Co-founder of Affari Miei Independent Financial Advisory Company
October 27, 2023
If you are looking for information on Catholic&Protection After Us you are in the right place because today we will analyze all of them characteristicsstarting from payments and passing through i costs.
At the end of the article you will also find the opinions Of My business about the product, and we will try to understand together whether it is a useful product for your investment or not.
Let’s start!
This article talks about:
Cattolica Assicurazioni: a presentation
Before starting with the analysis of the product and all its main characteristics, we usually expose some information on the institute that offers the product.
So let’s now look at some information about Cattolica Insurance.
Cattolica Assicurazioni Spa was founded in Verona in 1896 and is one of the main players in the Italian insurance market. Since November 2000 it has been listed on the Milan Stock Exchange.
Its customers are around 3.5 million and the Group also has 1,360 agencies spread across the entire Italian territory, both in large and small towns.
The Group’s activity is inspired by the Social Doctrine of the Church and a heritage of values such as transparency, correctness, ethics; favors the insurance protection of people, families and productive entities, with particular attention to the territory and the social and economic contexts in which they operate.
It is one of the longest-standing cooperative companies, so essentially we rely on a safe institution.
Separate management
This product invests in separate management: in fact, if you stop to read the KID carefully you will see this word written several times.
But what is it separate management?
The separate management it is a fund created exclusively by the company, which is managed separately from other activities.
This type of product is safeprecisely because it invests in tools that are basic little risky. In fact, if you choose this product you will be able to run limited risks, and you will also be able to count on certain returns, more than those you would have if you chose another riskier product.
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Cattolica&Protezione After Us: the Characteristics
This product is whole life insurance with a single recurring premium and additional single premiums.
L’objective of this product is to obtain the insured capital which has been revalued from year to year, thanks to the results obtained from the separate management.
Separate management for Catholic&Protection After Us is RI.SPE.VI: its objective is to preserve capital and make it grow over time, without running too much risks.
But what are the performance?
In the event of the death of the insured, the product provides for the payment to the beneficiaries of the capital revalued up to that moment, and will be increased by a variable percentage depending on the age of the insured at the time of death (from 40% to 0.50% ).
I attach one here table which reports the various percentages related to age:
Contractual options
The contractor can choose, when signing the contract, that the redemption value or the benefit in the event of the insured’s death are paid through the provision of a revaluable annual annuity, which can be paid in deferred installments.
It is important to know that the annuity it cannot be redeemed during the payment period and the designated beneficiary of the benefit cannot be changed.
The prize
A payment is expected single recurring premiumthe amount of which is set at the time of signing the insurance proposal.
The single premium can be paid either annually, semi-annually, quarterly or monthly.
L’minimum amount of the single recurring premium cannot be less than:
€1200 for single recurring premiums on an annual basis; €600 for single recurring premiums with six-monthly periodicity; €300 for single recurring premiums with quarterly periodicity; €100 for single monthly recurring premiums.
If you choose the monthly periodicity, however, you will have to pay three months’ premium in advance upon signing the contract.
At any time the contractor can carry out further payments in the form of additional single premiums, of non-predefined amounts and frequency. The minimum amount of additional single prizes is 500.00 Euros.
Who is the tool aimed at?
The product is aimed at those who are looking for a growth constant of his investment, over a long time horizon.
The goal, as we have already seen, is to to preserve from year to year the capital is revalued, from possible future negative trends.
To be able to access this contract, the insured must prove the relationship of kinship (provided it is within the fourth degree) or affinity (within the second degree) or must demonstrate the role of guardian/curator towards a person affected by the syndrome of Down syndrome, or from autism or other forms of disabilities as defined by Article 3 of law 104/92.
The risk profile of Cattolica&Protezione Dopo di Noi
Il risk for this product it is equal to 2on a scale ranging from 1 to 7, meaning lower risk and higher risk.
In this case the risk is therefore a low riskand refers to the instruments in which it invests, which are “safe”.
The costs of Cattolica&Protezione Dopo Noi
We now come to one of the most important parts to consider when analyzing an investment product.
Costs should be considered carefully before making an investment decision.
In this case, let’s see what expenses you would have to bear:
Entry costs: 1.24% at the time of subscription of the investment;
Exit costs: 0% to be incurred at the end of the recommended holding period;
Management costs: 1% that are retained each year to manage investments.
Il detention period recommended is 4 years.
Revocation and withdrawal
You can revoke the proposal before the effective date of the contract, by sending a communication to the company headquarters.
Within 30 days of receiving the communication, the company must reimburse the policyholder the premium paid.
Termination of the contract
The resolution of the contract is not foreseen.
The ransom
When one year has passed from the effective date of the contract you can redeem the contract early, collecting a capital equal to the accrued redemption value.
Il total redemption will be equal to the revalued capital up to the date of the redemption request based on the revaluation amount attributable to contracts with annual recurrence in the month of the redemption request, net of redemption costs.
If instead you ask the partial redemptionthen you will be able to exercise the right even if the redeemed capital is not less than €1,200 and the residual capital is not less than €1,200.
The tax regime
The last part we need to look at is the tax treatment.
Premiums relating to the main benefit are exempt from insurance tax.
I award that are paid are not deductible or deductible, except in the case where the guarantee covers the risk of death: in this case there will be a deduction from personal income tax.
The sums paid are also exempt frominheritance tax.
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Opinions of Affari Miei on Cattolica&Protezione Dopo Noi
We have reached the end of the analysis of the contract, so now we can try to draw our conclusions.
Let’s start with one thing: we will not refer to this product in particular, but rather we will try to make a general discussion on this type of policy.
This policy invests in one separate management: it is therefore configured as a safe investment, which does not promise high returns, but rather a return that is certain.
In fact, separate management can guarantee you a certain level of security, thanks to the low risk profile.
This policy is designed for those who have a child or relative with a disability, therefore to protect them once the parent or guardian is no longer there.
The main problem with this contract is not so much its purpose, but i costs and the lack of transparency of the product.
If you are looking for an investment that can earn you returns, this is certainly not the product for you. In this case indeed I recommend you read here to find some solutions suitable for you.
Regarding this product, I cannot tell you whether it is a suitable tool for you or not, since I do not know your personal and financial situation, and therefore I cannot know whether you are looking for this or not.
It is also true that this policy has advantageous contractual conditions: the costs are relatively few and lower than others Class I policiesFurthermore, the capital guarantee is combined with the minimum return guarantee.
Let’s say that the correct strategy to protect the future of a person with disabilities should be tailor-made, starting from the situation of that specific person, and integrating various savings tools together. Blindly relying on a single product packaged by one company is unlikely to solve the problem.
Naturally, the final evaluation is up to you alone: in this regard, the final advice is to train and study.
Before saying goodbye I also want to leave you some guide useful for starting your investment paths, the ones best suited to you:
Happy reading and good investments!
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