Life and Savings Insurance

Life insurance policies are savings products, where the guaranteed capital is the result of the profitability generated by the periodic payment of certain amounts. The insured party may either wait for the expiration of the term fixed in the contract, and then collect the benefit, or collect the value that has been generated up to that moment, thereby exercising the right of surrender.

Surrender is a right granted by law to the policyholder, in certain life insurance policies, which consists of the possibility of obtaining, in advance, all or part of the indemnity due to them, in proportion to the table of values specified in the policy.

Some examples of life insurance and savings schemes are:

Insured Pension Plans (PPA)

Insured Pension Plans are intended to complement state benefits through private savings.  The main purpose of these policies is to cover retirement, but they may also cover disability and death.

They have advantages over individual pension plans, since they provide a more stable return, and over life-savings insurance, since their tax breaks are better. These are considered an insurance product in which the policyholder (who takes out the insurance) is both the insured (the person exposed to the risks covered) and the beneficiary (who will receive the benefit contemplated in the insurance).

Systematic Individual Savings Plans (PIAS)

Systematic Individual Savings Plans are a financial insurance product. They involve accumulating capital that will serve in the future as a supplement to a state retirement pension; they are based on an insured annuity, the amount of which will depend on the total capital accumulated.

This insured life annuity can start to be received once 10 years have elapsed since the first payment. The tax benefit of these products is that no taxes will be paid on the return generated before the benefit is received.

One of the main advantages is that they allow the accumulated savings to be obtainedat any time. However, if they are cancelled within ten years of being taken out, the holder will lose the previous tax advantage.

Another peculiarity of this instrument is that each taxpayer may only contract one systematic individual savings plan (in contrast, it is possible to hold more than one pension plan). Additionally, due to their nature as life insurance policies, PIAS offer an insured sum should the insured party die.