News 5 strong alternatives to life insurance
Saturday, 03.12.16 , written by Anja Schlicht With the life insurance reform law, life insurance is clearly losing its appeal. Not only the participation in surpluses is being redefined, the guaranteed interest rate is also decreasing once more. Fortunately, there are some life insurance alternatives, but not all of
Alternatives to life insurance promise return
The Life Insurance Reform Act has been passed. Although it should preserve the life insurance as one of the most important forms of old-age provision in Germany, said Finance Minister Schäuble. However, as a private pension, the life insurance is put on the siding with the law, especially as the guaranteed interest rate was reduced to 0.9 percent as of 1 January 2017. With inflation between one and a half and two percent, this means there are hardly any return options for newly concluded classic contracts – even with surpluses. It is therefore urgent time to look for alternatives to life insurance.
Alternative 1: state-subsidized old-age provision
There are some alternatives to life insurance. Anyone who attaches great importance to security – one of the central arguments in favor of taking out a life insurance policy – can take a look at state-subsidized pension products such as Rürup Rente. Although the sinking guaranteed interest rate on some offers also has a negative effect here. But with the state subsidies for the Riester pension and the tax advantages of the Rürup pension, many stately financial cushions can be built up for retirement. Recent Rürup pension tests show the best deals.
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2. Alternative call money and time deposit: Much security – Low interest rates
Another safer alternative to life insurance is day and time deposit accounts . The invested money is protected even in bankruptcy of the bank up to 100,000 euros by the deposit insurance . Investors therefore do not need to fear losses in the face of new turbulence on the financial markets. In addition, they can rely on their money comparatively flexible . But “if I invest my money safely, I can not expect high interest rates, ” explained Ralf Scherfling of the consumer center North Rhine-Westphalia to the news agency dpa. Interest rates on term money accounts are sometimes so low that they can not offset inflation. De facto, the investments passbook, deposit to minus business.
3. Alternative to life insurance: real estate
While the persistently low interest rates on the capital markets make life insurance companies difficult, another alternative to life insurance benefits from the low-interest phase: construction rates are extremely low. With the appropriate comparatively cheap finance their own home. With your own four walls not only rents are saved, but they also serve as a private pension. For real estate financing, however, a few thousand euros should already be available as equity. So this alternative is not suitable for every person.
Alternative Number 4: Funds
Another alternative to life insurance requires some courage. But the risk can be rewarded by high returns . Because instead of monthly pay into a life insurance, savers and investors can also invest in funds . Either a large sum or a small amount on a monthly basis can be invested in real estate or equity funds, for example, by means of a fund savings plan. The advantage over individual stocks is that the risk of capital loss is dispersed. The investment comparison calculator shows interested parties which offers are available depending on their willingness to take risks and the duration of their investment. But if you want to work more deeply with certain products together with a financial expert, you should request a non-binding investment offer.
5. Alternative to life insurance: Farewell to the guaranteed interest
Last but not least, life insurers themselves offer alternatives. For example, some providers have opted out of the guaranteed interest rate – ie the interest rate of the savings account that the insurer has at least guaranteed. Instead, they offer new collateral and higher return opportunities with new guarantees . Well-known offerings include AXA Relax Pension, Ergo Pension and Allianz Perspektive.
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- Anja Schlicht
- editorial staff
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