The main perks of this type of insurance include the following:
Guaranteed life protection: from the moment of the first payment, the policyholder is provided with coverage for the full policy amount.
Possibility of expanding coverage: the policyholder may sign additional agreements to protect against various risks.
Incentive for savings: the policy maintains discipline in the regular formation of savings, which helps achieve financial goals.
Fund security: insurance benefits are protected from seizure and arrest providing financial stability in the event of financial trouble or policyholder’s death.
Fast payment: in case of policyholder’s death, heirs can receive payments within a month.
However, it is necessary to consider some drawbacks:
- Risk of denial in payment: if the cause of death is not covered by the terms of the policy;
- Reduction of insurance amount when adding extra risks and additional costs to cover them;
- Incremental costs for early termination of the contract.
Source: https://www.pravda.ru/news/insurance/2018111-nakopitelnoe-strakhovanie/
Photos are from open sources.
