How to Have a Life Insurance and a Savings Fund?
July 29, 2019
We all take out life insurance but have no interest in making use of it. So we tend to forget that life insurance is meant to protect our family if anything happens to us. And who likes to pay to have no benefit?
Is There Any Life Insurance With Associated Savings?
The answer is yes. There are life insurances that make it possible to turn part of the premium delivered to the insurer into a savings product. In practice, what you do is pay an amount that relates to the insurance premium itself and in case you do not use the insurance (if you do not die or if you do not have an IAD episode) see part of the premium reverted.
These types of products are products in which a particular insurance company shares the risk with its customers. If there is a claim, the insurer must pay a certain compensation. But without claims, it makes sense for the insurer to share this benefit with its client.
What If You Do not Want To Continue With Insurance?
You can always cancel the insurance but keep the value of the savings product that will yield an interest based on the premises of the contract. Normally, it will be a product with guaranteed capital and interest, but it is possible that there are other ways we recommend that you consult an insurance intermediary.
Other Insurance Features
As a rule, these savings insurance can be subscribed by people between 18 and 75 years of age and lasts up to 85 years. Yes. Even if you are retired, you can subscribe to this life insurance, which in practice represents a saving.
Does it make sense to have this product?
It depends. The answer depends on a set of factors. It depends on the premium you pay on this insurance and on insurance without associated savings (typically the former will be more expensive). It depends on the interest rates, any subscription fees and your specific needs. One last tip: Do not subscribe to this product just to benefit from the savings product as there are more interesting specialized savings products.