With the arrival of September and after a summer full of expenses, we all begin to seriously consider saving as a necessary objective. And, without a doubt, one of the alternatives that can offer us the best return for our money is the savings and investment insurance.
But, With so many options available on the market, it is natural to wonder which savings insurances are the most cost-effective.. The truth is that the answer depends on many factors, such as your specific needs and, above all, your risk profile as a saver.
In this article we explain in detail how you can find out which are the most profitable savings insurances for you, and we also name some interesting options for 2025.
What is savings insurance?
In case you are not entirely clear, let us first remind you what savings insurance is:
In short, savings insurance is a financial product that combines the features of a savings product with the characteristics of a life insurance with various savings and investment tools.
Its main objective is to help people to accumulating capital over time, guaranteeing a return or benefit and, at the same time, providing cover in the event of death. Don't forget that it can be dangerous at times. having a lot of money in the current account if it is not generating any interest.
There are two key features of these products:
- The programmed savings. They allow you to make regular or one-off contributions, which accumulate in an account for you to use in the future.
- Your profitability. These insurances offer a guaranteed interest or a return linked to the financial markets.
Types of savings life insurance: guaranteed and non-guaranteed
However, there are different types of savings insurance. In fact, this is the first thing you should consider if you are looking for the most profitable savings insurance because, depending on your expectations and your level of risk, it may be more convenient to choose one or the other.
In a general classification, we could divide them into two main types: guaranteed and non-guaranteed.
- Guaranteed: If you have a conservative profile and do not want to run the risk of losing part of your investment, the guaranteed products are your best option. This type of savings insurance guarantees both the capital and the interest generated, which means that there will be no surprises at the end of the contract. A clear example of this type of products are the Individual Systematic Savings Plans (PIAS) or the Individual Long-term Savings Insurance (SIALP), which offer you security in exchange for a lower return.
- Not guaranteed: If, on the other hand, you are willing to take a little more risk, the non-guaranteed products can give you access to higher returns. Here, the percentage of equities is key: the larger it is, the greater the risk you take, but also the greater your potential returns.
What is your risk profile?
Therefore, when choosing the most profitable savings insurance for you, it is essential that you first identify your risk profile:
- As we mentioned before, if you prefer not to risk any of your capital, you clearly have a conservative profile, Therefore, you should opt for guaranteed products.
- But, if you don't mind taking small losses in the short term with the possibility of gaining more in the long term, you have more of a moderate profile and you should move towards products with higher equity exposure.
- It is also possible that you have a risky profile and seek maximum returns, while taking on increased risk and possible fluctuations without any problem.
Whatever your case may be, what we will always recommend is that you analyse your medium and long-term needs. For example, the purchase of a car or a house, or even your retirement, as saving now will help you significantly when that time comes.
And, of course, you can count on the advice of a professional brokerage firm such as PIB Group Iberia is always a good idea to find the most cost-effective savings insurance. No one knows these products better than our experts, who will help you find a policy that suits your financial situation and your goals.
Advantages of guaranteed products
As mentioned above, guaranteed savings products are ideal for those who do not want to put their capital at risk.
The advantages of this type of life savings insurance include:
- Guaranteed capital. No matter what happens in the market, the amount you invest will always be protected.
- Fixed interest. You will know in advance how much you will earn each year, which will help you plan your finances with confidence.
- Limited but assured liquidity. There are products that offer full availability of the money at any time, and others that require a minimum permanence. Depending on your objective, it will be important to check the liquidity of the one you wish to take out.
Alternatives not guaranteed: more risk, more benefits
On the other hand, if you are not afraid of risk, non-guaranteed products also have their benefits. There are three main types of non-guaranteed savings insurance:
- Fixed income. These are products that invest in financial instruments with predictable returns, such as bonds or treasury bills. Although they do not guarantee capital, they have a moderate risk compared to other investment options. Returns may be lower, but they offer some stability.
- Equities. This category has the highest exposure to assets such as equities, which implies higher risk and also more return potential.
- Mixed income. This type of product combines fixed income and equity investments, achieving a balance between security and growth potential.
An example of a very popular non-guaranteed product is the Unit Linked, Do you know them? They are unit-linked life insurance, which adds additional cover in the event of death. Your return depends on the performance of the funds in which you invest.
These products are often ideal for those who are looking for a long-term investment and do not mind facing market volatility. In addition, they can offer tax benefits, which makes them a very interesting option if you have experience in investments or if you have the support of a professional to guide you. We are talking, for example, about the PIAS or the SIALP, which offer interesting tax returns at the time of redemption. Search whenever you can tax-advantaged savings products.
Commissions, penalties and other details to be taken into account
Incidentally, one of the key factors when choosing the most profitable savings insurance policies is the commissions and potential penalties that early redemption may entail.
Therefore, before signing any contract, be sure to check the terms and conditions of the contract. Some savings insurances include commissions that can significantly reduce the final return., so it is essential that you are well-informed!
Remember that the best savings insurance is always the one that guarantees a balance between profitability and security. And if you are not sure which is the best option for you, don't hesitate to seek professional advice from an insurance comparator trustworthy.
Savings insurance vs. deposits: which is more profitable?
Now, if you have reached this point, you may be wondering whether savings insurance is really more profitable than bank deposits, or vice versa.
Well, the answer is clear: bank deposits usually offer a fixed and limited return, while savings insurance, especially non-guaranteed ones, can provide you with a higher return by investing in financial markets and seeking to offer the best alternative.
The importance of professional advice to get the most cost-effective savings insurance
As you have seen, finding the most cost-effective savings insurance is no easy task. There are many options on the market, each with their own pros and cons, but The most important thing is that you don't have to make this decision alone.
At PIB Group Iberia, we work with a wide network of insurance companies, so we will always offer you a 100% alternative adapted to your needs.
Don't think twice: contact us and finally make the right decision for your savings and peace of mind.
