PRODUCT REVIEW — BRANCH 21
Guaranteed capital, guaranteed rate, zero market risk. AG Insurance sells peace of mind. Here is what that peace of mind actually costs you over 30 years.
TL;DR
AG Safe+ combines 2% premium tax + ~1% entry fee = 3% total friction before investment. Guaranteed rate 2.75% (year 1) / 2.25% (subsequent years) + unguaranteed profit participation → estimated net return ~2.80%/year. Branch 21 is exempt from capital gains tax — a genuine tax advantage, already fully credited in our simulation. It represents ~€5,720 over 30 years. The gap with a World ETF remains ~€213,000. There is no investor profile for whom AG Safe+ is the optimal choice over a long horizon.
Rates and fees based on AG Insurance product documentation. Guaranteed rate and profit participation subject to change. Verify current conditions before subscribing.
The 2% premium tax is a statutory requirement (Art. 173 ITC) that applies to every payment in any Belgian Branch 21 life insurance product. No provider can waive it. Switching broker or contract does not remove it.
In practice: of €300 deposited per month, €6 disappears immediately in premium tax before any investment. Over 30 years, that is €2,160 lost to premium tax alone.
Combined with ~1% entry fees, only €291 of your €300 actually starts working. And at ~2.80%/year, it takes roughly 13 months of guaranteed return just to recover your initial investment.
At ~2.80% net/year, it takes ~13 months of guaranteed return just to recover your initial outlay after the 3% entry friction. In that time, a World ETF has already gained ~2%.
The 2% premium tax is not a negotiable fee — it is a statutory levy (Art. 173 ITC). It applies to every payment, forever, regardless of the contract’s return.
Branch 21 is exempt from withholding tax on interest. That is true. But accumulating ETFs like IMIE distribute no dividends and therefore also pay 0% withholding tax.
You pay 3% entry fees to ‘buy’ a withholding tax exemption that the accumulating ETF already gives you for free. This is the equivalent of buying insurance against a risk you don’t have.
WITHHOLDING TAX — NO ADVANTAGE VS ETF
Branch 21’s withholding tax exemption gives you no advantage over an accumulating ETF like IMIE. Both pay 0% withholding tax. You pay 3% upfront for protection against a problem you don’t have.
Branch 21 is exempt from the 10% capital gains tax (CGT). ETFs are not — they pay 10% on gains above €10,000/year. This is a genuine and documented tax advantage.
We fully credit this in our simulation: €0 CGT for AG Safe+, versus €29,000 for the ETF. This advantage represents ~€5,720 over 30 years — less than 3% of the total gap of ~€213,000.
CGT — GENUINE ADVANTAGE, ALREADY CREDITED
Branch 21 is exempt from capital gains tax (10%). ETFs are not — they pay 10% on gains above €10,000/year. This advantage is credited in our simulation (€0 CGT for AG Safe+). It represents ~€5,720 over 30 years — less than 3% of the total gap of ~€213,000.
Simulation on a lump-sum investment of €20,000, horizon 9 years — the maturity proposed by Branch 21 products. All amounts are net values (after fees and taxes).
| AG Safe+ | World ETF (IMIE) | XEON (money market ETF) | |
|---|---|---|---|
| Entry fees | −3.00% (−€600) | −0.12% TOB (−€24) | −0.12% TOB (−€24) |
| Capital invested | €19,400 | €19,976 | €19,976 |
| Estimated return | ~2.80%/yr | ~8.00%/yr (hist.) | ~2.90% (€STR, variable) |
| Value after 9 years | ~€24,800 | ~€38,910 net | ~€25,900 |
| Liquidity | Penalty before 8 years | Full — sell in 1 day | Full — sell in 1 day |
| CGT / Capital gains tax | €0 (Branch 21 exempt) | ~−€990 (10% on gain > €10,000) | €0 (gain < €10,000 → threshold not reached) |
Over 9 years, XEON beats AG Safe+ (+€25,900 vs +€24,800) with full liquidity and 0% management fees. The World ETF goes further still (+€38,910 net).
Over 9 years — the duration the product itself proposes — the World ETF already wins. Over 30 years, the gap becomes a life decision.
Methodology note: the 8% return used for IMIE is based on the historical average of the MSCI ACWI IMI over 20 years (2005–2025). The 2.80% return for AG Safe+ is optimistic: it includes unguaranteed profit participation. Branch 21’s CGT exemption is fully credited to AG Safe+ in this simulation.
Simulate your own situation with your amount and time horizon.
Open the calculator →The real cost of “security” shows up over the long term. Over 30 years, successive renewals of AG Safe+ leave an enormous gap versus a World ETF.
| AG Safe+ | World ETF (IMIE) | |
|---|---|---|
| Entry friction | −3.00% (tax + fees) | −0.12% TOB (buy + sell) |
| Estimated net return | ~2.80%/yr | ~8.00%/yr (hist.) |
| Gross value after 30 years | ~€44,300 | ~€201,000 |
| Capital gains tax | €0 (Branch 21 exempt) | ~−€17,100 (10% above €10,000) + TOB −€241 |
| Final net value | ~€44,300 | ~€183,659 |
| Gap | — | +~€139,000 |
The World ETF generates ~4.1× more than AG Safe+ over 30 years — a gap of ~€139,000, even after crediting Branch 21’s CGT exemption.
Methodology note: simulation based on a lump-sum investment of €20,000. For the 30-year horizon, successive renewals of the Branch 21 product are assumed (entry fees re-applied at each maturity). The 8% return for IMIE is based on the historical average of the MSCI World index over 30 years. Past performance does not guarantee future results.
For a detailed Branch 21 vs XEON comparison on a short horizon, see also our Ethias Savings 21+ review. View the Ethias Savings 21+ review
AG Safe+ is a legally sound product — guaranteed capital, regulated insurer, clear contract. We do not question the solidity of AG Insurance.
But Branch 21 carries an unavoidable structural cost: the 2% premium tax on every payment, combined with a return capped at ~2.80%/year. Over 30 years, this cost far exceeds the CGT advantage Branch 21 offers over ETFs.
Over 30 years, the World ETF IMIE generates ~4.1× more than AG Safe+ — a gap of ~€139,000 after taxes. The 3% entry friction is structurally disadvantageous for long-term savers.
Over a short horizon (< 8 years): XEON offers a comparable return, with no entry fees, no lock-in, and no minimum.
There is no investor profile for whom AG Safe+ is the optimal choice over a long horizon. For any horizon: an ETF alternative does better.
Legitimate use case
None that withstands comparison. For a long horizon: World ETF. For a short horizon: XEON. For estate planning: AG Fund+ (Branch 23) offers beneficiary designation with greater return flexibility.
Avoid for
Any investor with a horizon over 3 years who has access to an ETF broker. Note: ‘I can’t tolerate volatility’ is not a sufficient reason — a World ETF has never produced a real loss over 15 years. Short-term volatility is not a long-term loss risk.
Last updated: April 2026
Illustrative simulation only. Past returns do not guarantee future returns. This tool does not constitute investment advice under the MiFID II directive.