Generali Vision Review

This is my personal and unbiased review of the Generali Vision Plan, for the benefit of Expats in UAE.

Why we Need Saving Plans in UAE?

Before I review the Generali Vision Plan, it is important to analyze the need for such plans. Generali Vision and other similar savings plans in UAE enable a disciplined and a regular savings approach for expats in UAE. Generali Vision ReviewThey help capital accumulation by putting together regular monthly savings, which otherwise can be a challenge. The early surrender charges on such plans act as a deterrent for encashing before the savings goal is achieved. Such plans help investment in international funds allowing diversification while protecting your savings from Currency Depreciation and Inflation. While these are evident benefits, one must understand the pros and cons of such investment plans before investing in them. This post aims to review the features of Generali Vision Plan, helping expats understand if investing in this plan can help them achieve their investment goals.

Review – Generali Vision Plan

Safety 

Vision is brought to you by Assicurazioni Generali S.p.A. (Generali) in the UAE.  Generali is registered under UAE Federal Law No. 6 of 2007 and regulated by the Insurance Authority. Globally Generali is one of the leading insurers in the world, with a presence in more than 60 countries.

It has more than 500 Billion Euro’s Assets Under Management. Generali is among the top 50 companies in the world, according to the Forbes 500 list. It is one of the top 10 global insurers in term of assets held and premiums collected in a year. The following is the rating of Generali over the years, confirming the strength of the group;

RATING – INSURANCE FINANCIAL STRENGTH

Rating

Moody’s Baa1
Fitch A-
Am Best A

Transparency

The Vision brochure is transparent, and it provides all the relevant information about the plan. Investors are advised to obtain a copy of the brochure and read it carefully before deciding to invest their hard earned savings into to the plan. It is surprising to know that people will spend hours for planning a vacation, but when it comes to investment, they don’t  want to read the investment literature. More than 80% of investment mistakes can be avoided by reading the accompanying literature. You can download the copy of the brochure by clicking here.

Liquidity – Initial Premium Period

All Regular Savings Plans in UAE have a fixed initial period. During the Initial Period, 100% of your Regular Premium is allocated to Initial Units. These units are used to pay for the administration fees and other charges of the plan. Generali Vision Plan’s initial period depends on the premium payment term selected.

Premium Payment Term (years) Initial Period (months)

5

4.95

10

13.20

15

15.54

20

18.78

25

22.92

While most plans in UAE have 18 months initial period, Generali offers shorter initial periods for plans with shorter premium payment terms. A Generali Vision 5 years plan or a 7 years plan is ideal for residents looking for investment plans with lower initial period.

Generali Vision Plan

Generali Vision 5 year Plan – with 4.95 months initial period.

When an investor is not confident of being able to invest in a long-term plan, they can choose Generali Vision for easy and quick access to their investment. On completion of the plan, they can further extend the plan for whatever term they are comfortable, or start another plan.

Investment Funds

The investment funds are the key to the success or failure of an investment plan. Generali Vision offers a wide choice of direct funds from reputed investment fund houses across the world. One can build a well-diversified portfolio by choosing from the wide range of funds. If you are a beginner and would like to know more about international investment funds, please click here. The investments have to be chosen based on a strategy, with specific goals for each investment fund on the portfolio. Active monitoring and review of investments in consultation with your financial advisor is essential to buy and sell investments within the plan, depending on your Generali Vision plans provide 24/7 online access to the portfolio with average holding cost of each investment fund on the plan. Knowing the average holding cost is useful when deciding to sell a particular investment fund.

Charges and Bonus 

The charges and Bonus on the Generali Vision Plan have to be analyzed together to understand the real cost of the plan.

Bonus

Generali provides a Bonus allocation depending on the monthly premium paid into the plan, encouraging clients to invest a higher amount. The Bonus allocation is as follows; Generali Vision Review Generali also provides a Loyalty Bonus for plans with 10 years and above a bonus of 5% of all regular premiums that you have made. Additional bonuses (5% of all regular premiums paid in the previous five years) will be added on the 15th, 20th, 25th and 30th plan. The following chart explains the loyalty bonus payment made on a plan with USD 500 monthly premium. Generali Vision Review

Guaranteed Maturity Bonus

On a 7 years premium plan the current promotion is a guaranteed Maturity bonus of 7.00% at the end of 84 months. The bonus is subject to regular and complete payment of all 84 premiums into the plan.

Free Premiums

Generali will add 2 month’s free additional premiums on regular premium plans of at least 10 years and a minimum premium of USD 1,000^ per month (or annual equivalent).

One Free Premium is added to plans with a minimum premium payment term of at least 10 years and a minimum premium of USD 500^ per month (or annual equivalent).

The charges on the plan are as follows;

Particulars Charges for Plan less than 10 years Charges for Plan more than10 years
Plan fees $4.50, deducted monthly, before investing the premiums collected $4.50, deducted monthly, before investing the premiums collected
Administration Fees Payable up to year 5
2.75% of all premiums paid till date on the plan. Charged at the end of each year, on policy anniversary Payable after year 5 2.00% of all premiums paid till date on the plan. Charged at the end of each year, on policy anniversary
Payable up to year 10
2.00% of all premiums paid till date on the plan. Charged at the end of each year, on policy anniversary Payable after year 5 0.30% of all premiums paid till date on the plan. Charged at the end of each year, on policy anniversary
Investment Administration Charge 1.5% per annum is deducted, at the end of each year, on policy anniversary 1.5% per annum is deducted, at the end of each year, on policy anniversary
Fund Level Charges Bid Offer Spread: 0% to 2% Depending on funds bought and sold
This is the buying cost associated with the buying or selling of the funds Annual Management Charge: 0.50% to 3.00%
Bid Offer Spread: 0% to 2% Depending on funds bought and sold
This is the buying cost associated with the buying or selling of the funds Annual Management Charge: 0.50% to 3.00%

The bonus and promotions act as a discount on the charges and the net charge could be approximately between 1.50% to 2.00% of the total amounts invested into the plan. This means; if the investment funds earn 10.00%, your plan value will increase by 8.00%

Summary

This is a detailed and unbiased Generali Vision Review. To know more about the plan and to understand if it will suit your investment needs and risk profile arrange a Free Initial Meeting with me.

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