It is difficult to save up for the purchase of housing, children’s education, secured old age or any other goals. Life insurance will help to provide you and your loved ones with financial protection against unforeseen events in your life.
Endowment Life Insurance
Cumulative investment life insurance can provide material support in the following cases:
Termination of employment;
Accumulation of capital for personal purposes
If you cannot earn money due to injury or illness, insurance will cover treatment and recovery costs, as well as family support, if you are the main breadwinner in the family.
How does investment life insurance work?
This type of insurance resembles a bank deposit. The policyholder regularly pays contributions to the insurance company’s account, and receives money back with accrued interest after a certain period of time. The main difference between such insurance and bank deposit is that the insurance policy is issued for a longer term, from 5 to 20 years in average. The size of profit to be received by the insured is also different.
During the accumulation period, the insurer invests part of the paid contributions in highly reliable assets, and pays the insured a revenue share. The advantage of investment insurance over bank deposits is that the insurer's funds are invested in reliable assets, and he can be confident in their safety. Besides, the insurance coverage is not subject to taxation, and the policyholder can receive a tax deduction from the paid contributions annually.
Economic instability forces us to think about the future, because no one can predict what happens to the economy in a few years, and we are responsible for our income and expenses, therefore we need to take care of a decent life, including retirement, by saving and investing now.
Photos are from open sources.