At a global level, the level of knowledge in the economic field is quite scarce and according to numerous studies in this field in Italy too, things are not changing as financial education is weak and not very advanced. In the world of finance, even before proceeding with any operation, correct information is fundamental to make a reasoned choice, capable of satisfying one’s needs.

If, in this field, we began to accept the principle that even a small action can have important effects on the economy of the country, we could lay the foundations for real improvements. There are various financial instruments and endless expectations of returns, but what is currently the safest investment? The only way to answer this question is to avoid unnecessary spinning of words and accept the idea that there is no such thing as a 100% secure investment.

A similar operation can only be considered such when, at a predetermined date, the money invested is returned in full and is able to avoid any probability of bankruptcy. The separate management that you have in insurance policies, for example, is certainly a positive factor in terms of guarantees. Insurance and policies are among the most complicated aspects of the relationship between bank and client. However, they are very particular forms of investment and in some ways controversial, so it is good to clarify them.

Investment policy: this is how it works

Investing in insurance can be an interesting way to make your savings pay off, but it’s not as simple as it sounds. The market for financial policies is a constantly evolving market that, for obvious reasons, divides public opinion between those who consider the investment valid and those who think it makes little sense to approach the world of insurance as an investment. The most popular types are essentially three:

index-linked policies, life policies that provide for payment at the expiry of the premium paid at the time of underwriting plus a possible premium in relation to the trend of the financial parameters of reference. In addition to the risks assumed by the issuer, this type of contract is characterized by very low return possibilities, hidden costs that the company communicates only on demand and a high probability of not paying interest.

Capitalisation policies, which are unclear instruments with a very low return, also materialise after a long time since their performance is linked to insurance funds such as high cost bonds. In practice they do no more or less than what could be done by buying a mix of CCTs and BTPs on the market.

Unit-linked policies, on the other hand, are policies whose premiums are invested in mutual funds where capital is used for index-linked transactions using derivative instruments. They are financial-insurance products different from more traditional policies because they offer some protection against harmful events. They are the only ones that take the contours of real investments because the return is linked to an underlying financial asset. All the larger groups have launched products of this type.

Insurance policy: what is the alternative?

Having said that, it is undeniable that there are significant disadvantages associated with this particular type of insurance because these products are generally not very profitable from a yield point of view. To this must be added the broader issue of costs, since they involve the payment of the monthly premium, the rate on financial annuities and the running costs of the company.

There are valid alternatives and among them there is undoubtedly the iosonobanca platform, an innovative tool that, to return to what was said initially, is designed for those who have specific knowledge of at least one sector of the economy. Any conscious investor will be able to exploit the potential of the system.

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