What is a פוליסת חיסכון?
A פוליסת חיסכון is an investment product offered by insurance companies. Despite the name, in most cases the emphasis is not insurance but investment management in various tracks.
You can deposit a lump sum or regular deposits, choose an investment track, and track performance. The money is invested in the capital market and other assets according to the track policy.
The benefits and the prices
The main advantage is convenience: one product, structured tracks and switching between tracks within the product. For some savers it is simpler than managing an independent investment portfolio.
The price is mainly management fees and a level of transparency. That is why it is important to compare costs, understand the level of risk and check performance over several periods, not just in one good year.
Choice by purpose
Money intended for the next two years should not look like money intended for another ten years. As the horizon is longer, a more volatile course can be considered, but there is no obligation to do so.
Before joining, you should ask: what is the purpose of the savings, when will I need the money, am I able to see temporary declines, and what are the management fees I will pay over time.