bs-preloader__icon
ru kz en

Latvians often choose accumulative insurance with regular contributions

The minimum period of accumulation has been increased from 5 to 10 years in Latvia this year. "We absolutely support such changes, this accumulation should be long-term, then in case of financial market fluctuation this risk will be much less", Gint Konrads, the representative of the Latvian Association of Insurers, said on the air of the "Open Question" program LR4.
Latvians often choose accumulative insurance with regular contributions

"Secondly, when people conclude a contract, it is very important that contributions and bonuses are regular so that the contribution does not coincide with the market's rise, then it falls, which changes the portfolio greatly. It is clear that people realize the importance of these issues; and there are not many policies with a single payment. And, if we are talking about a capital levy, this year it is already 20%. It did not exist earlier, then, it was 10%. Now it is 20%. People should keep in mind that when they are considering one or another financial instrument they are buying", he added.

Contributions are justified costs for which you can get an income tax refund, the discussion participants noted.

Tom Kreuzbergs, Indexo Fund representative, complains that information about the terms of insurance is difficult to find and not easy to understand. He urged all interested people to carefully assess the conditions, as the promised growth in the accumulated amount may disappear due to commission; its size varies quite a lot from the insurer to the insurer. As a result, the client is at risk of getting less than he has invested.

At the moment, the universal life insurance package in Latvia is about 400 million euros together with contributions from legal entities.

"The growth is around 10% a year. But, of course, this is 10-11% of what is accumulated in Latvia at the second tier. And, of course, it takes a long time for those contributions and the capital to grow. Of course, we can add what accumulated on pension funds, but it is 20% of the second tier", said Christina Lomanoska, the SEB representative.

"The main role of the product is insurance, saving is secondary", Conrads stressed.

Please note that universal life insurance is one of the possibilities to save money for retirement.

Source: https://rus.lsm.lv/statja/novosti/ekonomika/latviyci-chasche-vibirayut-nakopitelnuyu-strahovku-s-reguljarnimi-vznosami--associacija.a278454/

Photos per websites: everydayme.ru, healthyfamiliesbc.ca

Share
read also
Vera Gordeeva: “Money must work and make a profit”
Vera Gordeeva: “Money must work and make a profit”

An insurance company combines a variety of diverse business processes. The company ha...

Blockchain is to change the insurance market
Blockchain is to change the insurance market

Smart contracts are the great opportunity for blockchain technology use...

Fitch assigned Standard Life, Kazakhstan, a “B” rating, “Stable”.
Fitch assigned Standard Life, Kazakhstan, a “B” rating, “Stable”.

Strong position of the company in terms of regulatory solvency was noted. The ratings...

The most interesting materials of the site you have in the mail! Subscribe to the newsletter.

ASK A QUESTION TO THE EXPERT
ASK A QUESTION TO THE EXPERT
Submit your application