Co-founder of Affari Miei Independent Financial Advisory Company
28 September 2023
Are you looking for information on Vittoria InvestiMeglio Valore GS policy proposed by Vittoria Insurance?
If so, know that you are in the right place because today we will see all the together characteristics of this product, its advantages, disadvantages and risks and at the end of the article you can also find mine opinions about this investment, to better understand whether it is a convenient investment or not.
Enjoy the reading!
This article talks about:
A few words about Vittoria Assicurazioni
Before proceeding with the analysis of the product, I usually give a brief overview of the institute offering the contract itself, to get a broad idea.
Vittoria Insurance operates in the risk sectors and boasts long experience, gained from 1921 to today.
It deals with the insurance field for protection of people, families and companies.
This is a solid company that can count one widespread distribution network. If you choose this company you will be able to count on the competence and above all on the experience of insured people who work to satisfy customer needs and to find the best solutions to people’s protection and safety needs.
Since 1988 the company has been listed on the Milan Stock Exchange.
Just to give some numbers, in 2013 it exceeded the goal of having 400 agencies throughout the Italian territory.
What is separate management?
Vittoria InvestiMeglio Valore GS links its performance directly to the separate management, which is able to ensure you obtain a certain return year after year.
This type of investment is well suited to an investor who is not familiar with the financial market but who wishes to invest their savings.
The capital you choose to invest is directed towards separate internal management, in this case it is the Vittoria fund Objective Returnthe return obtained from which derives from the annual revaluation of the capital owed to the insured.
If you want to learn more about separate management you can do so here.
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The characteristics of Vittoria InvestiMeglio Valore GS
This product is a low risk investmentcapable of guaranteeing an income and at the same time financial risks that are very low.
The contract offers the recognition of the capital in the event of the death of the insured during the contractual term, while in the event of the insured’s life the capital will be recognized upon expiry of the contract.
The performances
Since this is a single premium mixed life insurance contract, it provides two types of benefits and an option which I will explain to you later.
Here are the performances:
Life benefit: upon expiry of the contract the company pays to the designated beneficiaries the greater amount between the capital revalued up to the expiry date and the initial insured capital;
Benefit in the event of death: in the event of death, however, the company pays to the beneficiaries designated in the policy the greater amount between the capital revalued up to the date of death and the initial insured capital.
L’option that I told you about before refers to the conversion into annuity upon expiry of the contract: the contractor can in fact choose to convert the capital accrued net of taxes in one of the following forms:
Revaluable life annuity as long as the insured is alive;
Certain income for 5 or 10 years and subsequently for life as long as the insured is alive;
Reversible annuity and payable until the death of the insured and subsequently reversible in favor of a previously designated person.
The prize
Il award And uniquetherefore it must be paid in a single payment.
Furthermore, the premium paid does not coincide with the invested premium, because the premium paid does not contribute to the formation of the capital that will be paid in the event of the insured’s death.
There are some limits: the minimum prize must be €10,050 while the maximum prize must be €1 million.
Who is the contract addressed to?
The contract is aimed at customers who wish to pursue the objective of capital growth in medium/long termwith a low or medium-low risk appetite.
In fact, this product is suitable for you if you do not have a great knowledge of the financial markets but are still interested in investing in products other than government bonds and bonds.
If you want to subscribe to this product you must be at least 18 years old and no more than 80 years old.
The risk profile
For this contract the risk profile stands on level 2 on a scale ranging from 1 to 7, so we are faced with a low risk.
We obviously remember that the risk indicator is indicative, because this product could still suffer monetary losses due to movements on the market or due to the company’s inability to pay the amount due.
What is certain is that, since it is a product aimed at prudent investors who are not accustomed to risk, the possibility of not seeing 100% of the capital returned is reduced.
Costs
Let’s now analyze the part of the costs which is always the one that deserves greater attention. For this reason I invite you to consult the KID carefully and to focus on all types of costs before proceeding with your investment, just to make sure you don’t make mistakes and above all that you don’t face significant losses.
Il detention period recommended is 10 years.
I entry costs they stand at 2.50% of the amount paid at the time of subscription, net of the fixed charge of €50.
The annual cost impact after 10 years is 0.3%.
I exit costs however they are not applied if the product is held up to the recommended period, i.e. 10 years.
The management fees instead they are 1.8% of the value of the investment per year, and are effectively the costs you owe to the manager to look after your investment.
Some are not applied for this product performance fees.
The costs for the provision of the annuity will be those in force at the time of exercise of the option and will be regulated through the information set relating to the option contract.
Revocation and withdrawal
Until the contract is concluded, you will always have the right to revoke the proposal to issue the same without being charged any cost.
It will only be sufficient to notify the company by registered letter.
You will also be able to withdraw from the contract within thirty days from the date on which the contract is concluded, always by communicating to the company by registered letter.
The contract is concluded when the company has accepted the proposal, provided that the relevant premium has been paid.
The withdrawal has the effect of freeing both parties from any obligation deriving from the contract. Furthermore, within thirty days of receiving the communication, the company will refund any premium paid.
The ransom
The policy can also be redeemed, either totally or partially:
For the total redemption we will have a liquidated amount before taxes which will be equal to the insured capital revalued annually up to the date of the redemption request, and will be reduced by the penalty based on the years that have passed from the effective date; For the partial redemption instead the contract provides for the application of costs based on the years that have passed from the effective date and can be redeemed partially as long as the requested amount and the residual capital amount are not less than €5,000.
If you decide to redeem you should know that you may also get an amount lower than the premium paid.
Let’s see now costs. During the first year, redemption is not permitted; if you request redemption during the second year you will have to pay 3%, during the third year 2%, during the fourth year 1% while after the fifth year there are no costs.
Furthermore, for each type of redemption and at any time there will be a fixed cost of €50.
The tax regime
The last part that we analyze together is the one relating to tax treatment.
The premium you have chosen to pay in the contract is not subject to any type of tax and does not give the right to any tax deduction.
In the case of partial surrender, the aforementioned substitute tax is applied taking into account the relationship between the value of the policy subject to partial surrender and the total value of the policy.
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Opinions of Affari Miei on InvestiMeglio Valore GS
Having reached the end of our discussion, we now just have to take stock and above all try to understand whether it could be a useful and profitable investment for you.
It is a’mixed revaluable insurance which invests in separate management.
The separate managementas we saw at the beginning of the analysis, is a safe investment with very low risk, which allows it to adapt well to the profile of a prudent investor.
One thing I have to warn you about, however, concerns the returns: if an investment has a low risk profile, you will undoubtedly not be able to expect very great things, that is, you will not be able to expect stellar returns.
So if you are a prudent investor who does not want to take risks, know that the returns you will get cannot be excessively high.
About that, I invite you to consult this resource that deals with safe investments: here you will find a list of investments with relatively low risk from which you can choose.
Personally I can’t give you a clear opinion on this tool, meaning I can’t tell you for sure “yes, invest” or “no, don’t invest” because I don’t know your financial and personal situation in detail.
What I will do now is a wide-ranging reasoning, relating to the characteristics of the contract itself and above all which tries to capture the possible implications of an investment in this sense.
Personally I consider this an investment complex and not entirely high-performance, as I think there are tools better suited to meeting your needs.
I’m not telling you that this product isn’t good or that it’s inconvenient, also because I repeat that I don’t know your personal situation.
I’m simply with you “warning”: similar products present some critical issues and, above all, have considerable costs which do not allow maximum returns to be obtained, which in themselves are not exciting.
Furthermore, sometimes a similar contract aims to want to do several things at the same time, and in the end risks not doing any of them well.
If you have had the opportunity to read other content here on the blog, you may have already come across some resources that deal with passively managed funds, namely ETFs.
Being an independent investor, I prefer these tools because they allow me to obtain interesting returns at low costs (thanks to passive management) and above all they prove to be effective and efficient investments.
I hope that this guide has helped you to clarify all the features of the policy and that it has dispelled all your doubts.
Before I let you go, however, I would like to leave you some things guide which could be useful to start your investment journey in the best possible way:
Happy reading and good investments!
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