The entry threshold varies from company to company and from different programs in one company. There are programs with a one-time premium, where thousands or tens of thousands of dollars, euros or pounds are needed to participate. There are, however, savings programs that provide for a small initial contribution and regular premiums.
Before issuing an investment life insurance policy, it is worth considering the following:
Investments in UL are not covered by the deposit insurance scheme. If insurer goes bankrupt, you may lose some or all of your deposited money.
There is no guarantee of extra income. Unlike bank deposits, the interest on which is known in advance, the return from UL is unpredictable. For example, a person can earn more than 10%-20%, or the return can be 1% -3%.
At the agreement conclusion, you will be informed what percentage the buyers of the same policies have received in the last three years. But even if returns have been high in the past, they may not necessarily be the same in the future.
All of the above characteristics of investment insurance contracts must be specified in the memo, which must be carefully read and signed before entering into a UL contract.
Learn what events are considered the insurance event in the contract that you are offered, for example, whether you will be paid money if you get injured while doing extreme sports.
Find out under what circumstances you may be denied payment. In particular, chronic diseases that you did not report when concluding the contract may be the reason for refusal.
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