Are you looking for information about Valorythe multi-class policy proposed by Genertellife?
Have you heard of this product or has your consultant proposed it to you, and so now you want to know more?
Then you are in the right place because today we will analyze the product together, trying to grasp all its aspects, and seeing costs, benefits e disadvantages of the policy, to then try to understand together if it is a product convenient for you or not.
Enjoy the reading!
This article talks about:
Two words about Genertellife
Before analyzing the policy, let’s start by seeing what theinstitute who proposes it.
Genertellife is the first direct life and pension company in Italy. It is, together with Gentelthe only direct Italian insurance hub capable of providing all services online and over the phone, starting from life insurance, moving on to non-life insurance and finally to social security.
It is part of General groupa multinational group present in over 60 countries, with 470 companies and almost 80,000 employees.
It is one of the largest and most important international insurance and financial companies.
We can consider it as a leading group in Italy, and its parent company is Assicurazioni Generali SpA, founded in 1831 in the city of Trieste.
The group’s core business is undoubtedly the life sector, where it is also the leader in Europe.
It is therefore undoubtedly an excellent, solid and reliable institution.
What are multi-line policies?
Now that we have made it clear that this is a solid and safe institution, we must try to move on to the product itself.
A multi-class policy is a policy that combines two types of policies, namely the Branch I and the Branch III.
Let’s see broadly what one does and what the other does.
The Branch I policies are those that include a separate management, and that offer the customer a certain security and guarantee on the invested capital. In fact, this is usually the “safest” part of the investment, which also guarantees solidity and greater reliability.
On the other hand, the Class III policies they are those that link their performance to the markets, therefore to their fluctuations, and allow for the achievement of better results and returns, however, in the face of running a greater risk.
They indeed invest your money in both internal funds that in external funds, and for this very reason they possess a different risk. It is precisely one of the causes of the complexity and high risk of this investment.
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Product features
Valory it’s a we mutilate policy with single premium and whole lifewhich provides for the payment to the beneficiary of a benefit in euro in the event of the insured’s death, which is determined on the basis of the revaluation of the sum that is invested in the separate management and on the basis of the trend in the value of the units of the internal funds in which invests.
It invests in ESG funds and allows you to protect your future and your purchasing power, since it allows you to deal with the effects of inflation.
This product is also completed by acomplementary insurance which is in fact mandatory and which we will analyze later.
Investment details
Now let’s see in detail what this policy invests in.
Valory allows you to choose between three different investment lines:
- Protected line: this line invests most of the premium in the Genertellife Gilfe Premium separate management, and for this very reason it is devoted to greater capital protection and is suitable for an investor who does not want to take too many risks. As a percentage, it invests 70% of the capital in the separate management and 30% in the protected Genertellife intent fund;
- Guided Dynamic Line: this second option instead allows you to automatically reallocate your investment over time, between separate management and an internal fund, in order to maximize returns and reduce volatility in the medium term;
- Dynamic line: the last option, on the other hand, is the riskiest, and is precisely designed for more expert investors, since it allows you to choose the allocation of the investment between the different divisions of separate management and internal fund, and takes place every six months. It allows you to invest by choosing between three different divisions, depending on the degree of risk you intend to run:
- 60% separate Gilfe Premium management and 40% internal Genertellife Dinamico fund
- 50% Gilfe Premium separate management and 50% Genertellife Dinamico internal fund
- 40% Gilfe Premium separate management and 60% Genertellife Dinamico internal fund
What are the performances?
The contract provides for a main performance in the event of the death of the insured, which consists of capital payment by Genertellife equal to the value of the contract on the reference day for the death, which must be increased by an amount equal to a percentage of the sum of the premiums paid, which is also identified on the basis of the age of the insured at the time of death according to these values:
- Age of the insured less than 50 years: 2.5%;
- Age of the insured up to 50 years: 10%;
- Age of the insured from 51 to 60 years: 5%;
- Age of the insured from 61 to 70 years: 1%;
- Age of the insured over 71: 0.15%.
L’additional amount in the event of death, it cannot in any case exceed 30,000 euros.
Contract options
What we have just analyzed is the main performance, but we must also consider some contractual options:
- Switch Service: provided that 6 months have passed from the effective date of the contract, and not before 31 May 2023, the policyholder who, during the conclusion of the contract, chose to invest in the dynamic line, can request to change the percentage distribution of his investment between the separate management and the internal fund, and can choose between the three divisions that are available in the dynamic line. A maximum of two switch operations can be performed in a year;
- Take Profit Service: it can be activated when the contract is concluded or during the contract, and it is an automatic transfer to the separate management, on a six-monthly basis, of the capital gain that has been realized by the internal fund.
Supplementary insurance
We talked about it before. It is about themandatory insurance which is in the contract.
It is connected with the death of the insured: if the death occurs as a result of injury (i.e. for an event due to fortuitous, violent, sudden causes) Genertellife pays the beneficiaries the main benefit plus a additional capital.
In addition, the additional capital is doubled if the death occurs due to a car accident.
The percentages of the capital paid referring to the sum of the premiums paid vary on the basis of the age of the death as follows:
- Up to 50 years: 50% for injury, 100% for road accident;
- From 51 years to 60 years: 25% for injury, 50% for road accident;
- From 61 years to 70 years: 10% for injury, 20% for road accident;
- From 71 years: 5% for injury, 10% for road accident.
Payment of premiums
The contract provides for the payment of a initial single premiumand any subsequent awards which can have a variable amount.
The initial single premium must have a minimum amount of 5,000 euros and a maximum amount of 400,000 euros, while the additional ones must have a minimum amount of 2,000 euros and a maximum total amount of 400,000, also including the initial single premium.
Subsequent payments are not possible before 31 May 2023, and at least 3 months must have passed from the effective date of the contract.
Duration
It is a contract a whole lifewhich therefore coincides with the life of the insured.
Who is this policy for?
All persons can be insured, except those under the age of 18 or equal to/over 85 years and 6 months.
It is designed for those who are looking for a way to invest while maintaining a medium / low risk.
Risk profile
The product is classified as level 2 or 3 out of 7 of the synthetic risk indicator, based on the investment line chosen by the policyholder. We are therefore on a medium/low risk level.
Costs
Now we have to analyze one of the most important parts of a contract, namely yours costs.
They are the ones that impact returns and which therefore somehow determine the result of your investment.
We have therefore come to a crucial part.
For more information, please consult the KIID.
There are no costs on the premiums, neither for the redemption nor for the contractual options.
The cost of yield separate management amount to 1.2% per annum.
As for i costs on internal funds instead I refer you to read the regulations of the funds themselves.
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Withdrawal
You can withdraw from the contract within 30 days of the conclusion of the same, by registered mail.
Redemption and reduction
You can request the total redemption o partial of the insurance, with a communication to Genertellife.
Il total redemption terminates the contract and deprives it of any effect until the request date is reached.
Il partial redemption cannot provide for an amount of less than 2,500 euros. It is important to know that after the partial redemption, the contract still remains in effect.
Opinions of Affari Miei on Valory
Now that we’ve finished ours analysis of the investment policy I can move on to give you my views on it.
Maybe you’ve already had a chance to read more similar content here on the blog.
If yes, you will have already understood that we are in the world of managed savings and that they are also a little complex instruments.
Since I have to give you my opinions, I’ll try to summarize my thoughts.
I personally find these products a bit complex, as they are hybrid products that try to do two things together, namely protect and invest.
This one specifically features a low riskso if you are not too accustomed to risk or you are not ready to take high risks you could give a little thought to this policy.
After all, also i management costs they are lower than the average for similar products, so this could be a plus when choosing a policy.
If you are evaluating this investment, however, I can tell you a few things first: first of all, try to think that if you are looking for protection, there are also the life insurance policieswhich are easier to understand.
If you want instead invest why are you looking for a economic return and you want to make returns, then I don’t think this policy may be the best solution for you.
You could look for other information and other more suitable tools, and above all think about the ETF, which are passive management tools that have really interesting management costs.
If you want to go deeper, here you will find all the information you need.
Before saying goodbye, I would also like to leave you these resources, which could be useful for you to start your investment journey:
Enjoy the reading!
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