At the end of the NOVIS life insurance policy contract, you can choose whether to receive the capital in a lump sum or in the form of an annuity, scheduled to a specific time scale, thus supplementing your earned income or pension

At the end of an investment, is it better to receive all the capital in one lump sum? Or is it more useful to plan an annuity that supplements your income, whether from work or retirement, over time? The answer is linked to the objectives that each person set when they decided to take out a life insurance policy to protect and manage their assets.

NOVIS is an innovation that meets a range of needs

Aware that every investor has their own story and therefore different profiles and needs, NOVIS, an international insurance company is specializing in life insurance,has introduced important innovations in its insurance products.

Aware that insurance and investment solutions are an increasingly decisive component in the financial planning of families, professionals, and individuals wishing to protect their assets, NOVIS believes that these instruments should support clients in the evolution of the life cycle, ensuring adaptability to their changing needs over time.

Thanks to its ability to innovate, NOVIS has thus managed to reconcile the rules that underpin insurance products and ensure their robustness, with elements of flexibility that better meet people’s needs, which vary according to life situations. These may include a change in employment, the addition of a new family member, new international circumstances, and age-related needs.

With this in mind, NOVIS has also paid special attention to when the capital is repaid at the end of the contract. One of the company’s main innovations is thus the option of paying out everything in one lump sum or turning the amount accumulated into various financial instrumentssuch as pensions, annuities, or even financial planning for children’s education expenses.

Lump sum or annuity: how to choose

In order to understand which option best suits your needs, you need to ask yourself: what is the ultimate goal of the investment?

This point, which is the critical aspect of all asset management choices, is crucial to understand whether it is better to receive the capital in a lump sum or to favor an annuity.

If the goal of the investment was to accumulate resources to make an important purchase (a house, for example), to realize a project such as starting a business for yourself or your children, or simply to have liquidity available to use in the family, receiving the capital in one lump sum is the answer to your needs.

What has been set aside over the years is paid out all at once and falls immediately into the hands of the beneficiary (the insured himself/herself or his/her loved ones), who can then use it as s/he sees fit.

If, on the other hand, there is no need to have the capital immediately, because the person concerned does not foresee any major expenses in the immediate future, it may be useful to think of a return in the form of an annuitywhich will supplement available income, whether from work or from a pension, by increasing spending capacity at regular intervals.

This alternative can be particularly useful from a pension perspective, especially for young people who risk a large pension gapand end up with half the income they were used to overnight. Alongside conventional forms of pension supplementation (pension funds) and new ones such as the PEPP, having an annuity plan also from the repayment of the invested capital helps to increase the resources at your disposal.

The annuity can also be useful where the beneficiaries are children, who can thus be given a periodic share of income to help them make investments in education or meet the costs of starting their own business.

Whatever your motivations, what is important is to be able to choose between different capital repayment arrangements, as provided by NOVIS, in order to freely opt for the solution that best matches your needs.