Investing in children
Unfortunately, the desire to save up does not always coincide with the family possibilities. Parents even more often do not have enough knowledge about the tools for creating children's capital. Therefore, the help of relatives will definitely not hurt. If you are ready to systematically participate in a child’s life (for example, your grandson, nephew or goddaughter), you may well offer their parents such a gift option as a children's savings policy. This care will at least not go unnoticed, and perhaps it will become a key step towards a secure future for the baby. New Year holidays are perfect time for such undertakings.
A savings policy for younger family members is also suitable for teenagers: you can discuss the purpose of savings with them and attract them to investments. This will increase both financial literacy and discipline.
How does the savings program work?
Insurers offer policies in different currencies: tenge, dollar euro with terms depending on companies.
The foreign currency program provides for a lump-sum payment from $100, but it is possible to conclude an agreement that will allow annual, quarterly, or monthly contributions.
The return on such policies on the market reaches up to $3.52%, and it is many times higher than bank offers.
The client chooses the amount of contributions and the duration of the program based on his goals and capabilities, but the longer the term, the more profit the policy brings.
From the first day of the contract, the client’s life is insured for the amount many times greater than the amount of premiums paid.
All programs provide for targeted transfer of savings. The beneficiaries are specified in the contract.
Investment return accrued during the entire insurance period is paid at the end of the program.
The client has the right to terminate the contract at any time, having received the redemption amount with the accrued investment return.
A present for yourself or loved ones
The New Year is a perfect occasion to start something new, for example, try your hand at investing. Unit-linked is the best option. This policy may also be of interest to those who are looking for higher returns than accumulative insurance can offer, but are not ready to get engaged in active exchange operations on their own, as they take time and money for commission costs to brokers.
Unit-Linked is an investment product with insurance coverage, which is an analogue of investment management, in which the investment risks are borne by the insured by independently choosing an investment strategy.
In other words, this is a product similar to asset management, but with insurance coverage. Each insurance premium paid by the insured consists of two following parts:
- one part is directly related to the insured risks (i. e. the insurance company’s property);
- the second is a funded or investment component invested in instruments of the stock and other financial markets (the insured’s property).
A life insurance company forms investment portfolios that usually follow international indices, which traditionally show stability and growth even during falling markets.
Many Kazakhstani life insurance companies such as Nomad Life, Halyk-Life, Kommesk Life, Freedom Life, Eurasia Life and Standard Life offer endowment or investment products.
If you are interested in endowment or investment life insurance policies, you can contact insurance company, where competent managers will help you choose the necessary insurance program, which will accommodate all the goals that are relevant to you.
Photos are from open sources.