Kapitalförsäkring (KF)
A kapitalförsäkring (KF) is an insurance-wrapped investment account. Like an ISK it is taxed by a small yearly schablon charge rather than on gains, but the money is formally owned by the insurance company. You are the policyholder (försäkringstagare), and you can name a beneficiary (förmånstagare) who receives the money if you die.
ISK vs KF
The tax works almost the same. A KF adds a named beneficiary (useful for passing money on) and can reclaim foreign dividend tax through the insurer. In return it often carries a small wrapper fee, and you do not own the holdings directly, so you have less say in a corporate action like a vote.
When KF wins
Mainly three cases: portfolios heavy in foreign dividend shares (the withholding-tax handling), when you want to name a beneficiary, or for company-owned savings. For most private savers a plain ISK is simpler and does the same job.
Where it shows up
- ISK vs pension
- Compound savings
Because the insurer is the legal owner, you give up a little control and pay a small fee. Weigh that against the beneficiary and foreign-dividend benefits, for a simple Swedish or global fund portfolio, an ISK usually wins on cost.