Life insurance
The classic of insurance is, without a doubt, the life insurance. With insurance of this type, the policyholder pays a premium for, in case of death, disability or serious illness , to receive an economic compensation established in the policy for the insured capital. This is the classic insurance of, for example, freelancers and heads of families who wish to protect their families financially in the event of an unexpected event.
The premiums of these insurances vary with the age of the insured and allow the hiring of high capital, which allows us to maintain our standard of living and / or that of our families in the event of any of the guaranteed contingencies.
Life insurance is risk products , so you pay a premium to insure yourself against the contingencies detailed in the policy, within the established period. Therefore, the premiums paid do not generate or constitute any savings, since they are established solely to cover the risks indicated.
Life Insurance-Savings
Life insurance is a savings product, whose guaranteed capital is the result of the profitability generated by the periodic payment of certain amounts. The insured can either wait for the term set in the contract to expire, thus charging the benefit, or collect the value generated up to that moment, thus exercising the right to redemption.
The rescue is a right that the law grants to the policyholder, in certain life insurance, which consists in the possibility of obtaining in advance all or part of the compensation that corresponds to charge, proportionally to the table of values provided in the policy .
The savings plan
The savings plan , perhaps along with life insurance, is the other "classic" of insurance companies. It consists of an investment plan in which, regularly, the policyholder enters amounts of money and these, as a piggy bank, generate yields over time. The savings plan has a lot to do with pension plans, since it precisely shares with them a great similarity in terms of purpose: the person who enters money usually does so in order to obtain an economic complement for the day, for example, his pension.
Now, there are two things that radically differentiate the savings and pension plans: their duration and their taxation . Unlike pension plans, a savings plan is not necessary to link it to retirement, its duration is stipulated a priori in the contract (5, 10, 20 or as many years as you like). And as far as taxation is concerned, the savings plans are taxed in income tax and may or may not have a tax exemption depending on the specific product, while the benefits received by the pension plans are taxed as income from work.
Is there a possibility to combine both products? Of course! This is what is known as life insurance savings.
Life insurance savings
Saving life insurance is, precisely, the union of a savings plan and life insurance . They allow for periodic contributions, modify or pause if you need it, but they are also products that offer liquidity at all times since the capital can be partially or fully recovered and if a death occurs while the policy is in force, the capital saved is also charged, increased by the additional profitability generated. The capital of these products is guaranteed by the insurance compensation consortium. The savings accumulated in this insurance can be recovered once in the form of capital, or in the form of periodic payments in the form of a life annuity while the beneficiary of the insurance lives.
There are different models of life insurance savings (PIAS, SIALP, ...), which really are "evolutions" of the classic savings plans, with more favorable taxation than the generic savings plan. Another example is the Insured Pension Plans (PPA), which have the purpose of contributing to a pension tomorrow and guaranteeing the capital reached at that date with absolute security, with stable profitability and better tax treatment of money, that allows to deduct part of the contributions made to the plan.
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