The first european life insurer, Generali, has thrown a cat among the pigeons by announcing that the performance of its contracts would be reduced by the management fee. A decision adverse to investors, which could quickly expand.
life insurance is primarily its success to the existence of the fund in euros. This financial support guarantees the capital invested, net of fees, on payments, with the possibility for the investor to recover all or part of his money when he feels like it. But beware, before the summer, Generali, first european life insurer, announced that from now on, this guarantee would be less an annual management fee !
clearly, In the case of zero return from the euro funds, the capital would be started in the amount of the management fee. This change will affect new sales in the Italian insurer. Spirica, a subsidiary of Crédit Agricole Assurances, has warned that she would soon follow.
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The measure extends
But we discovered that other companies had adopted this policy with the utmost discretion. Contracts stamped Allianz, GMF, Maaf, MACSF, MMA, Swiss Life, have them as a guarantee parcel.
How to know if you are affected ? It will be necessary to analyze the tables of surrender values, which indicate precisely the minimum amounts that the insurer guarantees in the event of redemption. Lost in the middle of the general conditions of the contract, they are not very legible. In the column in the fund, in euros, if the amount is diminishing year by year, the insurer applies the guarantee excluding management expenses (gross). If the amount remains constant, the guarantee is net of fees.
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This mode of calculation to the benefit of the insurer. To guarantee a lesser amount back for him at least provision of money. For the investor, the difference of the guarantee on a net or gross was up here without a result, with returns of the fund in euros, significantly higher than the costs of contract management. This will not be the case in four to five years, when the rate of pay the average market will probably be equal to the management fee, around 0.80 %.