Mutua Madrileña launches its 'plan B' for letters: a life insurance policy with a 2.5% return.

The financial sector continues to launch products to attract new savers. The latest is Mutua Madrileña, which launched Plan Ahorro Plus Fidelidad VII , a life insurance savings plan with a guaranteed gross return of 2.5% during the first year (the return net of expenses will be 2%), 25 basis points lower than its predecessor as a result of the interest rate cut by the European Central Bank (ECB).

The insurance, backed by the solvency of Mutua Madrileña, a company chaired by Ignacio Garralda, can be purchased with a minimum initial contribution of 750 euros and allows for additional contributions starting from the same amount.

In addition to guaranteeing the invested capital at maturity and an attractive return, the insurance includes a death benefit for the insured , in which case the beneficiaries will receive their existing savings at that time, plus an additional capital of 10% of the accumulated savings at the beginning of each year (with a minimum of 150 euros and a maximum of 1,200 euros).

Mutuactivos AV markets this new offering for low-risk clients who demand conservative investment solutions. Marta León, Director of Life Insurance at Mutua Madrileña, points out that this new product is an alternative to investing in government bonds, current accounts, and bank deposits . "With this new insurance, we aim to meet the demand of savers who are risk-averse and want to preserve their capital without sacrificing attractive returns," León adds.

The Ahorro Plus Fidelidad VII Plan has a risk level of 1, on a scale ranging from 1 to 6. This is the seventh edition of a product that has been very well received in all its versions. Since the launch of this range of insurance products in 2022, the balance of provisions has reached €385 million.

The life-savings insurance marketed by Mutuactivos AV, Mutua Madrileña's exclusive agent, is taxed only when a partial or total reimbursement is made for the income generated, which is considered income from movable capital. The death benefit is subject to Inheritance and Gift Tax.

The Ahorro Plus Fidelidad VII Plan applies a 0.5% commission on the mathematical provision , which is already discounted from the 2% net return guaranteed for the first year and, in addition, a premium for death coverage, the amount of which is calculated based on the age of the insured.