[GNC] insurance policy with guaranteed value: how to record increase in value?

[Michael or Penny Novack]

Ah, my line of country, insurance.

Some questions (details)

a) Do they not give you an annual statement? One that indicates increase 
in "cash value".

b) I do not QUITE understand the guaranteed return of 0% UNLESS that is 
increase in value OTHER than the component from "survivorship". If 
including "survivorship" (the fact that you are now a year older --- you 
did NOT die in the previous year) this would be a terrible product 
compared to what where I used to work would offer. In other words, is 
that 0% a guarantee on the "investment" component?

Assuming you get an annual statement, you could adjust manually at that 
time. The asset would go under "fixed assets" and you are correct that 
you would not be using the "price editor".


Michael D Novack  FLMI

On 2/23/2019 6:54 AM, Andrea Borgia wrote:
> Hello.
>
> I have an insurance policy which works like this:
>
> - after the initial payment, I could make additional payments, up to a 
> month ago, and I did.
>
> - the company has to have 100% backing for the money received by 
> customers for this product, meaning all of them could theoretically 
> ask money back at the same time and it would be possible for the 
> company to reimburse the sums with no ill effects (so called "Gestione 
> Separata" in Italian)
>
> - there is a revaluation guarantee at 0%: regardless of the 
> performance of the investments made by the company (typically a few 
> percent points per year), the worse it can happen is that I earn 
> nothing for one or more years; what is already consolidated from the 
> previous year, stays there.
>
> - it's an insurance policy so there are additional benefits but those 
> are not relevant to my question.
>
>
> Having said that, I wonder how to properly record the current value 
> for this investment: at the moment, the account type is "Attività" 
> (asset) and I have already recorded the commissions paid as costs. In 
> the meanwhile, one year has passed and the value has incresed.
>
> I cannot use the price editor, because this product doesn't really 
> have shares like in the stock exchange or like managed investment 
> funds. I mean, I could change the account type but it would make no 
> sense to me.
> Is there a way to do it with the price editor? I would need to record 
> a new total value, instead of a new commodity unit value.
>
>
> Given the revaluation guarantee, I could simply record the difference 
> between the new and the previous values as a gain and be done with it.
>
> Does it seem reasonable?
>
>
> Thanks,
> Andrea.
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There is no possibility of social justice on a dead planet except the equality of the grave.