The amounts paid include costs, and 80% will be invested in the internal fund “Generali Opportunità Bond 2030” and 20% in the separate management “Royal Fund”.
To the duration
The contract is for whole life, therefore it coincides with the life of the insured.
Who is it aimed at?
General Objective Performance is aimed at investors who want to invest their money in the bond market and who have at least a medium time horizon with at least a medium-low risk profile.
We also recommend knowledge or experience at least of insurance investment products linked to both internal funds and separate management and the ability to sustain limited losses in the value of the investment.
Costs
Let’s now see what they are costsgiven that they are precisely the ones that have an important impact on the performance of your product.
The costs of entrance they amount to 0.10%, and are the costs you have to bear as soon as you subscribe to the product.
There are no costs involved exit if you disinvest before the recommended 6 years for holding the product.
The costs to keep an eye on are the management feesequal to 1.36%: this is the cost that is retained from the performance of the separate management.
Transaction costs, on the other hand, are 0.01%: this is an estimate of the costs incurred for buying and selling the underlying investments for the product.
The risks
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 and that the rest of the investment (in a small part) is intended for the bond market.
The recommended period is 6 years.
Revocation and withdrawal
You can revoke the proposal with a registered letter until Generali has released the policy.
The withdrawal, however, can be exercised within 30 days from when the policy was issued to you: the company is also required to reimburse you the premium paid less the costs of issuing the contract.
The ransom
You can also ask:
total redemption: the redemption amount is equal to the value of the contract on the date of request, net of costs. With total redemption the contract expires and any further effect ceases from the date of request;
partial redemption: in this case the redemption amount is obtained by applying the same criteria as for the total redemption. The redemption amount and the surrender value remaining after redemption must be at least €2,000.
The tax regime
Finally, let’s examine the tax regime.
Premiums from life insurance contracts are not subject 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 for IRPEF purposes, at 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 Generali Yield Objective
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 KID, as 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 a separate management and, for a part, in the internal fund made up of solid and sustainability-conscious bonds.
This makes the investment interesting and safe, therefore suitable for an investor who wants to see his savings grow, but who at the same time is not willing to risk too much and is not able to bear large losses.
If you are looking for safe investments though I also recommend you take a look at this articlewhere you will find various ideas to start investing in safe products, minimizing risks.
You will probably have guessed that this policy is suitable for you if you want an investment with little risk and are willing to obtain moderate returns and above all if you are interested in bond investments.
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 ETF, which are passively managed funds capable of offering optimal diversification and lower management costs than mutual funds.
Since there is no active manager taking care of the investment, but the fund passively replicates the performance of a benchmark, costs are significantly reduced. However, I believe that the best thing for you is to increase yours 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 guides to begin an investment journey that is as profitable as possible:
Happy reading and good investments!
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