bs-preloader__icon
ru kz en

Research: who buys life insurance in Kazakhstan

The employees of life insurance company Freedom Finance Life have conducted a survey among Kazakhstanis aged 30 to 65 to find out which insurance products they are interested in, how much they are willing to pay for insurance and for how long they prefer to issue policies.
Research: who buys life insurance in Kazakhstan

Age and gender

37% of respondents with life insurance agreements are people aged 35 to 45 years. 33% are over 50 and 20% are people under 35. Kazakhstanis at the age from 45 to 50 years are the least interested in insurance.

The majority of those entering into contracts with life insurance companies are women. They account for 77% of the total number of respondents, men - 23%.

How much do they earn?

The majority of respondents (45%) who have signed contracts with LIC at least once earn an average of 400-600 thousand tenge per month. The income of 25% of respondents is over 600 thousand tenge. 12% of respondents earn in the range of 250-400 thousand tenge. And 8% are people with earnings up to 250 thousand tenge.

What kind of life insurance are they interested in?

73% of respondents prefer universal life insurance (ULI). These programs combine the functions of deposit and insurance. 27% prefer such risky products as insurance against coronavirus, critical illness (cancer and cardiovascular disease), travel insurance and accident insurance.

How much do they pay for insurance?

According to 83% of respondents, Kazakhstanis most often conclude contracts with a minimum premium of up to $1,000. The programs with a minimum contribution of up to 10 thousand dollars are of interest to 10% of respondents, and 7% of respondents are interested in the programs with the premium from 20 thousand to 50 thousand dollars.

Why to buy insurance?

When concluding life insurance contracts, Kazakhstanis pursue different goals as insuring themselves and taking care of their relatives this way, accumulating the necessary amount, forming a financial cushion or retiring under the retirement annuity program.

In the course of the survey, 73% of respondents named universal life insurance the most effective financial instrument for protecting savings from devaluation. 43% of respondents are interested in such programs in order to leave legacy in the form of accumulated capital and keep savings from confiscation, arrest and division in property disputes.

30% of those surveyed signed contracts with life insurance companies to save up for children's higher education. 13% of respondents entered into retirement annuity agreement. Under the program terms, men can retire at the age of 55, and women - 52. 7% want to save up for a major purchase, for example, apartment or car, with the help of ULI contracts.

10% of respondents want to use endowment life insurance programs to secure savings against fluctuations in the tenge exchange rate and increase their capital.

For how long are insurance contracts concluded?

Most policyholders prefer to conclude endowment insurance agreements for a period of 10 years or more, according to 77% of respondents. 20% of respondents choose contracts with a term of 5 to 10 years and only 3% prefer contracts with a term of no more than 5 years.

As for endowment contracts, which help Kazakhstani people save up for their children’s education, it should be noted that the term of the contract depends on the moment the child enters the university. 60% of respondents believe that the most optimal accumulation period in this case is 10 years. 20% of respondents have signed contracts for a period of 5 to 10 years, 13% - up to 5 years.

There are also peculiarities in retirement annuity programs associated with the term of the contracts. Thus, only people aged 45 and over can conclude such contracts, under insurance terms. 47% of respondents entered into an annuity agreement at this age. 30% of respondents believe that the most optimal age to sign such an agreement is from 45 to 50 years, 20% chose the age of 50 and older.

Photos are from open sources.

 

Share
read also
What are the most common diseases Kazakhstani people suffered from in 2018?
What are the most common diseases Kazakhstani people suffered from in 2018?

Chicken pox has become a leader in the number of registered cases, according to kursi...

Kazakhstan took 67th place out of 163 countries in the social progress ranking
Kazakhstan took 67th place out of 163 countries in the social progress ranking

In the social progress ranking of countries Kazakhstan took 67th place out of 163. Th...

3 signs that annuity can help in retirement
3 signs that annuity can help in retirement

According to experts, only retirement annuities (remuneration payment or payment of p...

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