Cash in with fund policies

In unit-linked insurance policies do not necessarrily stick the best funds, but mostly by the insurer and its subscribers. As counter holding investors and improve their return on investment.  Insurance Expats . independent advice from specialist insurance brokers

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His trust in the advisor of Deutsche Bank Michael vacation book cost more than 4300 €. Just 1309.41 € he remained for more than four years of his contributions € 5600, when he announced his unit-linked life insurance. Most of the money had flowed into the account the insurance Zurich German Herold had fed fund manager of the German banking subsidiary, DWS and landed as a commission for the bank itself.

During the deliberations in the bank "was never discussed what funds and insurance which should I choose," says the now 33-year-old industrial engineer. The saleswoman suggested "to deposit the contribution into the Fund and DWS DWS accumulation of wealth Fund I. How closely Zurich and the German Bank are in league with each other plus DWS, including the then BAföG receiver no idea.

For unit-linked insurance policies insured usually pay monthly contributions. Some of the money is spent for costs fatality and commissions. The majority of moves in mutual funds is not laid out as in the traditional life, from the insurer. Insurers manage unit-linked life and pension some 47 billion euros - a roaring business for the whole financial sector: banking and financial sales advisor collect commissions, fund companies are looking forward to on regular inflows. Insurers appreciate that they can pass the risk of investment on the customer, because there is a guaranteed interest as endowment policies are not in fund policies. Guaranteed best, the repayment of contributions to maturity, so an interest rate of zero. Otherwise, the Insured his hands full, his money has safely to by stock market turmoil. The value of the policy fluctuate as the prices of the funds that drinstecken.
Cost of fund policies are high

The costs are high. The acquisition costs, including commissions for the agents, the operating costs of insurance and a possible rate surcharge on the monthly payment is to fund costs. Fund companies withdraw the fund's assets each year automatically charges. When funds Concentra Allianz Global Investors (AGI) were the last fiscal year proud 2.8 percent: management fee, custodian fees, custodian fees, transactions costs, administration fees, reporting costs, publishing costs, testing costs, success fee - the imagination's the limit. About two-thirds of the 1.5 billion euro, hidden in the expensive Concentra come from fund policies.