Mixed insurance, the comprehensive solution
With little more than a month to go before the end of the 2018 fiscal year, we still have the opportunity to reduce our tax bill while saving for retirement and protecting our assets and our family a little more, all of which we can achieve through a Mixed Insurance. The day-to-day absorbs us; the present prevails, immediacy and the short term take positions, and inadvertently we are delaying decision-making on matters that will significantly influence our future well-being and that of our family.
Do you think it is an impossible combination?
The solutions are there, and it is only necessary to know them; the mixed insurances contracted through Insured Pension Plans are life insurances that share the advantages and the fiscal treatment that pension plans have, but in which the profitability and the capital of retirement benefits are guaranteed and also include guaranteed capital in the event of death and disability coverage.
How does mixed insurance work through an insured pension plan?
Mixed ownership insurance combines savings and family protection in the same product.
An important part of the annual contribution will generate benefits that, year after year, will consolidate a fully guaranteed capital on the date of retirement.
The remaining part will be used to cover the death of the insured and may also include coverage in case of disability. In the event of premature death, the beneficiaries will receive an insured capital that is much higher than the premiums paid (especially during the first years); this amount is known from the moment the policy is contracted and is increased each year with the annual bonuses of additional capital.
Both coverage and capital are fully guaranteed regardless of what may happen in the financial markets since the insurance company protects you from these risks.
In addition to all of the above, mixed insurances have several options when dealing with the payment of premiums; if you do not want to commit to paying until retirement, you can opt for “limited payments,” which is an interesting option since it allows establish a duration for the payment of premiums that is less than the total duration of the insurance. In this way, it is possible to stop contributing in a year that is previously determined from the moment of contracting and nevertheless continue to enjoy the additional annual capital bonuses until the expiration of the policy, at which time the guaranteed capital is received for retirement.
And finally, we come to the “extra” of the tax benefit, which you will enjoy each year through the reduction of your tax bill when submitting the annual income tax return since the total premium contributed to the mixed insurance through PPA is fully deducted from our tax base, including the portion of the premium allocated to a disability, death and accident coverage, with a maximum limit of 8,000 Euros per year or 30% of the sum of the net income from work and economic activities received (whichever is less).
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