"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.
Photos per websites: everydayme.ru, healthyfamiliesbc.ca