Difference between guaranteed capital and projected capital
Two concepts to clarify when entering a third pillar
Life insurance policies or third pillar policies, whether they are 3A or 3B have two objectives: retirement provision and family safety in the event of death or disability of the insured person.
This type of instrument is therefore ideal for achieving medium and long-term savings objectives.
Depending on the type of product that the customer has chosen, there will be guaranteed capital and projected capital on the insurance offer when the contract expires.
The guaranteed capital is the amount that the insured, in the event of life and upon payment of all the agreed premiums, will receive upon expiration of the contract, regardless of how the economy has gone during the entire contractual term.
Generally, the guaranteed capital is equivalent to the sum of the savings premiums, plus any interest provided by the tariff. By projected capital, on the other hand, we mean the sum between the guaranteed capital and the additional profits that the insurance company manages to obtain by investing its capital.
This additional profit is called excedents. Not being able to guarantee them, profit sharing will not be reported on the insurance contract even if, depending on the type of product, each year, the customer will receive communication from the company on how many surplus shares are attributed.
The insurance market, in recent years, has been getting closer and closer to products linked to investment funds, or linked to index participation. We therefore want to draw your attention to the importance of choosing a company that, in terms of risk management, is closest to your investor profile.
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