The savings component

### Savings in executive insurance – savings are the larger component of the premium money.
– A significant portion of the savings is invested by the insurance company in the capital market, i.e., the stock exchange.
– Savings in executive insurance are invested in the free market and are exposed to market fluctuations.
– That’s why the policies are called “with-profit policies.”
– If we won, you won, but if we lost, you lost too.
– You could call the policy “participates in losses,” but it “participates in profits and losses.” ### Investing in the capital market – no risk, no chance, and investing in the capital market is riskier than buying guaranteed bonds.
– Investing in the capital market holds the potential for a higher profit than the fixed return on bonds.
– An examination of the long-term capital market shows a higher return from solid investment avenues.
– We are talking about long-term investment: until retirement age. ### Investment paths in executive insurance policies – There are personal investment paths with different levels of risk. – Each saver may choose the path that suits him best. – It is possible to switch from one path to another within the policy. – The longer the investment term, the more logical it is to increase the risk level. – When there are only a few years left on the policy, it is recommended to switch to a more solid investment path. – The saver’s personal preferences and personal and financial situation must be taken into account. ### What is the insurance company’s return forecast based on? – It is impossible to know the future return on the money in savings. – It is possible to calculate a reasonable return of %-4% per year. – Most insurance agents will present a reasonable expected return, but some agents calculate based on excessive returns. ### What are the management fees in insurance policies? – The insurance company charges a fixed management fee of 4% of each deposit and an additional 1.05% annual management fee of the total accumulated funds. – This is the maximum rate set by law, but the management fee is negotiable. – If you are employed by a large company, you are likely to pay lower management fees. – The remaining profits are added to the savings funds and accumulate a return using the compound interest method.