Independent Financial Advisor and Co-Founder of Affari Miei
22 March 2024
If you are interested in insurance and policies, you will most likely have come across the product, among others HDI Protect tomorrowwhich is marketed by HDI Insurance and which is aimed at those who are looking for one periodic income For all life.
If you want to know more, and are interested in discovering all its features, all you have to do is continue reading where we will also try to investigate together the advantages they disadvantages and then we will analyze the costs and at the end you will find mine opinions.
Let’s start!
This article talks about:
A presentation by HDI Insurance
Usually before starting with the in-depth analysis of the product I try to provide some information on the institute that offers the product.
HDI Insurance was founded in 1881: it is a very old company and also for this reason rooted in the territory.
In 1997 the company became part of the Talanx group of Hannover, a large German insurance group.
HDI’s vision is based on the centrality of its customers as it wants to always be connected with the customer, in order to improve the quality of the offer and service.
If you are interested in obtaining further information on the institute I recommend you read here.
Is a class I policy safe?
HDI Protect Tomorrow is one class policy I.
If you’re wondering what it means, don’t worry because I’ll explain it to you right away.
This product in fact invests in one separate managementor in a safe fund that has a low risk profile, suitable for those who want to direct their money towards safe and not too risky investments.
In fact, if you are looking for capital protection, a policy of this kind could probably be right for you.
I believe that before investing it is good to know in detail what your money will be channeled into, therefore I invite you to learn more here.
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HDI Protect tomorrow: the features
This product is an insurance which allows you to have a periodic income for your entire life.
This is a valuable solution because it is capable of creating interesting incomes available at the chosen time and above all it is a simple and linear contract: as soon as you sign it you immediately establish the amount of the income, which will grow on the basis of annual revaluations.
The performances
There are two services provided by the contract:
Life benefit: a periodic allowance will be paid to the beneficiaries of a revaluable life annuity as long as the insured is alive;
Benefit in the event of death: if the insured passes away within the term of the deferral, an amount equal to all the net premiums paid and revalued will be paid, increased by any reduction in the premium provided for by the tariff. If the insured passes away during the period of payment of the annuity, an amount equal to the surrender value at the end of the deferral will be paid, increased by the annual revaluation quotas and decreased by the annuity installments already paid.
Payment of the premium
Now let’s get to the practical things and see how and how much you will have to pay.
L’minimum amount of the annual premium amounts to €600, while that of the single premium is €5,000.
The annual premium will be increased on each anniversary of the starting date of the contract based on the performance of the separate internal management of assets, called “future fund”.
The duration of the contract
The duration of the contract coincides with the life of the insured.
The duration of the deferrali.e. the period of time between the effective date of the contract and the date in which the right to receive the annuity accrues, is between a minimum of 2 years and a maximum of 40 years.
This must be chosen keeping in mind that the age of the insured at the signing of the contract must be between 18 and 75 years, while that of the deferral must be between a minimum of 50 years and a maximum of 85 years.
Who is it aimed at?
This product is designed for all people residing either in the Italian Republic or in the Republic of San Marino, who have an entry age between 15 years and 75 years.
As we said before, it is the product for you if you are interested in having one periodic income starting from a certain moment and for your entire life, for example to diversify your social security tools by supplementing your pension.
It is also suitable for you if you are interested in having significant liquidity with a single payment and are interested in using it to receive a lifetime income in exchange for a limited period of time.
The risk
Il risk profile for this product it is equal to 2on a scale ranging from 1 to 7.
This is a low risk, since we have seen that we are talking about a separate management which is characterized by a limited risk.
This risk indicator also assumes that the product will be held for 10 years, and the actual risk may vary significantly if you disinvest at an early stage.
Costs
Now let’s see what they look like costsor the most important part of an investment since they are precisely those that impact the final return.
I entry costs they are those that you have to bear when signing up for your investment: in this case they range from 5% to 8% of the single premium paid at the time of signing up.
I exit costs instead they refer to the costs that you will have to bear if you decide to exit the investment early but they are not foreseen.
Then we have the management feeswhich amount to 1% which is withheld from the annual return of the separate management, and other administrative costs which amount to 1.13% of the annual premium to cover the biometric risk.
They are not here transaction costswhich would be the costs incurred in buying and selling the investments underlying the product.
Instead we have one performance feewhich must be paid if the yield of the separate management exceeds 4%, and is equal to 0.02% for every 0.10% of this excess.
The costs whose details I have given you refer to the payment of the single premium.
For further details, or to check what the costs are for the constant or revaluable annual premium, I invite you to carefully read the KID which you can find on the official website.
Revocation and withdrawal
You can revoke the proposal until the contract is concluded. The request for revocation must then be sent either by registered mail or PEC.
If you want withdraw instead you can do it within 30 days of the conclusion of your contract.
Also in this case you can send either a registered letter or a PEC.
Within 30 days of receiving the notice of withdrawal, the Company will reimburse you upon delivery of the original policy and any appendices, the premium paid net of any taxes and costs of issuing the contract, quantified in the proposal at €25, as well as the part of the premium relating to the period for which the contract was effective.
The ransom
In case of non-payment of the premium and if at least 3 years of premium have been paid (if the contractual duration is not less than 5 years) or at least 2 years of premium (if the duration is less than 5 years), then the The insurance remains in force free from further premiums, for the reduced annual annuities to be paid in the event of survival of the Insured at the end of the deferral.
You can decide to terminate the contract early and request payment of the surrender value.
There are no costs foreseen for the redemption, while there are costs foreseen for the disbursement of the annuity, in a percentage amount equal to 1.25%.
The tax regime
Finally, let’s examine the tax regime.
Life insurance contract premiums are not subject to to insurance tax.
The premiums paid for death risk coverage, provided that the insured and the policyholder are the same or that the policyholder is a tax-dependent person, give the right to a tax deduction on the income declared by the policyholder to IRPEF purposesunder the conditions and within the limits established by law.
If only one component of the insurance premium is intended to cover the aforementioned risk, the right to deduction applies with reference to this component, which is specifically indicated by the Company. The tax treatment may vary due to future changes in the relevant legislation and depends on the situation of the contractor or beneficiary.
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Affari Miei’s opinions on HDI Protect Tomorrow
We have finally reached the conclusion of our review, and it is time to take stock and try to obtain an important opinion on this investment.
First, I suggest you take the time to thoroughly read the KIDas it may offer you additional details and crucial information. Although I have tried to give you a complete picture, consulting the official documents is always advisable to avoid making wrong choices.
As we have seen, this policy invests in one separate managementtherefore offering the possibility of growing your capital through a prudent approach to investments.
This allows those who choose it to enjoy a relatively safe and low-risk investment.
In fact, we are talking about separate management, which will allow you to obtain a periodic income. If you are looking for this then the product could be for you.
If you are looking for safe investments But I also recommend you take a look at this articlewhere you will find various ideas to start investing in safe products, minimizing risks.
You’ve probably guessed that this policy is right for you if you want an investment with little risk and are willing to earn moderate returns.
However, if you are looking for a more significant increase in capital or higher returns, then this product may not be suitable for you.
In this case, I might suggest you evaluate other solutions: here on Affari Miei we often talk about ETFwhich are passively managed funds capable of offering optimal diversification and lower management costs than mutual funds.
Since there is no active manager who takes care of the investment, but the fund passively replicates the performance of a benchmark, the costs are remarkably reduced.
Before concluding, I would also like to suggest that you deepen your financial knowledge: those who know and are aware of what they are about to do are undoubtedly more immune to risks!
To this end, I invite you to consult these guide in order to begin an investment journey that is as profitable as possible:
Happy reading and good investments!
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