Savings Policies

In recent years, insurance company savings policies have emerged as a popular way to save for weddings, apartments or university education. Parents who want to help their children with large expenses in the future can already start saving for them now. As an example parents may decide to invest their monthly child allowance into these plans to save for their children’s futures.

Insurance company savings policies offer many advantages:

Simple savings policy with no insurance element backed by regulated insurance company
Suitable for investing small amounts of money and allow for regular monthly contributions
Avoids bank fees such as custody, trading commissions and other security fees
Funds are liquid at all times
No fees for switching investment tracks i.e. from conservative to aggressive
Capital gains tax is paid only when redeeming the policy – this is an amazing tax deferral benefit
As long as funds remain in policy, profits accrue tax-free, even if investment track changed
Beneficiaries can be explicitly listed on policy

Due to these numerous benefits, this investment option has grown rapidly over past years with over 100 different policies offered by the leading insurance companies. Similarly the options offered by the policies have expanded to a wide combination of asset allocation, investment style and investment management.

Given these are insurance products, proper advice is needed to guarantee your personal circumstances and needs are being met and to learn if they are right for you and your family.

Please feel free to call us on 072 222 3336 for more information.