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Why Early Prevention Is So Important for Children
Securing a child's financial future is one of the best investments parents, grandparents, and godparents can make. However, traditional savings accounts or fixed-term deposit accounts often offer very little return these days. DEVK's SmartInvest Junior insurance combines the security of an annuity with the potential returns of investment funds—thereby opening up a future full of possibilities for your child. Whether it's for college, a driver’s license, or starting a business —with an early savings plan, your child will be free to decide later how to use the money they’ve saved.
The Benefits of SmartInvest Junior Insurance at a Glance
- Flexible Savings – You decide how much to invest each month or as a one-time payment. You can get started with as little as 25 euros a month.
- High Potential Returns – By investing in various mutual funds, you can achieve attractive returns over the long term.
- Security Through Additional Options – DEVK covers any gaps in premiums if the policyholder is unable to pay.
- Tax Benefits – Investment income is tax-free while held within the insurance policy and is not subject to tax until it is paid out.
- Flexible Use of the Funds – The child can access the money between the ages of 18 and 25, whether for college, a place of their own, or other dreams.
- Making the Most of Cash Gifts – With the “Join In” option, relatives and friends can contribute directly to the growth of the investment.
What is the SmartInvest Junior Insurance Plan?
The SmartInvest Junior Insurance is a unit-linked pension plan designed to provide financial security for children and teenagers. It combines flexible savings plans with the growth opportunities of the capital markets. An additional benefit: If the person paying the premiums is unable to do so due to disability or death, DEVK will cover the premium payments upon request—ensuring maximum coverage. With the With the "Join In" option , relatives and friends can also deposit monetary gifts directly into the insurance policy—a smart alternative to traditional monetary gifts for Christmas or birthdays.
How SmartInvest Junior Works in Practice
Sample Scenario: A Savings Plan for Mia When Mia was born, her parents decided to get the SmartInvest Junior insurance policy with a a monthly contribution of 50 euros. In addition, they receive cash gifts from relatives, bringing the total to Approximately 1,000 euros are invested annually . After 18 years, the capital has grown significantly due to the effect of compound interest and the fund's returns.Mia can now: -Financing Your Education -Make a study abroad program possible (approx. 10,000 euros for one semester) -Or use the money to buy your first apartment or start a business.
Investment Options: Tailored Strategies for Every Risk Profile
Depending on your personal risk tolerance, there are various investment strategies to choose from: RenditeMax – Maximum Growth Potential Through a High Allocation to Stocks RenditePro – A Balanced Mix of Stocks and Bonds SmartProtect – A security-focused strategy with high stability ETF: S&P 500 – Low-cost, broadly diversified, and with strong long-term returns
Why It Pays to Invest Early
Thanks to compound interest, capital grows exponentially over time. Here's an example: Anyone who contributes 50 euros per month starting at birth can accumulate a final balance of over 20,000 euros by the age of 18, assuming an average return of 6 percent. If, on the other hand, you don't start until age 10, the final balance—assuming the same contribution and rate of return—will be only about 9,000 euros. So starting early really makes a big difference!