Generali Vision, Generali Savings Plan, Savings Plan Dubai
Generali Vision - Best Regular Savings Plan in Dubai.
Generali Vision is the best regular savings plan in UAE.
It adapts to the changes in your life...
It is ideal for individuals who wish to invest investing in Islamic Savings Plans to achieve their financial goals such as;
Idikhar Plus is a unit linked savings plan; investing the regular contributions of plan holders into Sharia Compliant Investment Funds of international repute.
Definition of Sharia Compliant Mutual FundsInvestopedia defines Sharia Compliant Funds as follows
An investment fund which meets all of the requirements of Shariah law and the principles articulated for "Islamic finance."
Shariah-Compliant Funds must follow a variety of rules, including investing only in Shariah-compliant companies, appointing a Shariah board, carrying out an annual Shariah audit and purifying certain prohibited types of income, such as interest, by donating them to a charity.
Like other offshore investment plans in UAE, this plan is takaful-based savings plan. However, the minimum takaful amount is set at AED 5000/- to minimise the cost of family takaful.
Other optional riders can be added to the savings plan if necessary.
Salama also has the following index funds with very low management costs, to help you save and invest for your medium to long term financial goals;
Click here to access the detailed list of funds on Salama's website
You can choose up to 10 funds according to your risk appetite, growth rate expected and investment horizon. An Independent Financial Adviser can explain you more about the funds and help you construct a robust portfolio.
You can also choose pre-designed investment strategies offered by Salama for if you do not wish to select funds on our own.
Click here to know how to build a portfolio of investment funds.
For Example: If you start a 10-year investment plan with a monthly contribution of $2,000 a month then an additional bonus allocation of $7,200 will be added to your plan on day one.
The total amount invested including your investment on day one would be $9,200 instead of $2,000. This additional bonus is an encouragement to invest a higher amount for the longer term.
It is essential to build and manage a robust portfolio of investment funds otherwise, the growth may not support the charges on the scheme. The following are the charges on the plan;
PlanTerm |
Plan Year |
|||
1 |
2 |
3 |
4+ |
|
5-9 |
5.50% |
6.50% |
6.50% |
6.50% |
10-25 |
5.00% |
5.50% |
6.00% |
6.50% |
It would be wise to invest in an Idikhar Plus plan with a short premium contribution period and remain invested as long as possible; to reduce the impact of charges.
For Eg: If you are 30 and are looking to invest for your retirement, you must ideally select a contribution term between 5 & 10 years.
By doing this, you only pay the Establishment charge for the premium contribution term only, while you can remain invested in the plan till you need the money for your retirement.
This reduces the average cost per year and also the longer you remain invested, you also qualify to get a higher loyalty bonus (See table below), thus reducing your charges further.
Plan Year |
Loyalty Bonus |
3rd - 10th |
0.25 % |
11th - 15th |
0.50 % |
16th onwards |
0.60 % |
Early Surrender Charges
Like all regular saving plans early surrender / Full Encashment of the scheme attracts huge penalties. Many expats end up paying high surrender charges, sometimes more than 60% of the capital invested because they did not consider this aspect before signing up for the plan.
Some expats were made to believe by Unscrupulous bankers / financial advisors that they only need to pay for a short term like 13 /18 or 24 months, and they can encash the plan with the profits after that. Unfortunately, they end up losing their hard-earned savings due to the early surrender.
While there are benefits like the wide choice of Sharia funds, Allocation Bonus, Loyalty Bonus, Premium Holiday and Partial withdrawal, Idikhar plus also has various plan charges and early surrender penalties.
It is crucial to read the terms and conditions, understand the impact of charges and the possible growth of funds, before investing in the plan.
Most importantly it is very crucial to plan the premium contribution term and maturity term based on each person's individual situations.
It is better to be conservative and choose a shorter premium contribution term without getting lured by the allocation bonus.
You can arrange a Free Initial meeting with me to know if Idikhar Plus or any other Regular savings plan in UAE can help you achieve your investment goals.
Author, Blogger & Independent Financial Advisor. My goal is to give you actionable tools for creating passive income and building wealth. More than 10,000 expats have already used my ideas to jumpstart their journey towards financial independence. Connect with me to start yours...
It adapts to the changes in your life...