Reply by Devere Group

Generali International is one of the top companies in the international investment market. As a leader in their field they offer excellent value products for regular investment and lump sum investment. As independent brokers, deVere Group are able to choose from a wide range of products depending on the client’s individual situation. The need to save is fundamental to securing your future and maintaining the standard of living you have become accustomed to. As well as investment advice, deVere Group offers a wide range of financial planning solutions from currency exchange services to pensions and mortgage advice.
Author's
Crawley, England
3.4K views
74 comments

Your super-friendly unregulated offshore IFA has told you all the great bits about the Generali Vision Plan. BUT did they mention……………

Charges based on an average £500pm plan:2% admin fee (industry standard is 1%).£30 Policy fee.1.5% investment allocation charge (industry standard 0-0.5%).0.75% charge based on the advisers fund choice, so the fund that the adviser chooses can incur this charge, normally to obtain further commission. £7,500 adviser's commission based on £500pm over 25yrs (YES, I said 7.5K that wasn't a typo!)So 4.25% in charges and at least £7,500K commissions

Initial period:In order to pay for all these charges including the adviser's commission there is an initial period where 100% of YOUR premiums are NOT invested from the start of the plan.Table as follows:On a 5yr plan none of your money is invested for the first 3.6 months.10yr equals 13.2 months.15yr equals 15.6 months.20yr equals 23 months.30yr equals 28 months.So, on a 25 yr plan, if you cancel the policy up to month 23 you will get nothing back (ZILCHO!). Only after this period does you money get invested and therefore, it can take 2yrs before you start to invest any money, up until then EVERY penny you have put into the plan has gone into the pockets of Generali and the IFA. This is why it can take roughly 6-8YRS to break even on this plan (as admitted by Generali). Also admitted by Generali is that most plans are cancelled within 8 years.

Flexibility?All these charges are applied based on the highest premiums you pay. So, if you increase the premiums the charges increase BUT if you decrease the premiums the charges continue to be based on the HIGHEST monthly premium you were payingSo, if you started paying £1000pm but you reduced your payments to £50pm you would continue to pay fees and charges based on £1000 per month. NICE!

Finally the Generali plan performance is solely based on the funds that the salesman puts your money into within the plan. As almost ALL unregulated offshore IFAs dont require the salesemn to have any experience, qualifications or otherwise (have a look at the Devere group recruitment page) picking the correct funds and monitering them is like handing over your wages to a 10yr old with a choclate fetish.

So there you have it, possibly one of the worst insurance backed investments on the market and one that is banned from sale in the UK by the FSA. Wonder why?!

Don't belive me? Generali factsheet.http://www.generali-gi.com/downloads/gi_vision_brochure_final_11.09.pdf

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Comments

Anonymous
#637124

Actually the info in the post are facts from the vision tech brochure (not something those so-called IFAs like to show you) so there are no inaccuracies. Its just the basics of the plan which you can get from the Generali website if you want to get to the real truth of the matter.

It does have bonuses built into the plan but it is still mega loaded with upfront charges and costs that make it only suitable for the completely uneducated and gullible investor - avoid, avoid avoid!

Latininvestor1
#636854

The above has many inaccuracies and ignores a very important fact.The Generali Vision plan offers monthly, initial and loyalty bonuses which can reduce the overall fees to zero.

USD500 per month is about the threshold to do this. Also it is not intended as 2 or 3 year plan. Those that took out this plan and wanted to save for less than that timeframe were not advised properly.

Otherwise it works perfectly well, gets very good returns and is good value for money.It's also tax efficient and secure against possible systemic risk.

Anonymous
to Latininvestor1 Abu Dhabi, Abu Dhabi, United Arab Emirates #636992

These loyaltly bonsuses come in later in the life of the plan, long after most have jacked them in as a bad lot.

You ignore interest and the effects of inflation. Returning the fees, a long time later in the form of bonuses, looks good on paper. But the effects of the early fees are the problem. Since a lot of these are sold in places like the UAE, where there is no tax, this does not equate to tax efficiency. These arrangements merely defer tax to later. Use of local capital gains breaks in many jursidictions is far more tax efficient.

What is the average lifespan of these plans that are sold as 25 year arrangements? I heard 7 to 8 years. So, if correct, the "bonuses" are irrelevant.

Anonymous
London, England, United Kingdom #609341

How funny is that.

This man is a needs a check on the vanity meter! He works for a poorly-regarded sales company but he seems to think he is some-sort of guru.

I'm still laughing...

Anonymous
Grimsby, England, United Kingdom #609929

My boss is very well off indeed, and I would love to be in his position. But, he is one of nature's gentlemen and I have no problem with the fact that he has done well.

This is appalling. What on earth must the employees think of this " I am so wonderful" website.

Someone needs to have a word with him.

Anonymous
Bath, England, United Kingdom #609307

Looks like I taught him well, see how his people pay homage on the testimonials page. That is as it should be and all is well.

Hail to the leader, you are lot not worthy.

Anonymous
Nottingham, England, United Kingdom #608799

Mikeint.

Please don't suggest the Generali plan is a great savings plan as its simply a life assurance backed policy, and this is how you guys get around selling this rubbish as savings plans i.e. to avoid investment only regulation and take a wad of commission.

You are either saving or you require a life policy. This product and its crazy charges and massive upfront loading (a throwback charge from the 80s) has no place in modern financial planning. Oh, except if you want to take a truck load of commission!

My Advice is don't touch with a barge pole!

I'll challenge anyone to come up with a good reason to take out a Generali vision plan.....bring it on.....

PS. I really know my stuff.

Mikeint
to Tom London, England, United Kingdom #608834

Tom, I'm glad you really know your stuff, and I have at no point suggested the plan is great.

The plan maybe suitable for different people, as I have already stated it is the miss use of the plans by bad salesman and advisors.

There are a number of things that have to be taken into consideration when reviewing investment options and making a blanket statement that its not suitable for anyone is incorrect. People need to be informed.

I'm not getting into an argument, this thread clearly shows the costs and the front loading of the plans. In my opinion this is generally coursed by people not knowing the true impact of how investments can impact people's lives or they just don't care.

Anonymous
Nottingham, England, United Kingdom #608683

To Mikeint

As a regulated adviser, don't you feel a bit guilty then about flogging Generali to the Swiss expats, knowing that you are banned by the UK FSA from selling it to your UK clients because it is a pile of crude.

Two-faced springs to mind

Mikeint
to Tom London, England, United Kingdom #608687

Tom, as I stated before, the product has to be right for the individual.There are very few regular savings plans out there and it's how it's positioned.

The two situations are different, there are at times better products offshore that UK residents can't have and there are sometime better products onshore. The key is to make the client aware of what there getting into and how it works. This tread has come about due to the miss selling of the product, not the product itself. There is also an issue with the funds chosen but the advisor to increase the commission, there are a range of funds available, so why not change them.

As for my Swiss expats or any expats I deal with around the world, I look at what is the best way to meet there objectives, in Switzerland there is a pension contribution that can be made which I do before any other regular savings.My comments were really to help people who have been miss sold or made a mistake, not to protect Generali Vision.

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