We believe it is necessary to inform of all the benefits that can be achieved through the savings on insurance company products. Tax benefits as well as profitability and solvency benefits in the companies where we leave our money, for a correct and profitable management of it.
The government and its view of the solvency of the insurance sector
In early April, in public, the Minister of Economy publicly pointed out the importance of the insurance sector during the economic crisis, It has now consolidated its strength. It has a weight of 5% of GDP in insurance premiums. But, most importantly, it has not cost the Spanish economy a single euro, as no insurance company has had to be bailed out.
Precisely for this reason, we point out that savings in insurance companies are the safest there is. The solvency requirements imposed on these entities are reflected in the fact that none of them has collapsed in recent years, unlike the banking sector. The government itself says that one of their advantages has been, and still is, the such prudent asset management which is carried out by insurance companies.
Main advantages of savings in insurance companies (taxation)
We are going to leave you a infographics which, in a very simple and summarised form, outlines the main advantages of the different products offered by insurance companies, which are:
- Assured Pension Plan (PPA)
- Individual Systematic Savings Plan (PIAS)
- Individual Long-Term Savings Plan (SIALP)
- Life Annuities
These advantages have already been detailed in previous posts, such as this one, in which we listed the advantages of the income tax advantages of pension plans. Fundamentally they can be:
Reduce the personal income tax base on the contribution or exempt the profits from taxation.
In addition to the security of your investment, of course.
As a result, the government, which shortened the term of the bailout from 10 to 5 years in order to obtain a tax advantage, is considering further improvements.
If you would like to know in detail the advantages and what a good savings plan, Contact us. Contact us and we will give you our best advice.
