Independent Financial Advisor and Co-Founder of Affari Miei
February 6, 2024
If you have a son no doubt you are thinking about how to protect him and how to set aside money to give him a better future and Zerodiciotto Reale it might be right for you.
Today we will see all the together characteristics of the product, focusing on the investment and costs.
At the end of the article I will also provide you with mine opinions.
Let’s start!
This article talks about:
Reale Mutua: a presentation
Reale Mutua Assicurazioni is an Italian mutual insurer and is the head of Reale Group. It represents the largest Italian company established in the form of a mutual company, present on the national territory and is based in Turin. It has one of the highest solidity on the market, with a solvency ratio that stands at 346.5%.
Its business concerns the offer of insurance services and innovative solutions for businesses, individuals, families and professionals.
Invest in separate management
Zerodiciotto Reale invests in separate management of Reale Uno.
This means that the performance of this contract are linked to the annual revaluations of the Reale Uno fund.
This fund has a low risk appetite, and is aimed at the growth and preservation of the invested capital over time, as well as the adequate diversification of the assets and their issuers, with a view to containing risks.
But what is separate management?
Separate management is an investment suitable for those who do not feel like risking too much, for those who want capital guarantee and for those who perhaps are not very familiar with the financial markets.
This means that the money is invested in a safe fund, which does not make you take too many risks and which allows you to obtain returns while still having a sort of security.
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Zerodiciotto Reale: here are the characteristics
If you are a parent or a caregiver for a child, then know that this is a useful product to help him realize his future.
Zerodiciotto Reale it is accessible as you do not need to invest a lot and above all it rewards the successes of your child or the child to whom you will direct the product as upon graduation or graduation, the child will receive a bonus of 10 and 15%.
Let’s see them performance:
Fixed term annual premium guarantee: upon contractual expiry it provides for the payment to the designated beneficiary of the accrued capital, possibly increased by the maturity bonus;
Single premium guarantee: the insured is free to make supplementary payments with a single premium starting from the sixth month following the contractual start date as long as the policy is in force;
Completely optional warranty: if the insured were to be affected by total and permanent disability and the event occurs before the insured’s 65th birthday, then the guarantee of exemption from the payment of the residual annual premiums from the date of reporting the state of reactive disability will be activated to the basic policy;
Expiration option: the insured can request that the contractual expiry be deferred by 7 years, provided that the policy is up to date with the payment of premiums.
The prize
Let’s see how you will have to pay the award.
The contract provides for the payment of a annual premium, annually revaluable for the entire duration of the contract and in any case no later than the death of the Contracting Party/Insured. The minimum premium amount, for the fixed-term guarantee, is 600.00 euros, the maximum is 12,000.00 euros.
The policyholder can also pay the annual premium in several installments, choosing a monthly, quarterly or half-yearly split.
After 6 months from the start and if the contract is in order with the payment of the annual premiums, then you can pay single supplementary premiums of an amount not less than €100 and not more than €5,000.
Who is the contract addressed to?
The product is aimed at natural persons who have a risk profile that is oriented towards protection of the capital and who need to satisfy the need for a finalized accumulation in favor of a child or grandchild with a pre-established payment plan and what they intend to stick to until maturity.
To subscribe to the product, however, you do not need particular knowledge of financial instruments.
Risk profile
The risk of this product stands at 3 on a scale ranging from 1 to 7, that is, we are at a fairly low risk as we are investing in a separate management, as we saw at the beginning.
The risk indicator also assumes that the product will be held for 19 years, and it is important to know that the actual risk can vary significantly if you disinvest at an early stage and the amount repaid could also be lower.
What are the costs of Zerodiciotto Reale?
Let’s see what they are costs of the product, because costs are the most important thing that must be considered since they impact returns.
The issuing costs of the contract are 15 euros, while the proportional loading of the net premium is 4.50%.
I costs for fractionation of the prize amount to:
0.50% for six-monthly splits; 1% for quarterly splits; 1.50% per monthly split.
The management fees are equal to 0.90% per year.
Revocation and withdrawal
Before the conclusion of the contract, the contractor may also choose to revoke the proposal, on average recommended. In this case, the entire amount of any premium paid will be refunded within 30 days of receiving the notice of revocation.
Il withdrawal instead it can be carried out within 30 days of the effective date, always by registered mail.
The ransom
You will be able to get the ransom after 3 years from the date of commencement and if you have paid at least the first 3 annual premiums.
The total redemption obviously determines the dissolution of the entire contract, while the first partial redemption of each insurance year can be carried out without applying any penalty on an amount not exceeding 20% of the last revalued capital.
Tax treatment
Prizes are not deductible for IRPEF purposes.
Life insurance premiums are not subject to any tax, while the tax regime may vary depending on the policyholder’s move of residence to another EU country.
The premiums paid for the complementary permanent disability guarantee are subject to tax at the rate of 2.50%.
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Opinions of Affari Miei on Zerodiciotto Reale
We finished our analysis and saw all the characteristics of the contract together, focusing on the most delicate points.
Now we can move on to the conclusions and I will give you my opinions: I will give you a general discussion because obviously I don’t know your personal situation nor your financial situation, so I don’t have enough information to be able to give you advice.
Zerodiciotto Reale invests in a separate management, so we are practically in the world of safe investments.
Safe investments obviously mean lower risks but also lower returns because in investments as in life, if you don’t take risks you can’t hope to get much.
For this reason I can offer you two alternatives:
If you want to know more, know that I don’t really like these products because I think they are very complex and sometimes they can also have hidden costs.
As tools I can suggest them to you ETFare passively managed instruments that replicate the index.
If you want to learn more you can read here.
Since the product is aimed at children or at least children to whom you can leave money for a better future, I can also tell you to try to choose a PACor a savings plan that allows you to set aside a certain amount every month which can then go towards building the nest egg for your child and his future.
About that I recommend you take a look here.
Before I let you go, I would also like to leave you with some guides that could be useful for starting your investment journey in the best possible way:
Happy reading and good investments!
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