Saving for the future guarantees us a quiet retirement. There are many who decide to save for this moment and that is why it is not surprising that we can find an infinite number of savings products in the market for retirement. One of those products is Life insurance savings, a good alternative that allows us to ensure capital or income for the time we need it most.
When hiring this and other savings products, as well as all kinds of Life insurances, Insurance for SMEs o Insurance Policies for the Self-Employed , the best thing is to have more than 24 years of experience of Euroteide Seguros, a consultancy that provides its services in the south of Tenerife and that will hit the nail on the head by finding the insurance that best suits you and your needs.
What is a savings life insurance
El Life insurance savings is a product that combines a savings plan and life insurance. Through periodic contributions and the profitability that these contributions are generating, these products offer liquidity at all times. Furthermore, the capital of these savings products is guaranteed by the Consorcio de Compensación de Seguros In the same way that deposits are protected by the Deposit Guarantee Fund (FGD), life savings insurance is also protected by the fund for the settlement activity of the Insurance Compensation Consortium (CSS). The difference is in favor of the Consortium, since it has no limit by NIF, and the FGD does, specifically up to € 100.000.
If we talk about life savings insurance, we refer to: Retirement Insurance, Insured Pension Plans (PPA), PIAS, SIALP, Unit Linked Insurance, Income, Savings insurance, Unique Premiums, etc.… In short, any insurance with a savings and / or investment component. Being able to recover in the form of a single income or through periodic payments in the form of a life annuity. This type of product is a good alternative to pension funds or investment funds, among other financial products, which offers a determined return on a fixed term.
What are its characteristics and advantages
Life insurance with savings has the following character:
- Capital is guaranteed and a fixed-term yield is obtained.
- The insurer guarantees the return of capital.
- The capital is insured by the fund for the settlement activity of the Insurance Compensation Consortium (CSS), so that if the insurer goes bankrupt, the insured gets his money back.
- The insured's contributions are invested in conservative financial assets that achieve a certain return at low or medium risk.
- They offer liquidity at all times.
Although there are other savings products for retirement that also offer some profitability, Savings life insurance has a series of advantages. They are as follows:
In addition to being a savings product, incorporates life insurance that covers the death of the insured.
- Profitability can be fixed or variable, so it can be fully adapted to the needs of its owner.
- Although they are designed to save in the long term, they can also be raised in the short term depending on the needs of the saver.
- The capital is guaranteed by the insurer and, in the event of a bankruptcy the fund for the settlement activity of the Insurance Compensation Consortium (CSS).
- It offers a certain return at low or medium risk.
When is it better to take out savings life insurance
Although the really important thing is to hire a savings life insurance when the situation of each person allows it, experts point out that the best time is between 30 and 50 years old, especially if we have or are starting a family.
Undoubtedly, these types of savings products, which also include life insurance, are a very good option for get a good cushion of money that allows us to solve any emergency or problem that may arise in the future - buying a car, for example - in addition to ensure a supplementary income to our retirement pension y guarantee the financial stability of our family in case something happens to us.
However, this type of insurance is designed to savers with a mature profile, since these are products of long-term savings for retirement.
Types of savings insurance
There are different savings insurance, although the most important are the following:
Individual Long-Term Savings Insurance or SIALP
Un SIALP is a type of life insurance that aims at long-term savings, being especially indicated for conservative profile savers looking for a high profitability.
This type of products allow you to make contributions of up to 5000 euros per year. The capital will be revalued in accordance with the interest that the insured has agreed with the insurance company and, once 5 years have passed, the holder may redeem all the money. This does not mean that it is impossible to redeem the money before 5 years have elapsed, but that, if this period of time is not respected, the insured will lose the tax exemptions to which they would be entitled.
Individual Systematic Savings Plan or PIAS
El PIAS o Individual Systematic Savings Plan is a type of life insurance that allows us to save in the long term obtaining a certain profitability. In addition, these types of savings products have a series of tax benefits and allow the beneficiary to obtain the insured capital in the event of the death of the insured.
Through a PIAS, the insured must make sporadic and periodic contributions, and this It will allow you to receive an income for life once at least 5 years have passed since you paid the first premium Insurance.
In this type of life insurance savings contributions of a maximum of 8000 euros per year can be made and the tax credit will only be obtained once 5 years have passed since its opening and as long as the life annuity is collected. On the other hand, the maximum limit for contributions is € 240.
Insured Pension Plan or PPA
The PPA or Pension Plans Insured shows Life insurance very similar to pension plans that are intended to supplement the Social Security retirement pension. In fact, these savings products have the same taxation as pension plans. In addition, these savings products they also contain life insurance which will be charged in the event of the death, disability or retirement of the owner.
This type of life savings insurance guarantees the capital contributed, as well as a certain return without any risk. However, In order to redeem the insured capital, 10 years must have elapsed since the first contribution was made.
Hiring a good life savings insurance is a very good option if we want to have a quiet retirement. However, there are countless types of savings life insurance and we are not always right in our choice. Therefore, it is best to have experts in the field, such is the case of Euroteide Seguros, an insurance consultancy with more than 24 years of experience that operates in the south of Tenerife and that will guide us to find the product that best suits us and our needs.