Co-founder of Affari Miei Independent Financial Advisory Company
30 October 2023
If you have heard of Poste Italiane’s insurance solutions, it is very likely that your consultant has proposed Poste Progetto Dinamico New, the multi-line life insurance contract in mixed form, with profit sharing and unit-linked.
This product is designed to allow the investor to realize the life projects he cares about over time by investing his savings.
If you are interested in this product, all you have to do is continue reading the review, as together we will analyze all the characteristics of the contract in question, and then I will provide you with my opinions about this product.
Enjoy the reading!
This article talks about:
A few words about Poste Italiane
Before starting with the analysis of the product I usually want to give you some information on the institute that offers it.
Poste Italiane does not need much introduction: it is the largest infrastructure in Italy, active in the correspondence and logistics sector and in financial and insurance services.
With 159 years of history and 12,700 post offices, it represents a unique reality in Italy in terms of size and recognisability.
On 27 October 2015 the company was listed on the stock exchange.
The insurance service I am about to tell you about is offered by Poste Vita, the Italian insurance company, belonging, with Poste Assicura, to the Poste Vita Insurance Group, entirely controlled by Poste Italiane.
It was founded in 1999 and in 2010 it became the leading insurance company in Italy in terms of premium collection. Also in 2010, the Poste Vita Insurance Group was born.
In terms of the solidity and security of the institute, we therefore have nothing else to add, you can rest assured.
Is Poste Progetto Dinamico New safe?
As you have seen, the institute that offers the product is safe, but the specific product itself is not necessarily safe. Let’s see the type of management that will be applied to the product to try to understand if your investment can be considered safe.
Poste Progetto Dinamico is a multi-class contract (Class I and Class III).
Branch I contracts are linked to separate management, while Branch III contracts link their benefits to units of collective savings investment schemes or to a stock index or other reference value.
In this case Poste Progetto Dinamico New links its services to a Separate Management called Posta ValorePiù and to the value of the shares of an Internal Insurance Fund available between: Poste Vita Progetto Dinamico and Poste Vita Objective Sustainability.
The Separate Management style guarantees greater investment security, as it is oriented towards low-risk instruments such as government bonds or corporate bonds.
The part linked to the shares of an Internal Fund, however, makes the investment a little more risky as it is subject to the performance of the financial markets. The risks are consequently those typical of an investment, i.e. there is no certainty of a guaranteed return or even a guarantee of repayment of capital.
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Product features
Now we can finally move on to analyzing the characteristics of the product.
How the product works
Poste Progetto Dinamico New is a mixed (multi-line) life insurance policy.
It provides for the investment according to the methods we will see later, and an insurance benefit in the event of death: upon the hypothetical death of the policyholder, the capital is paid to the beneficiaries designated by the policyholder.
The product is designed to invest and therefore obtain capital to carry out important projects. It is aimed at clients characterized by even basic knowledge and experience of the markets and financial instruments and by a low or medium-low risk propensity, who intend to seize the return opportunities offered by the fund over a long-term time horizon. chosen insurance company, whose exposure to the financial markets varies depending on the investment combination chosen.
There are age limits: the contract can be signed by those who are at least 18 years old and a maximum of 80 years of age. Furthermore, the policyholder must also be the insured person.
The duration of the contract is equal to 15 years.
The investment
Being a mixed contract, during the consultancy phase it is possible to choose between the 5 different predefined target combinations available, which present a different mix between branch I (Separate Management) and branch III (Internal Insurance Fund).
The 5 different combinations they are structured in this way with regards to the distribution of invested capital:
Target combination 1: 70% separate management and 30% internal insurance fund; Target combination 2: 60% separate management and 40% internal insurance fund; Target combination 3: 50% separate management and 50% internal insurance fund; Target combination 4: 40% separate management and 60% internal insurance fund; Target combination 5: 30% separate management and 70% internal insurance fund.
Furthermore, thanks to the Poste Vita Objective Sustainability Internal Insurance Fund, the policyholder has the possibility of directing their financial choices also taking into account ESG (Environmental, Social, Governance) issues.
regarding the environmental, social and governance impact of the underlying investments.
Payment of premiums
When you subscribe to the product, you are expected to pay a single premium which must not be less than 5,000 euros nor more than 2,500,000 euros.
At the start the premium is invested in the starting combination which provides for 100% allocation in the Separate Management. Subsequently, switches are made (to which no cost applies) with a constant amount to make the investment according to the combination chosen from the 5 present at the time of signing the contract.
In addition to the single premium, it is possible to activate a recurring premium plan, which must be between a minimum of 50 euros and a maximum of 400 euros for the monthly split, and a minimum of 600 euros and a maximum of 4,800 euros for the annual split . Unlike the single premium, they are reinvested directly in the predefined Target Combination.
To the duration
The contract has a duration of 15 years. It expires upon the death of the insured, and furthermore there is no provision for suspension of the contract.
Insurance benefits
Let’s take a look at the benefits guaranteed by the contract:
Benefits in the event of life at maturity: if the insured is alive, Poste Vita liquidates the insured capital invested entirely in the separate management on the maturity date, following the final gradual reallocation; Benefits in the event of death of the insured: in the event of the death of the insured, the capital will be paid to the beneficiaries designated by the policyholder, and will be given by the sum of the insured capital invested in the separate management and the equivalent value of the shares assigned for the part of the invested capital in the internal insurance fund; Coupon option: this option can only be activated at the time of signing the contract, and consists in the liquidation of the overall annual performance, through the payment of a coupon, provided that the residual amount in the policy is at least 25,000 euros and that the performance is positive;
Voluntary switches: once the target predefined combination has been reached, the contractor can modify it by transferring the amount to one of the 4 available target predefined combinations. Switches are not permitted in the last 18 months of the contract term.
Costs
One of the parts to pay attention to is certainly the cost statement. In fact, the expenses you have to bear inevitably impact your returns, so they must be monitored and considered carefully.
To begin with, let’s see from the cost statement what the expenses are to be incurred:
Issuance costs for the contract: not foreseen; Cost on each recurring premium: 1.50%; Annual commission withheld from the performance of the Separate Account: 1.40%; Annual management fees of the Internal Insurance Fund: 1.60% of the comprehensive net value of the fund; Costs for total or partial redemption: not foreseen; Costs for coupon options: not expected.
As you can see, management commissions must be paid for both the Separate Management and the Internal Insurance Fund, and this ends up in the motivation of managed savings.
I also attach the table that represents how much impact costs have on performance per year:
Early redemption
Redemption, whether total or partial, is expected, provided that at least 30 days have passed from the effective date.
The total redemption has no cost and the policyholder will receive the Insured Capital of the Separate Management and the equivalent value of the shares held in the Internal Insurance Fund.
With total redemption, the contract is considered extinguished and can no longer be reactivated. The policyholder must also take into account that he may also receive a settlement of an amount lower than the invested premiums.
Partial redemption, however, can be exercised if the minimum amount is equal to 500 euros, and if the minimum residual amount present on the contract is at least 5,000 euros after redemption. Even partial redemption has no cost.
Revocation and withdrawal
The contract proposal can be revoked by registered letter before the premium has been charged.
If, however, you have realized that the contract is not what you thought, or that it does not give you what you expected, you can exercise the right of withdrawal.
The withdrawal can be exercised within 30 days of the conclusion of the contract.
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Opinions of Affari Miei on Poste Progetto Dinamico New
Having reached the end of the discussion on the product, and after having seen all its features, we can draw conclusions and I can tell you my opinions.
If you’ve already read this other reviews Maybe you already know what I think about similar products. I won’t hide from you that I personally don’t like these products very much.
I’m talking to you about products in general, so not about Posta Dynamic Project New specifically, or Poste Italiane products. These products are designed to make money for the institution that offers them, in fact the consultants are almost obliged to offer these products, and, if you have followed the review carefully, you will have realized that they do not have such clear advantages for you, that is for the client.
There are other tools that offer the same things, and that do so at much more advantageous prices.
This product then combines insurance with an investment: I find this type of “hybrid” product not very functional. If you want to insure yourself because you are interested in taking out insurance, you could, for example, opt for a simple death policy, which protects you and your loved ones, while if you are instead interested in investing, you could look around and find many interesting instruments, such as ETFs, which they allow you to invest by taking advantage of the advantages of passive management and therefore significantly reducing management costs.
If, however, you were attracted to this product because you are afraid of not having enough information, and therefore you are afraid of not being able to make and undertake an investment independently, then I leave you some resources here that can be useful for you to study and train yourself. , and consequently to operate in a future of investments in an informed way, knowing with certainty where your money is invested!
To get started, you can read these guides:
Enjoy the reading!
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