Investments, especially in stocks and other market instruments, take time to show stable growth. In the short term, market fluctuations can significantly affect returns. However, over 10 years or more, volatility smooths out, increasing the chances of higher returns.
The longer you hold an investment, the more compound interest works, where investment return is reinvested and generates additional returns.
In most countries, long-term investments, including investment life insurance, have tax advantages. For example, in 10 years, investors can receive a full tax exemption on investment return or apply reduced tax rates.
In some jurisdictions, life insurance payouts are not subject to inheritance tax, making long-term policies an advantageous means of transferring wealth.
Long-term assets tend to outpace inflation. Investment instruments such as stocks or bonds help protect capital from inflation over a long-term horizon. This is especially essential for investors who want to preserve and increase the purchasing power of their savings.
Thus, investment insurance for a term of 10 years or more allows you to extract maximum benefit due to long-term profitability, tax benefits, reduced market risks and financial security.
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