The first thing to talk about is accident insurance.
The particularity of these contracts is that coverage is provided only in case of accident consequences. Such a policy will provide relatives with payment, for example, in the event of the insured’s death in an accident or due to a fall from a height. However, such a policy does not provide for payment in case of death from illness.
Life insurance with savings
There are other policies on the market that allow make savings within the insurance contract. Why might this be interesting?
There are two reasons for that. The first is the so-called free insurance. With long terms, endowment life insurance policies are able to accumulate more money than the contributions made. And insurance in such policies becomes, so to speak, free.
Of course, security always costs money. However, the investment return on the contributions made is able to cover the cost of insurance in savings policies with long validity terms.
The second reason is that savings policies make it possible to get a wider range of options. This can be protection against critical illness, payments, when necessary, in the event of surgical interventions, or even a guaranteed payment of capital in the event of disability. The ability to protect yourself from the maximum number of risks is very attractive in savings policies.
There are policies in which the amount is not guaranteed. In the best-case scenario, the insurer indicates a higher amount of final savings with a possible investment return; it may or may not be accumulated. This is the expected capital amount; it is also indicated for the client in the draft policy.
The pro of such a policy is security against many risks and ability to make savings by the end of the agreement. The con is the fee will be quite high.
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