The insurance company accrues a small income on the main part of the premium minus interest to cover risks. There are usually three following risks:
death of the insured;
disability;
the end of the contract period, if you live to see it.
Money is invested in the most conservative products: deposits, federal loan bonds and others. Super profitability is not promised, but there will be no losses either.
Additionally, you will receive a 13% tax deduction. The insurance coverage under the ILI agreement is not considered the property of the insured, and therefore cannot be confiscated, arrested, enforced by action; it is not subject to division in case of divorce and it can be bequeathed to any person. This person will be able to receive the redemption amount without waiting for inheritance.
Profitability in ILI is not guaranteed but assumed. According to the Central Bank of the Russian Federation, the average return on investment insurance is 2.4–3.3% per annum, and in most cases, it tends to zero.
Source: https://vc.ru/about
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