What is investment insurance?

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Investment insurance is a financial instrument that, even when called insurance, is more similar to banking models to make savings profitable. Its structure is practically the same, but with the difference that generates profitability which for the moment is more generous than that derived from bank time deposits. Because these are tools that are designed to guarantee your money and provide performance over the years. In spite of everything, it is better to invest long-term to achieve a higher return.

Se constituyen como un modelo de ahorro que puede sustituir a partir de ahora a los instrumentos financieros tradicionales basados ​​en renta fija. A modo de ejemplo, depósitos a plazo fijo, pagarés bancarios y, en algunos casos, además cuentas de alto pago. Sea cual sea el caso, para contratarlos no es necesario acudir a las entidades bancarias, sino que al contrario, son comercializados por la insurance companies. This is a substantial difference from the other investment models.

On the other hand, investment insurance is a product that in all cases offers a fixed profitability and guaranteed every year. It is not very high, but it allows you to gradually create a savings bag over the years. It is called investment insurance, but it is also known as savings insurance because its basis is to improve this important aspect of the home economy over other technical considerations. It is not a homogeneous format, but you can select between different alternatives that Spanish insurers have designed.

Investment insurance: what is it like?

Investment or savings insurance are policies that guarantee a return associated with a capital that will be deposited during a previously established period of time. This initial capital and the profits made can be recovered at the exact moment this time period ends. Where they are characterized because they allow the opportunity that you can perform new contributions to the initial capital until the end of the established time. Depending on the savings you have in your checking account and the level of acceptance you have of this financial instrument.

Another aspect that you should pay attention from now on is that which refers to your taxes. A tal efecto, resultan más beneficiosos que el resto si van dirigidos a medio y largo plazo. Por otra parte, además son más flexibles, debido a que puedes diseñar una strategy de ahorro o inversión en cualquier fase de tu vida personal o familiar. Dicho de otra forma, puede verse como parte del ahorro infantil, de la jubilación o inclusive para lograr determinados objetivos. Como, a modo de ejemplo, compartir coche o planificar las próximas vacaciones de verano.

Profitability it offers

Whatever the case, what most interests users at the moment is the retribution they can get from now on. It is not established in a unitary way, but the opposite will depend on the selected model and especially on the insurer in charge of marketing it to its clients. Regardless, you can determine an overall return for investment insurance that varies. from 2% to 5% about. Whatever happens in the financial markets since you will know your interest at the same time that you subscribe these products intended for investment.

There is a subtle difference in terms of bank term deposits and that is that in these products the interest can pick it up year after year. Without having to wait for the expiration date to arrive and that could create some other liquidity problem in your checking account. This is one of the great advantages that this type of atypical and at the same time special insurance provides. Whatever the case, with a somewhat better profitability than in banking products and that has made them more attractive for a good number of users. Because at the same time they always guarantee the monetary contributions made up to that moment.

Benefits in your hiring

Definitely, one of the advantages of this insurance is that, if you keep your savings Throughout the minimum time that the legislation defines (5 years from the first contribution), the returns you obtain are tax exempt. This is a very interesting aspect if you want to maintain greater tax savings from the next few years, regardless of the profitability generated by these financial instruments. Just as it enables you to opt for mixed life insurance with the purpose of saving as a strategy to make your personal assets profitable from now on.

On the other hand, it must not be forgotten that the guaranteed capital will be, at a minimum, 85% of the premiums contributed. Where it will be generally from the fifth year of the investment when it is in conditions of recover full investment, that is the 100%. With only one condition and that is that you comply with the contracting regulations, which are very easy to complete. Limited to their hiring age being between 18 and 65 years old. Without ever linking the product to the stock markets.

Savings insurance bailouts

It is a product in which you can perform specific and partial rescues when you need some liquidity in your savings account. But how can this procedure be materialized? Well, we are going to clarify it for you in a simple way so that you understand it from now on. It is based on a system in which you can withdraw money from the first stay. In general, with maximum limits of 15% for the next 2 or 3 years and then lower them to 1%. It is a flexible model in this sense that you can satisfy your desire to anticipate complex situations when you are going to need money.

On the other hand, there is also the fact that the refund of the money, the redemption or the return early Part or all of the invested capital is subject to commissions or penalties. Even though it is also true that it is an investment model that is designed for longer periods of permanence. Not surprisingly, a tool is contemplated to create a more stable savings bag in the long term. Never for very short periods since, on the other hand, it can occur in term bank deposits. This is another difference to pay attention to from now on.

Commissions of these insurances

It is no less important to know that these financial instruments are characterized above all by the fact that the guaranteed capital has just expired and the mobilization or exercise of the right of redemption carries a penalty that can cause losses. Outside of this incidence, savings or investment insurance does not have commissions or other expenses in its administration or maintenance. From this dynamics, you will be saving more money compared to other financial models in which rates of up to 3% are contemplated when carrying out operations and that may limit the possible benefits that you obtain from now on.

From this general scenario, investment insurance can be More beneficial to defend their personal interests, even when they are more unknown among Spanish users. Not surprisingly, their recruitment is currently below that of investors in classic banking products oriented to savings and investment. It will be a matter of analyzing both models to establish which one is best for you to hire today, depending on the profile you present.

With growing annual interest

A novelty that investment insurance provides is that in some models the profitability may be increasing. This in practice means that they go increasing year after year. They start from a guaranteed technical interest of slightly more than the annual 1%, which is what you will receive throughout the first. From this moment on, gradually increasing it, even though without very striking deviations of any kind. So that in the end you obtain a profitability that can be very close to 3%, 4% or 5%. As is currently the case with some term deposits that maintain these same commercial constants.

In summary, it should be mentioned that these financial instruments have been constituted as a real alternative to banking models. With a tremendous struggle to capture customer savings and that leads its issuing entities to develop very aggressive offers and promotions from the beginning. Where in the end you can benefit from the best conditions in your hiring. Beyond other technical considerations that determine the peculiar structure of this financial instrument.

It will be, whatever the case, another alternative you have to make the savings profitable safely and with a minimum return on your financial contributions. At a time when the price of money is at its lowest levels in history, at 0%. a level that will go down in history.