually, because the funds will be distributed over more years.

If you are partially incapacitated for work, the sum of disability pension and retirement pension paid out can amount to a maximum of one hundred per cent of the retirement pension benefit. Payout of disability pension generally stops when you turn 67.

You can draw retirement pension whilst receiving a salary.

What does a paid-up policy with unit-linked products cost?

What happens if I die?

If your paid-up policy includes dependant's pension, such as spouse/cohabitant pension or child's pension, these will be paid out upon death. The cover cannot be changed or removed. You will find more information about this in your account statement in your inbox in DNB's online bank.

Remaining retirement pension will not be paid out to survivors upon death. The capital belonging to the retirement pension will be distributed among other customers with paid-up policies in DNB Livsforsikring. This applies to both ordinary paid-up policies and paid-up policies with unit-linked products.

Can I transfer a paid-up policy with unit-linked products to DNB?

Who is a paid-up policy with unit-linked products suitable for?

A paid-up policy with unit-linked products is best suited for you if you want the opportunity to influence the return and have more than ten years remaining until retirement age. By converting to a paid-up policy with unit-linked products, you waive the guaranteed return. We generally do not recommend converting to a paid-up policy with unit-linked products if your ordinary paid-up policy has a guaranteed return of three per cent or higher.

What determines the size of the payout from a paid-up policy with unit-linked products?

How does downweighting work?

When a paid-up policy with unit-linked products is established, downweighting is agreed if there are more than six years remaining until the payout date. Downweighting takes place to reduce the risk of large fluctuations in the pension capital in the period before payout. Downweighting involves a gradual reduction of units in funds with a proportion of shares higher than 30 per cent. The downweighting can start ten years or five years before the payout must begin. If downweighting is agreed, this will happen automatically on a quarterly basis to Pension Profile I Index 30. You can change or cancel the downweighting agreement. However, it is not possible to enter into a downweighting agreement when you have less than six years remaining until the agreed payout date.

How is lifelong pension from a paid-up policy with unit-linked products calculated?

Upon payout of retirement pension from a paid-up policy with unit-linked products, a rate of return of three per cent (technical interest rate) is advanced. The monthly payout is calculated based on the current balance. The monthly payment is a proportion of the balance divided by the remaining expected useful life. This is shown as a divisor based on the dynamic mortality table K2013, approved by the Financial Supervisory Authority of Norway.

Right to cancel

How do I switch funds

Which assets are transferred into a paid-up policy with unit-linked products

A paid-up policy with unit-linked products only includes retirement pension cover. If the guaranteed paid-up policy contains risk cover such as dependant's pension/disability pension, these will remain in the guaranteed paid-up policy. When establishing a paid-up policy with unit-linked products, reserves linked to retirement pension, a proportion of the administration reserve and a proportion of the buffer fund are transferred to the unit-linked paid-up policy agreement.

How do I plan for retirement?

Fact Sheets and Terms

Facts for Paid-up Policies with Unit-linked Products

Fact Sheet on Paid-up Policies with Unit-linked Products (PDF)

Terms for Paid-up Policies with Unit-linked Products

Terms for Paid-up Policies with Unit-linked Products (PDF)

How your paid-up policy works

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EU classification of mutual funds

The Sustainable Finance Disclosure Regulation (SFDR) came into effect in the EU on 10 March 2021. This has made it easier to compare financial products and services from a sustainability perspective, through uniform information and increased transparency.

The rules and legislation impose requirements on classifying mutual funds and pension profiles and include different categories depending on investment focus and how the fund is managed.

See expectation documents DNB Liv