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With unit-linked annuities, I would read the fine print very carefully. With commission-based contracts, you lose an extremely large amount of money in the first 5 years. It depends on the provider. If you absolutely want to take out insurance, pay attention to the cost and it has to be a fee-based contract. They are usually cheaper. And choose there normal ETFs and not actively managed funds of the company. With me it was with 100€ savings rate in the first 5 years 1000€ acquisition costs and per year 192€, which went for the management on it. In addition then still the ETF costs. In the first 5 years, I paid an incredible 4 monthly premiums just for the insurance without getting anything out of it. I cancelled immediately after the 5 years and invested the money with Scalable.
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@timg1355 with a fee-based nettopolicy, you pay the "high sum" right at the beginning and have less capital at the start. Especially since many providers do not have any nettopolicies in their portfolio. Often nettopolicies end up being more expensive than (good) commission-based policies. Especially since an annuity insurance is generally only profitable after 15-20 years. If this was not clear to you and you were dissatisfied with the policy, why did you cancel it only after 5 years?
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@Dr27589 exactly for the reason. I was not made aware of the costs and only saw this through the financial rebels because I only really got involved with it last year. That's why I didn't cancel until so late. It was all talked up so great at closing.
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@timg1355 I'm sorry, but I work as an insurance salesman. Means I have a very good policy + employee benefits. 😊
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@Dr27589 after 5 years the costs are paid or not? From then on the policy would be cheaper again
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@Finanzios Yes, it's true, but I don't see how I can pay 200€ of my 1200€ a year in administration. Sure you have afterwards lifelong pension but that is me then but too much cost
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@timg1355 that is exactly the factor I am aiming for. You don't know how long you're going to live, so your additional pension should be paid accordingly. Everything else I cover via the other savings plans.👍😊
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@Finanzios After 5 years, the acquisition and sales costs are covered anyway - if @timg1355 had noticed this beforehand, it would probably have cancelled sooner. By the way, I don't really like the lifelong pension. I choose a different payout model, which is much more "profitable". But you know the contribution. 😅
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@Dr27589 yes, I can also take a lump-sum settlement with mine. It's open to me 👍😊
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@Finanzios That's what they all offer. But it doesn't bring you much... you would then have a high tax burden and would have been better off with an alternative investment via your normal securities account. Maximum retirement age with shortened premium payment period and withdraw the money later through partial cancellations. This way, you can gradually shift the money into ETFs/funds as it suits you, without taxes and fees, and let it work for you.
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@Dr27589 cool tip! Thank you
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