Independent Financial Advisor and Co-Founder of Affari Miei
January 15, 2024
If you are looking for information about insurance you have probably also heard of Intesa SanPaolo Private Programthe single premium life insurance offered by the famous Intesa SanPaolo banking group and which is designed to be both insurance and a low-risk investment.
Today we will analyze the product, trying to touch on all its features characteristicsincluding i costs and the payment of awardand at the end of the article you will also find mine opinions so that you can have a complete overview of the policy and can therefore make all the necessary considerations to then make a decision that is the best and most suitable for your needs.
Enjoy the reading!
This article talks about:
A presentation by Intesa SanPaolo Vita
To tell the truth, perhaps it is not even necessary to introduce you to the group that offers the product because it is one of the largest banking groups in Italy, but finding out about the institution is always better, so here we are.
Intesa Sanpaolo Life is the parent company of the Intesa Sanpaolo Vita Insurance Group and was created in January 2012 from the merger of EurizonVita, Intesa Sanpaolo Vita (formerly Intesa Vita), Sud Polo Vita and Centrovita Assicurazioni.
Since December 2014, the offer has been further enriched thanks to the acquisition of the Pension Funds previously managed by Intesa Sanpaolo Previdenza SIM.
Since December 2023 Intesa Sanpaolo Vita has also incorporated the skills of Intesa Sanpaolo Life, while creating a secondary office in Dublin, Intesa Sanpaolo Vita Dublin Branch.
They are in the business of offering to their customers insurance and social security products which include different solutions both in the investment and savings areas, but also in social security and protection.
Class I policies
This product is a branch policy I, or a policy that invests in a separate management: it refers to the investment method because the premium you pay will be channeled into a safe fund characterized by low risk, and which therefore invests in safe and low-risk instruments.
The product can undoubtedly fall into the category of contracts and safe investments.
If you want to delve further and better understand what I mean by separate management read here.
In this case Programma Private invests in the separate management called VIVADUE Fund.
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The features of Private Program
Private Program belongs to the type of branch I life insurance contracts and has a single premium.
In the event of the customer’s death, the company pays the designated beneficiaries the insured capital accrued on the date of notification of the death.
This capital will be composed as follows: the invested premium revalued up to the date of notification of death based on the returns of the separate management (net of management costs) and reduced by the effects of any partial redemptions.
Payment of the premium
The company guarantees the indicated service upon payment of a fee unique prize which is not less than €150,000, with a maximum amount of €5 million.
The premium is unique and therefore additional payments are not permitted during the contract.
The duration of the contract
The contract is a whole life therefore it coincides with the life of the insured.
Who is the product aimed at?
The product is aimed at people aged between 18 and no older than 86.
The costs of the Private Program
First of all I would like to point out that there is a fixed cost of €100 for the acquisition and administrative management of the contract.
The management fees amount to a fixed annual 1.30%, while if the gross annual return of the separate management exceeds the reference rate of 2.75% then the variable annual component of 25% of the difference, if positive, between the gross annual return is applied of the separate management and the reference rate of 2.75%.
The withdrawal
You can withdraw from the contract enters 30 days from signing the policy and, when this happens, the company and the customer are free from any contractual obligation.
Within 30 days of receiving the notice of withdrawal, the company will then refund the customer the single premium paid
The ransom
Now let’s see how you can ask for the ransom and what are the times and costs.
At least 3 months must have passed from the effective date of the contract and then the customer can terminate the contract by requesting either total redemption or partial redemption.
If asked the total redemption the company recognizes the customer with the insured capital accrued on the date of the redemption request, with the amount being equal to the invested premium revalued up to the date of the redemption request based on the returns of the separate management net of the management cost.
Il partial redemption however, it is only admitted if the amount to be redeemed is at least €5,000 and the remaining capital at the date of requesting partial redemption is at least €50,000.
It is good to remember that in case of total or partial redemption there are some costs to consider:
If less than three months have passed from the effective date of the contract then redemption is not permitted; From the third month and up to the day preceding the first anniversary of the contract, the cost to be applied is 2%; From the first anniversary until the day before the fifth anniversary the cost is 1%; From the day on which the fifth anniversary of the contract occurs the cost is 30 euros.
Tax treatment
The sums owed by the Company to the Customer or the Beneficiary cannot be subject to executive or precautionary action, except in cases specifically indicated by law.
Taxes relating to the contract are borne by the customer, the beneficiary and the entitled parties.
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Affari Miei’s opinions on Private Program
I think I’ve told you everything there was to say about the product in question.
Once the review is finished, we can then try to reason together and draw some conclusions that should help you make an informed decision for your investment.
First of all, I suggest you read the KID very carefully, as we have talked about all the characteristics of the contract, however we may have missed something and above all it is a good idea for you to independently analyze all the possible situations and above all every scenario that can occur.
Without a doubt it is a safe insurance given that it invests in separate management; I believe that this is a product suitable for investors who are looking for low or limited risk and above all I want to make things clear with you: you will not be able to obtain who knows what returns from a similar product.
In this regard, if you are looking for safe investments I invite you to consult this article where you will find many ideas to start investing in safe products without risking too much.
But we haven’t yet addressed the thorniest issue related to similar products: costs.
The costs are always very high when we talk about insurance and, you should know, they are the ones that have the greatest impact on your performance and therefore on the results you bring home.
If you are looking for other ways to invest, which are also more profitable and capable of giving you greater returns, I invite you to consult these resources.
Obviously I cannot give you a precise answer to the question of whether or not it is worth investing in this product as I do not know your personal and financial situation and I cannot afford to give you advice in this regard. What I advise you is to try to get as much information as possible about the product and all its features and above all to study and train yourself to be able to best approach the financial markets, with solid notions and the necessary awareness.
Before saying goodbye, I would also like to leave you with some useful resources to start your investment journey:
Good investments!
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