Capitalized insurance is an option that is increasingly in demand by insurance intermediaries. In these turbulent times, this product is designed to monetize personal and/or household savings in the medium and long term so that you can manage your finances more easily.
Among the wide options offered, both capitalizable insurance and savings and retirement plans, the famous ppr stand out. But did you know that compared to PPR, for example, capitalized insurance gives you easier redemptions, as well as greater freedom to invest capital?
Find out the difference between these savings plans and the key benefits of making funded insurance your first choice.
Do you know what capital insurance is?
Capitalized insurance corresponds to a financial product that guarantees clients the opportunity to start their own savings, as well as monetize existing capital.
This amount can be invested in a single or recurring payment within a frequency previously defined with your insurance intermediary. At the end of the contract, your estate will correspond to the amount originally deposited and the products purchased during that period.
3 Advantages of capitalized insurance for OSR
PPR has long been the preferred choice for client retirement plans due to the inherent tax benefits. Things are different today!
Right now, the product has much less attractive interest rates, so when you switch to long-term savings, it’s important to know that there are other options that might be better for you. This is where capitalized insurance comes in!
For this reason, we have selected three key points in favor of capitalized insurance to help clarify the differences between these financial products.
1. Easier to redeem
Because the purpose of PPR is first and foremost for your savings and investments. Retrofit, more specific and stricter than expected early redemption conditions. In these cases, the insured can only repay the principal early due to factors such as unemployment, illness, retirement, etc.
Capitalized insurance, in turn, has easier redemption conditions and contributes to greater freedom of movement of capital. Therefore, after signing a 5 year 1 day contract, customers can redeem their own generated items without penalty of any kind.
2. Risk-free capital guarantee
In many cases, the policyholder chooses to subscribe to Social Security savings plans that are directly linked to shares. Due to the volatility and instability of the financial market, the PPR may be affected by valuation and annual amortization. In other words, in the event of a PPR depreciation, consumers will find that the plan balance will be less than the money originally invested.
The same is not true of capitalized insurance! By choosing this financial product, the insured can track annual revaluations knowing that their capital is insured without the risk of losing the amount invested.
3. Tax advantages
Although OSR’s income tax is lower than capitalized insurance, the tax is more complicated due to the stricter refund described above.
The tax advantages of capitalized insurance are becoming more attractive as smaller and smaller taxes are applied to income. Therefore, we verify the following taxes for redemption:
- 5 years ago: pay 28% income tax;
- 5 years to 1 day to 8 years: the percentage drops to 22.4%;
- The contract expires, 8 years and 1 day: only 11.2% is paid.
Regardless of the financial product you choose, it’s important to set a realistic goal that matches your needs. Also, identify the funds you intend to redeem early on and make sure you can meet the default recurring amount.
To help you transfer your OSR to capital and collateral, do not hesitate to contact the experts at DS SEGUROS, who will provide you with an advantageous quote at a competitive price. Request your simulation now!
