En many countries taking out an insurance policy as a retirement fund may have tax advantages.
or interesting from the point of view of the asset protection is that, also under Swiss law, no money deposited into a policy can be claimed in court by creditors. In other words, the funds delivered are guaranteed against claims and seizures, provided that the beneficiaries are spouses and children.
They carry costs of own service management provided by the insurance company. Some products may have entry fees and annual commissions. Although there are no capital taxes, only 75% -80% of such profits go back to investors.
Altogether, it is a rather conservative investment, based on real estate products, such as mortgages, with few capital benefits. The risk is as low as the interest earned, since Swiss insurance companies have great stability and a financial base. The invested capital can be used as collateral for a loan made by the insurance company itself.
En some high tax jurisdictions it is not mandatory to declare contributions to life insurance. In general, this investment form allows deferring taxes until the collection or redemption of the policy. In some cases, instructions may be provided for the collection of the heirs as if it were a “trust" Also in some countries the amounts invested in life insurances they cannot be claimed by creditors. In addition, there is a common European insurance market that should be explored as a form of investment, in addition to the fact that the benefits of insurance are excluded from the European Savings Directive.
PFor residents of high taxation countries it is an interesting investment product, due not only to the interest it provides, which are not very high, but because the premiums can be deductible, according to the legislation. Despite providing dividends, they do not count as other financial assets. In some countries the contribution to a single premium insurance may be taxed.
Although they are also offered by companies from other jurisdictions, these are insurances that are subscribed preferably in Swiss insurers.