Investment life insurance (Unit-linked) is a form of cumulative life insurance that allows you to protect life and health, as well as receive return from investments. Unit-linked policies do not require large initial investments and such policies are eligible for tax deductions. It is worth noting that insurers do not guarantee return. However, mutual investment fund does not guarantee return to its clients. Mutual fund is a collective investment of funds in securities, which allows you to receive higher returns. By purchasing a share, an investment company’s client has the opportunity to effectively allocate any amount on the financial market with a return potential higher than the rate on a bank deposit. There are usually no minimum placement periods.
Placing of funds in investment insurance is not subject to divorce settlement, and this amount cannot be seized. The guaranteed part of the insurance premium is invested in conservative fixed-income instruments (bonds, stocks). The smaller investment part is placed in more profitable and risky instruments. As a result, customers who buy UL are in the black.
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