There are two types of programs on the market today: the one with a lump sum, which is usually a short-term, and the other one is a long-term with periodic contributions. The first option is often offered by banks as an alternative to deposits, insurance coverage against a certain set of risks and additional income from investments.
The second option is aimed precisely at accumulation and financial support in difficult situations, the expert emphasizes. These are more customized programs, before purchasing which the client's goals, needs and current capabilities are carefully analyzed. Perelygin calls such ULI (universal life insurance) a flexible tool: it allows make amendments, receive payouts on insured events that occur during the period of the program, and the amount planned by the client accumulates by the end of the term.
“In the current environment, when the issue of financial stability and preservation of savings as well as availability of the instrument used becomes major for many consumers, such policies cater to the needs of people and provide them with financial protection at an acceptable cost from the first day of the contract. We are confident, the demand for them will continue to grow in 2021,” notes Perelygin.
The endowment policies are usually issued for a long period, from at least five to up to 30 years. The client makes contributions within the whole term, at the end of which he gets the entire accumulated amount and, possibly, income, as the insurer invests part of the paid-in funds.
This plan is suitable for those who intend to save money for a long time and methodically, for example, for real estate or a child's education, and in addition to that have insurance coverage. A long-term and methodical approach is the most important thing in such an agreement, since it is unprofitable to withdraw money ahead of time, it will be possible to return only a certain share of the deposited.
Photos are from open sources.